SCA to sell two tissue paper mills in Bridgend, Wales, and Drammen, Norway, with 100,000 tonnes/year combined capacity, and a tissue converting plant in Horwich, England, to meet EU requirements on takeover of GP's European tissue unit

LOS ANGELES , August 10, 2012 () –

Svenska Cellulosa Aktiebolaget (SCA) announced it will sell two tissue paper mills and one tissue converting operation to meet the European Union’s (EU) requirements related to SCA’s takeover of Georgia-Pacific LLC’s (GP) European tissue unit, reported EUWID-Paper on Aug. 10.

The Swedish papermaking giant said it will divest tissue paper mills in Bridgend, Wales, and Drammen, Norway, which have a combined capacity of 100,000 tonnes per year and sales of approximately €200 million (US$245.9 million).

It will also sell its tissue converting plant in Horwich, England, the company said when it recently provided the details of its divestiture plans, which it expects to complete within the EU-imposed timeframe of six months.

So far, the sites that are slated to be sold have drawn interest from industrial buyers, private-equity firms or financial investors, said Jan Johansson, CEO and president of SCA, which is based in Stockholm, Sweden, EUWID-Paper reported.

The EU is requiring that SCA divest GP´s consumer tissue business in the U.K., GP’s Benelux consumer tissue business under the Lotus brand, and some of GP´s and SCA`s retailer-branded business in Scandinavia, according to a July 5 press release that IndustryIntel.com carried the same day.

The primary source of this article is EUWID-Paper, Gernsbach, Germany, on Aug. 10, 2012.

 

* All content is copyrighted by Industry Intelligence, or the original respective author or source. You may not recirculate, redistrubte or publish the analysis and presentation included in the service without Industry Intelligence's prior written consent. Please review our terms of use.