SCA increases sawmill operations.

SCA, Stockholm, Sweden, will acquire the sawmill operations of Scaninge, an SCA subsidiary. SCA will pay SEK 270 million (US$ 30.9 million) for the tour sawmills located at Bollsta, Vilhelmina, Rundvik, and Graningebruk. Originally, SCA had 41% ownership interest in Scaninge, but that increased to 59% in May 2001. The voting rights in the company have been equally distributed between Graninge and SCA. After the acquisition, SCA's sawmill capacity will amount to 1.4 million cubic meters. SCA intends to retain its holding in Scaninge, whose future activities will only concern forestry operations.

In other SCA news: The company will invest in its corrugated board plant in Minden, Germany, to increase productivity by installing a new corrugated board machine, new converting equipment, and making changes that produce a more efficient product flow through the plant. The plant produces 110 million square meters of corrugated packaging annually. The changes make the operation a large packaging unit of SCA.

SCA Tissue North America has ordered a wet-crepe tissue process line from Voith Andritz Tissue, Janesville, Wisconsin, USA. This machine will be installed at SCA's greenfield tissue papermaking, converting, and distribution center near Florence, Alabama. Construction began in December; the tissue process line will be operational in mid-2004.