SCA to close tissue production plant in France

The restructuring costs for closing the production plant are estimated to amount to SEK 480 million ($563 million), of which around SEK 380 million ($447 million) will be recognised as an item affecting comparability in the third quarter, stated a press release from the company. An approximate sum of SEK 260 million ($305 million) will be affecting the cash flow.

The total cost savings relevant to the acquisition of Georgia-Pacific's European tissue operations are expected to amount to €125 million ($139.15 million) upon full effect in 2016. The cost savings corresponding to approximately €95 ($105.74 million) million on an annualised basis have been achieved in the second quarter of 2015.

SCA is one of the world's largest companies amongst personal care producers, the world's third-largest supplier of tissue and one of Europe's most profitable producers of forest products. (HO)

Fibre2Fashion News Desk – India