SCA expands eastwards

2 May 2007


SCA is investing in packaging on a broad front in Eastern Europe and China. The Swedish group is expanding two plants in Poland and one in Romania, and building two new corrugated board plants in China.

The investments in Poland are being made in Poznan and Olawa, with approximately €7M in each plant. In Poznan, spend includes a design centre for printing and laminating with a focus on consumer packaging and displays. In Olawa, where corrugated board is produced, the operations will be expanded to benefit from the fast growing Polish market. The projects are scheduled for completion at the end of the second quarter of 2007.

In Timisoara, in eastern Rumania, SCA is investing €10M to upgrade the existing box plant to a fully integrated corrugated board operation. This investment is part of the development of customer support throughout the region, including other plants in Rumania, as well as the design centre in Budapest and sales and production in Hungary. The plant will be ready in 2008.

SCA's packaging operations in Nanjing, China, will be moved to a new factory, to facilitate continued volume growth. The new 30,000m2 building will house all the machinery and equipment transferred from the old facility. This investment will amount to approximately $12M.

A new packaging plant in Suzhou, near Shanghai, was inaugurated last month. This $20M investment is the largest made by SCA in China so far. With production of corrugated board, litho print and protective packaging all under one roof, the plant will function as a one-stop centre for customers.



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