The SCA Group is to become two listed companies: the forest products company SCA and the hygiene and health company Essity.
The synergies between the two businesses have decreased over time and at the Annual General Meeting on 5 April, SCA's shareholders approved a proposal to split the SCA 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 - 2.6m hectares of forest land. 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, SCA will now have even greater opportunities to focus on developing products, services and their offering to customers.
Following the split, SCA will remain a business with considerable resources, and favourable opportunities to grow within both existing and new business areas.
John Griffiths, managing director of SCA Timber Supply UK, said: “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.”