Friday, August 28, 2015 1:15 pm

STOCKHOLM -- SCA announced Friday that it has decided initiate a dividing of the group into two divisions: a Hygiene division and a Forest Products division. In relation to the Forest Products division, all forest industry and forest land currently owned by SCA will be merged into one division, the company said.

"SCA is a global hygiene and forest products company in which we work continuously to enhance the respective operations. The enhancement of the organization and the investment in increased pulp production will secure the long-term competitiveness of the businesses," said Magnus Groth, President and CEO of SCA.

The Forest Products division will encompass all forest industry operations and all forest land currently owned by SCA. The work to realize this consolidation will now begin. There are significant synergies between the forest industry and the ownership of forest land.

SCA's forest products operation has a well-integrated supply chain with production facilities concentrated in Northern Sweden in close proximity to its forest holdings.

As of January 1, 2017, the Forest Products division will expand its quarterly financial reporting.