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SCA To Focus On Hygiene Growth

March 10, 2008

New organization structure implemented, COO named.

SCA will implement a new organizational structure with a strong focus on growth of its hygiene business effective in April. The new structure includes a global organization of SCA’s hygiene business, a focus on improving cash flow and profitability within the packaging and forest products segment and the creation of a chief operation position.

When Jan Johansson became President and CEO of SCA on 1 November 2007, he initiated a total review of the company’s management structure.

“We have concluded that SCA within the hygiene area must be quicker and more efficient in order for us to leverage the growth opportunities and also to, in this way, improve profitability,” said president and CEO Jan Johansson. “We must have a strong global approach in our hygiene business. Our new organization creates the prerequisites for our businesses to develop based on their respective conditions.”

SCA already has two brands with sales in excess of €1 billion—Tena and Tork—and the company plans to strengthen these brands while focusing on growing other brands by focusing on being number one or two in selected hygiene markets. The new global category organization will pool resources from the business areas into a new organization headed by Gunnar Johansson, currently president of SCA’s Personal Care business group. The new unit will serve as a motor to drive organic growth. business.

Kenneth Eriksson, currently president of forest products, has been appointed to the newly created COO position.