In a move to improve its offering to consumers, while at the same time strengthening competitiveness and profitability, SCA decided to invest in a new tissue plant in Mexico.
The plant, which will be located near the key markets in and around Mexico City, will be integrated and highly efficient and will provide the company with a good opportunity to enhance product quality and thereby improve SCA’s profitability and offering to consumers.
Mexico has a stable economy, with a rapidly growing middle-class, low inflation and robust economic growth. Mexico is one of SCA’s identified growth markets. Currently, SCA’s sales of hygiene products in Mexico and Central America total SEK 2,900m (USD 458m), of which about two thirds is attributable to tissue. The tissue market in Mexico is well consolidated and SCA is currently second, with a market share of 18%. Producer brands, including SCA’s, are totally dominant on the Mexican convenience goods market.
In a first phase, a tissue machine will be built with a capacity of 60,000 tonnes per year. The project also comprises a recycled fibre plant, a converting hall with three converting lines for toilet paper as well as a distribution center. The investment amount is estimated at SEK 1,525m.
To press release