News

04. May 2010

SCA divests Asian packaging operation

SCA signed end of April 2010 an agreement to sell its Asian packaging operation and puts focus on hygiene growth in Asia. The buyer is International Paper and the purchase consideration amounts to USD 200m. In 2009, the Asian operation reported sales of approximately USD 250m and had according to SCA approximately 4,500 employees at 15 plants in China, Singapore, Malaysia and Indonesia. "We divest our packaging business in Asia in line with our strategy, to focus on our hygiene products there", said Jan Johansson, President and CEO of SCA.

The transaction is expected to be finalised during the second quarter of 2010, subject to approval from the relevant authorities.

International Paper: "We're buying good facilities at a good price as well as gaining an excellent team of 4,500 employees," said Paul Brown, President, IP Asia. "SCA's facilities complement our existing converting system of 12 corrugated box plants, which are principally in China. The combination strengthens our packaging business in Asia and will make it more competitive, more profitable and better able to serve customers." The SCA packaging business in Asia, which is primarily in China, consists of 13 corrugated box plants and two specialty packaging facilities.