SCA intends to close down a paper machine at Ortviken paper mill and recognize an impairment loss for the mill

SCA intends to close down a newsprint machine at Ortviken paper mill in
Sundsvall, Sweden, and recognize an impairment loss for the mill. Efficiency
improvement measures will be implemented at the Obbola and Munksund kraftliner
mills. The closure, impairment loss and efficiency improvement measures entail
total costs of approximately SEK 1.4 billion and will result in annual cost
savings of about SEK 180m, of which approximately SEK 120m in lower
depreciation, with full impact in 2017.
The paper machine that is planned for closure at the end of 2015 has a capacity
of 135,000 tons and is the smallest and oldest of the four paper machines at
Ortviken paper mill.

“The global demand for publication paper has declined in recent years,
particularly for newsprint, and we have weak profitability at Ortviken paper
mill. By closing down our smallest and oldest paper machine, we will be able to
focus on profitable orders for the more efficient paper machines. Ortviken
remains one of the world’s largest publication paper mills and we have the
prerequisites to become one of the most competitive. We have developed several
new publication paper products, which in a short time have captured considerable
market shares in a declining market. We are now focusing on producing and
developing profitable publication paper products”, says Ulf Larsson, President,
SCA Forest Products.

In conjunction with the closure of the paper machine, SCA intends to reduce
staffing in production, transport and sales by approximately 95 positions. The
efficiency improvement measures at the Obbola and Munksund kraftliner mills are
intended to lead to staff reductions at the two mills by approximately 30
positions. Codetermination negotiations over the changes have been initiated.
The impairment loss amounts to approximately SEK 1.3 billion and will be
recognized as an item affecting comparability in the third quarter of 2015. The
restructuring costs amount to approximately SEK 90m and will be reported as an
item affecting comparability in the fourth quarter of 2015.

NB: This information is such that SCA must disclose in accordance with the
Securities Markets Act or the Financial Instruments Trading Act. The information
was submitted for publication on October 29, 2015, at 07:45 a.m. CET.
For additional information please contact:
Linda Nyberg, VP Media Relations, 46 8 788 51 58
Johan Karlsson, VP Investor Relations, 46 8 788 51 30
SCA is a leading global hygiene and forest products company. The Group develops
and produces sustainable personal care, tissue and forest products. Sales are
conducted in about 100 countries under many strong brands, including the leading
global brands TENA and Tork, and regional brands, such as Libero, Libresse,
Lotus, Nosotras, Saba, Tempo and Vinda. As Europe’s largest private forest
owner, SCA places considerable emphasis on sustainable forest management. The
Group has about 44,000 employees. Sales in 2014 amounted to approximately SEK
104bn (EUR 11.4bn). SCA was founded in 1929, has its headquarters in Stockholm,
Sweden, and is listed on NASDAQ OMX Stockholm. For more information, visit
www.sca.com.