SPAIN -- SCA announced that it will close its tissue production plant in Sant Joan de Mediona, Spain.

SCA said the decision is aligned with the company's strategy to optimize its geographic production footprint in order to drive cost and capital efficiency and further increase value creation in Tissue. SCA added it remains fully committed to the Spanish market, which is the Group's sixth largest market based on sales in 2015.

The production plant has an annual capacity of 45,000 tons. Production will be discontinued in July 2016.

The restructuring costs for the closure of the production plant are expected to amount to approximately SEK 230m and will be recognized as an item affecting comparability in the second quarter of 2016. Of the restructuring costs, approximately SEK 140m is expected to be recognized as an impairment loss.