A new tissue plant is to be built in Mexico by SCA at a cost of US$240M (SEK1.525B). The country is one of the growth markets identified by the Swedish paper and hygiene group.
In a first phase, a tissue machine will be built for dry crepe production, with an annual capacity of 60,000 t. The project also comprises a recycled fibre plant, a converting hall with three lines for toilet paper and a distribution centre. Start-up is planned for the end of 2010.
“This is a strategically important investmen,” says SCA president and CEO Jan Johansson. “The plant, which will be located near the key markets in and around Mexico City, will be integrated and highly efficient. Market growth in Mexico has been 4-5 per cent annually during the past five years and our assessment is that the market will grow approximately the same in the immediate years ahead.”
Currently, the group’s sales of hygiene products in Mexico and Central America total US$ 458M (SEK2,910M), 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 per cent.
Nearly 30 years ago, SCA formed a joint venture company for hygiene products with Mexican company Copamex. In 2004, it bought out Copamex from the joint venture and acquired 50 per cent of that company’s tissue operations, which shortly thereafter became a 100 per cent acquisition.
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