SCA Tissue Europe, Sappi Fine Paper Europe to extend joint sourcing of pulp into sourcing cooperation of chemicals, technical goods, other categories, enabling both companies to reduce cost, improve logistics

MUNICH and BRUSSELS , June 27, 2011 (press release) – SCA Tissue Europe and Sappi Fine Paper Europe (Sappi) announced today, that following the successful joint sourcing of pulp which was implemented in May 2010, they will now extend this sourcing co-operation into the areas of chemicals, technical goods and other major spend categories.

“Strengthening the Sourcing Cooperation beyond pulp brings both companies the leverage and benchmarking opportunities that we need to control and improve costs; this will certainly contribute to the efficiency and success of both the Sappi and SCA businesses” stated Mats Berencreutz, SCA’s Chief Operating Officer.

“This is an important step in the partnership with SCA. It is an opportunity for both companies to further optimise their variable costs and to counter inflationary effects” continued Berry Wiersum, Sappi Europe’s CEO.

Supply markets are changing with increasing rates of speed as is the supplier consolidation process. High growth rates in China, increasing energy costs and exchange rate fluctuations have a significant impact on price and availability of products and services.

Approaching other major spend categories as part of the Sourcing Cooperation is the strategic way forward for SCA and Sappi. It will enable both companies to cement strategic supplier partnerships by embarking on specific programs to reduce cost and working capital, improve logistics and environmental performance and to drive innovation.

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