SCA Group says its newly-launched “efficiency improvement” programme will not greatly affect its forest products business.
The programme, to be fully implemented by 2007, will affect 3,600 workers and is expected to result in annual savings of SKr1.55bn.
SCA Forest Products will not be subject to any extensive restructuring despite “unsatisfactory profitability”. But it does plan to speed up its efficiency improvements.
A spokesperson for the division said: “We hope to be able to continue to carry out this in a continuous process and avoid drastic measures. This can only be assured, however, through profitable and successful business.”
SCA Forest Products said it had not been involved in acquisitions to the same extent as SCA’s other business groups and has been able to focus on the development of efficient mill sites and a competitive business.
Since the division was formed in 1999, employee numbers have been reduced by almost 1,000, while production has grown by more than 25%.
SCA Group’s efficiency improvement programme is mainly affecting its hygiene products and packaging businesses.
