30 April 2009

SCA TO CUT JOBS

SCA is to cut 2,200 job, about 14% of its workforce, in an effort to stem losses

According to SCA, demand in Europe has fallen by 10% and the industry is struggling with high producer inventories and pressure on both liner and corrugated board prices.

The cost savings program includes:

• Bringing forward the closure of the New Hythe mill in the UK to mid-2009
  
• Closure of 11 corrugated board plants in Europe
  
• Rationalization of units and workforce, in total 2,200 employees in Europe, of which 120 in Sweden, corresponds to 14% of the workforce.

In addition to the actions above, SCA said it is reducing production for linerboard amounting to 160,000 tons during the first two quarters of this year.