SCA expands eastwards through several strategic investments

SCA expands eastwards through several strategic investments

SCA is investing within packaging on a broad front in Eastern Europe and China.
Expansion investments in two plants in Poland and one in Romania, together with
two new corrugated board plants in China, mark yet another step in SCA's plans
to capture market shares in some of the largest growth markets in the world.

SCA's CEO Jan Åström: “This is totally in line with our strategy to cultivate
these markets, above all in Eastern Europe and China. The investments will
enable us to meet customer demands more effectively and broaden our range of
services.” 

The investments in Poland are being made in Poznan and Olawa with approximately
EUR 7 million in each plant. In Poznan, the investment includes a design centre
for printing and laminating with a focus on consumer packaging and displays. In
Olawa, corrugated board is produced today and the operations will now be
expanded to allow SCA to benefit from the positive effects of the fast-growing
Polish market. The projects are scheduled for completion at the end of the
second quarter of 2007.

In Timisoara in eastern Romania, SCA is investing EUR 10 million to upgrade the
existing box plant to a fully integrated corrugated board plant. This investment
is part of the development of customer support throughout the region - which
includes other plants in Romania, as well as SCA Packaging's design centre in
Budapest and sales and production in Hungary - in order to achieve significant
synergy gains. The plant will be ready in 2008.

SCA's packaging operations in Nanjing, China, will be moved to a newly built
factory close to the old one which facilitates continued volume growth. The new
building will be 30,000 m2 and all machinery and equipment will be transferred
from the old facility. This investment will amount to approximately USD 12
million.

A totally new packaging plant in Suzhou, close to Shanghai, was inaugurated in
mid-April 2007. This USD 20 million investment is the largest made by SCA in
China so far. The plant will function as a one-stop centre for customers since
production of corrugated board as well as litho print and protective packaging
will take place under one roof. 

 “This new state-of-the-art SCA packaging facility will provide a strategic
platform for SCA's continuous growth in China. We are also prepared for future
expansion as SCA's packaging operations in the Suzhou region grow,” says Rijk
Schipper who is head of the Asia Pacific business group with operations in
packaging, tissue and personal care. 

For further information please contact
Bodil Eriksson, SVP Communications and Investor Relations, +46 8 788 52 34
Pär Altan, VP Media Relations, +46 8 788 52 37


Stockholm, April 27, 2007  


SCA is a global consumer goods and paper company that develops, produces and
markets personal care products, tissue, packaging solutions, publication papers
and solid-wood products. Sales are conducted in some 90 countries. SCA has
annual sales in excess of SEK 101 billion (c. EUR 11 billion) and production
facilities in more than 40 countries. SCA had approximately 51,000 employees at
the beginning of 2007. SCA shares are traded on the Stockholm, London and New
York stock exchanges. For more information, visit www.sca.com