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Swedish paper group SCA in record profit leap

The Swedish paper group Svenska Cellulosa (SCA) posted on Thursday a nine-fold jump in net profit for 2012 owing to a one-off asset sale made as the company turns its focus to Asia in general and hygiene products in particular.

Swedish paper group SCA in record profit leap

SCA reported 2012 net profit of 4.956 billion kronor ($760 million), up from 551 million kronor in 2011 owing to the sale of its packaging unit to the British group DS Smith for 1.6 billion euros.

SCA’s 2012 sales gained 5 percent when calculated with a constant exchange rate, to 85.408 billion kronor.

Meanwhile, the Swedish company has acquired European activities from US group Georgia-Pacific that include the Lotus handkerchief brand.

That deal underpinned “our competitive strength in the European tissue market and complements our market positions,” SCA president and chief executive Jan Johansson said in a statement.

SCA will focus now on increasing its presence in Asia, via the acquisition of Everbeauty, a Taiwanese company that sells hygiene products in China, Taiwan and Southeast Asia, the statement said.

AFP/The Local/og

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PAPER

Swedish paper group SCA ready to expand

Swedish paper group Svenska Cellulosa (SCA) said on Wednesday that it was geared to make acquisitions in emerging economies such as Latin America, Eastern Europe and Eurasia.

Swedish paper group SCA ready to expand
   
"We definitely have room to invest several billion kronor when the right opportunity arises and we're constantly looking," chief executive Jan Johansson told financial daily Dagens Industri.
   
"We are going to become even more important in the hygiene sector and are interested in acquisitions in, for example, Latin America, in certain regions of Eastern Europe and Eurasia, like Turkey."
   
The company is growing in the hygiene sector while its traditional products – print and packaging paper, paper pulp and energy – face difficulties.    
 
At the end of 2013, SCA became the majority shareholder of Chinese Vinda, the third largest tissue maker in the Asian country.
  
During the last two years, SCA has bought and sold companies worth a total of 37 billion kronor ($5.74 billion), Johansson said.
   
"It's really essential to be able to accelerate and brake at the same time," he added.
   
"Guaranteeing synergies after an acquisition and lowering the costs of our operations are also a determining key for success."
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