07.16.15
SCA will invest approximately SEK 650 million ($76 million) in a new production facility in Brazil for the manufacture of incontinence products. Production is set to begin in 2016.
SCA first entered the Brazilian market in 2011 when it acquired Pro Descart, the no. 2 manufacturer of incontinence items in the country. Since then, SCA has increased its sales and marketshare in Brazil with its global leading brand Tena and the local brand, Biofral.
Brazil, which is one of SCA’s prioritized emerging markets, is the third largest retail market in the world for incontinence products where double digit growth has been reported in recent years. With a population of 190 million and favorable economic growth, Brazil is seeing strong growth potential across all hygiene markets.
“This investment will increase our production capacity and improve our profitability in Brazil in the long term. The investment enables us to capitalize 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,” says Magnus Groth, president and CEO of SCA.
The new production facility in Jarinu, Brazil, will replace a smaller existing plant.
In 2014, SCA’s net sales in Brazil were SEK 514 million ($60 million).
SCA first entered the Brazilian market in 2011 when it acquired Pro Descart, the no. 2 manufacturer of incontinence items in the country. Since then, SCA has increased its sales and marketshare in Brazil with its global leading brand Tena and the local brand, Biofral.
Brazil, which is one of SCA’s prioritized emerging markets, is the third largest retail market in the world for incontinence products where double digit growth has been reported in recent years. With a population of 190 million and favorable economic growth, Brazil is seeing strong growth potential across all hygiene markets.
“This investment will increase our production capacity and improve our profitability in Brazil in the long term. The investment enables us to capitalize 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,” says Magnus Groth, president and CEO of SCA.
The new production facility in Jarinu, Brazil, will replace a smaller existing plant.
In 2014, SCA’s net sales in Brazil were SEK 514 million ($60 million).