SCA, a leading global hygiene and forest products company, is going to set up a new production facility in Brazil at a cost of approximately SEK 650 million ($75 million).

 

The new facility in Jarinu will manufacture incontinence products. It will replace the smaller existing plant, and production is scheduled to commence next year, according to a SCA press release.

 

Magnus Groth, president and CEO of SCA, said, “This investment will increase our production capacity and improve our profitability in Brazil in the long term.”

 

“The investment enables us to capitalise on the growth opportunities that we can see in the Brazilian market for incontinence products and to potentially launch other product categories in the future,” said Groth.

 

Brazil is the third largest retail market in the world for incontinence products.

 

Brazil is one of SCA’s prioritised emerging markets. SCA established its presence in the Brazilian market for incontinence products through an acquisition made in 2011. Since then, SCA has increased its sales and market share in Brazil.

 

At present, SCA is the second largest company in the Brazilian market for incontinence products, with its global leading brand TENA and the local brand, Biofral.

 

In 2014, SCA’s net sales in Brazil amounted to SEK 514 million ($59 million). (RKS)