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SCA to close US tissue production plant

Swedish consumer goods company Svenska Cellulosa Aktiebolaget SCA on June 7 said it will shut down its U.S.-based tissue production plant located in Flagstaff, Ariz., in June.

The Flagstaff plant has an annual production capacity of 55,000 tons and is a part of the household products company's professional hygiene business unit.

The move will help improve efficiency of SCA's professional hygiene business in North America, according to the company. The closure also aims to improve the household products company's geographic production footprint to have a positive impact on its cost and capital efficiency.

The cost for the closure is expected to be about 250 million Swedish kronor, and about 40 million Swedish kronor included in this cost is expected to impact cash flow.

As of June 7, US$1 was equivalent to 8.69 Swedish kronor.