SCA Declares Fresh Investment in Pulp Production at Swedish Site

SEATTLE (Scrap Monster): SCA has announced its decision to invest in pulp production at its Ortviken industrial site in Sundsvall, Sweden. The company has decided to discontinue the production of publication paper. The investment of SEK 1.45 billion will restructure the operations to produce chemically pre-treated thermo-mechanical pulp (CTMP).

The company is currently engaged in negotiations with employee representatives regarding the closure of publication paper production. Upon conclusion of these negotiations, it will commence consultations regarding the impacts of the closure on employees. As per estimates, the decision is likely to impact approximately 800 employees, mostly located at the Ortviken paper mill.

Announcing the decision, Ulf Larsson, CEO, SCA stated that the company has decided to make complete exit from publication paper portfolio, as the demand for the product has been on a sharp decline during recent times. Furthermore, the decision will help the company to focus on other products with healthy growth and good prospects for the future, Larsson said. The company will offer the best possible solutions for the affected employees, he added.

The company had recently hiked the bleached softwood kraft pulp prices to $800 per tonne, effective October this year, on account of growing demand for pulp.

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