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Forestry Company SCA, to cut hundreds jobs as it restructure its business while also making some investment

Wednesday, 19 December 2012
Cost-cutting of approximately 200 people involved in Forestry Company SCA will occur as cut down in it their activities start taking a bite. But the company also wants to invest in its energy sector in Sweden

Forest Company SCA will streamline its forest operations in the coming months and years, as such its workforce must be reduced.

Jessica Ölvestad, Press Secretary of SCA told Swedish television that the company is making very weak profit as the economies continue to weaken pushing growth in uncertainty in their the business.

In a press release, SCA writes that "Against the backdrop of the prevailing economic and currency situation, SCA is introducing a comprehensive program to enhance the efficiency of its forest products operation. The program will generate annual earnings improvements of Skr1,300 million with full effect from 2015.
These include the previously announced closure of sawmills in Vilhelmina and Holmsund and cutbacks in Ortviken, the SCA Transforest terminals in Sundsvall and Umeå and at SCA's research and development centre.

SCA also announced that it is divesting its Austrian publication paper mill in Laakirchen to Heinzel Group. In conjunction with the divestment, SCA and Heinzel Group have concluded a sales cooperation agreement, according to this press release.

On teh brighter side, SCA has approved an investment of approximately Skr 380million in expanded cooperation between SCA’s industries in the Sundsvall region and Sundsvall Energi AB. The agreement will enable SCA to increase its deliveries of energy to Sundsvall’s district heating grid, the company said in a statement.
by Scancomark.com Team

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