SCA Closes Baby Diaper Business in Mexico

As part of SCA’s (Stockholm, Sweden) work with addressing weak market positions that have inadequate profitability, the Group has decided to close its baby diaper business in Mexico. Mexico is the Group’s eighth largest market, based on sales in 2015, and is highly prioritized by SCA. SCA holds leading market positions in feminine care, incontinence products, and tissue in the country.

The total costs for the closure of the business are expected to amount to approximately SEK 170 million and will be recognized as an item affecting comparability in the third quarter of 2016. Approximately SEK 20 million of these costs are expected to impact cash flow.

The baby diaper business in Mexico had net sales of approximately SEK 340 million in 2015.