The SCA Group is to become two listed companies: the forest products company SCA and the hygiene and health company Essity.
The company was founded in 1929 as a forest products company operating in Sweden. Over the years the company has developed its business towards more and more value-added products, such as wood products for specific applications, paper for packaging and print, renewable energy but also hygiene products. Today the company is a global hygiene and forest products company with about 50,000 employees and sales in more than 100 countries.
The synergies between the two businesses have decreased over time and at the Annual General Meeting on 5th April, SCA’s shareholders approved a proposal to split the Group into two listed companies, a hygiene company and a forest products company.
Forest Products will retain the SCA name and will continue to manage and develop this brand. The company will include all of SCA’s forestry and forest industry assets, such as SCA Timber Supply UK, and all the products, employees and other values connected with these. The split of the company will be carried out at a suitable time following completion of the listing process, but no later than in the second half of 2017.
The core of the forest products operations is SCA’s vast forest holdings in Northern Sweden, 2.6 million hectares of forest land, almost the area of Belgium. Based on this unique resource, SCA has developed a well-invested industry, designed to bring the highest possible value from the forest.
As an independent forest products company, it will now have even greater opportunities to focus on developing products, services and their offering to customers.
Following the split, it will remain a business with considerable resources, and favourable opportunities to grow within both existing and new business areas. The company will continue to develop relationships and business with their customers.
“I am pleased that the shareholders support the Board’s proposal regarding two separate listed companies. This will increase value for shareholders in the long-term through increased focus, customer value, development opportunities and enables each company to successfully realise its strategies. We look forward to an exciting future for our two strong listed companies,” says John Griffiths, Managing Director of SCA Timber Supply UK.