SCA restructures tissue operations in France

The global forest and paper products company SCA, based in Stockholm, has announced plans to close one of its tissue machines at its paper mill in Hondouville, France. As part of its restructuring plan, SCA also announced that it will be reducing its employee ranks at its facilities in both Hondouville and Saint-Etienne-du-Rouvray, France.

Further, in Hondouville, where SCA manufactures away-from-home tissue, production will be concentrated to more efficient machines, enabling production levels to be maintained.

In Saint-Etienne-du-Rouvray, SCA has decided to divest its production of tabletop products for consumers. The switch, according to SCA, will give the company the opportunity to focus on the plant’s core operation: kitchen roll and toilet paper production. The measures will lead to lower production costs and increased competitiveness.

The company also has announced plans to close its baby diaper business in Mexico.

In a release, SCA says the move is part of the company’s plan to address weak market positions that have inadequate profitability.

Mexico is SCA’s 8th largest market, based on sales in 2015, and is highly prioritized by SCA. Despite closing the diaper facility, SCA says that it continues to hold leading market positions in feminine care, incontinence products and tissue in Mexico.