The multinational paper company SCA, headquartered in Sweden, has announced several steps it is taking to strengthen its tissue business in the United Kingdom. In its first step, the company announced plans to invest in a through air drying machine at its tissue plant in Skelmersdale, U.K.
Further, the company has decided to close an older tissue machine at its Stubbins, U.K., paper mill and has signed an agreement to sell its tissue plant in Chesterfield to Sidcot Group Ltd. for about 35 million krona (US$4 million). The mill produces 31,000 tonnes of mother reels, but does not have any converting capacity.
The Chesterfield mill, which SCA acquired in 1990, uses 100-percent recycled material to produce paper, which is sent to be converted into finished products at other SCA facilities.
Sidcot Group presently operates a converting operation that produces tissue under the brand name Matryx. The company does not have a paper mill.
In a news release, SCA says the measures are being taken as part of its Tissue Road map program and are aligned with the company’s strategy to streamline production and secure capacity for future growth in the tissue sector.
Following the investment of the through air drying system, the Skelmersdale tissue plant will have a production capacity of 28,000 tonnes per day.
The closure of the older tissue machine at its Stubbins plant will remove about 20,000 tonnes of production from the market.
The sale is expected to be completed by the first quarter of this year.