SCA to invest USD 240 million in Mexico

SCA to invest USD 240 million in Mexico

In a move to improve its offering to consumers, while at the same time
strengthening competitiveness and profitability, SCA is investing in a new
tissue plant in Mexico.

“This is a strategically important investment. The plant, which will be located
near the key markets in and around Mexico City, will be integrated and highly
efficient,” says SCA's President and CEO Jan Johansson. “It will provide us the
opportunity to enhance product quality and thereby improve our profitability and
our offering to consumers.”

Mexico has a stable economy, with a rapidly growing middle-class, low inflation
and robust economic growth. Mexico is one of the paper and hygiene group SCA's
identified growth markets.

Currently, SCA's sales of hygiene products in Mexico and Central America total
SEK 2,910m (USD 458m), of which about two thirds is attributable to tissue. The
tissue market in Mexico is well consolidated and SCA is currently second, with a
market share of 18%. Producer brands, including SCA's, are totally dominant on
the Mexican convenience goods market.

“Market growth in Mexico has been 4-5% annually during the past five years and
our assessment is that the market will grow approximately the same in the
immediate years ahead,” says Jan Johansson.

Nearly 30 years ago, SCA formed a joint-venture company for hygiene products in
Mexico. Jointly with the local company Copamex, a successful business was
developed in personal care hygiene products. In 2004, SCA bought out Copamex
from the joint-venture company and at the same time, SCA had the opportunity to
acquire 50% of Copamex's tissue operations, which shortly thereafter became a
100% acquisition.

The new investment is strategically important to advance positions with regards
to profitability and customer offering.

In a first phase, a tissue machine will be built for dry crepe production, with
a capacity of 60,000 tons per year. The project also comprises a recycled fiber
plant, a converting hall with three lines for toilet paper as well as a
distribution center. The start-up is planned for end of 2010. The investment
amount is SEK 1,525 billion (USD 240 M). 


Stockholm, 5 September 2008  


For further information please contact
Pär Altan, VP Media Relations, +46 8 788 52 37
Johan Karlsson, VP Investor Relations, +46 8 788 51 30


NB
This information is such that SCA must disclose in accordance with the
Securities Markets Act. 



SCA is a global consumer goods and paper company that develops and produces
personal care products, tissue, packaging solutions, publication papers and
solid-wood products. Sales are conducted in some 90 countries. SCA has many
well-known brands, including the global brands Tena and Tork. Sales in 2007
amounted to SEK 106 billion (EUR 11.4 billion). SCA has approximately 50,000
employees. More information at www.sca.com