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SCA Announced Baby Diaper Efficiency Plan

March 26, 2010

Program includes closure of one site, upgrade of another in Poland.

SCA is expecting to ultimately save €15 million per quarter through a plan that will enhance efficiency and increase competitiveness of its baby diaper business in Europe. The company will move its retail brand production from Linselles to Olawa in Poland making Olawa the center of production for retail brand baby diapers. The Linselles plant will close in mid 2011, affecting about 280 employees while an efficiency project in the Hoogezand factory will affect approximately 50 employees until the end of 2010.

Thomas Wulkan, president SCA Personal Care Europe, said “These measures will result in an improved cost position for our baby diapers. This is particularly important for our retail brand business, which has been under heavy price pressure in the past years.”

The project will cost an estimated €60 million, of which €10 million will be written off. The costs will be booked in the second quarter 2010.

The savings are expected to be felt in the third quarter of next year.

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