Actions include the previously announced closures of the sawmills in Vilhelmina and Holmsund, and cutbacks at Ortviken paper mill, SCA Transforest’s terminals in Sundsvall and Umeå, and at SCA’s R&D Center. About 200 positions are affected, the majority of which have already been announced.

The total cost of the program is SEK 370 million, of which SEK 250 million is cash flow impacting and SEK 120 million comprises impairment losses. Of the total costs, SEK 175 million will be charged to profit for the fourth quarter and will be recognized as items affecting comparability. The remaining SEK 195 million will be charged to profit for the first six months of 2013.

The program includes a structured plan to reduce fixed and variable costs, income improvements by way of increased production and streamlining activities, and a changed product and market mix. This will be achieved through improved raw material yield at the sawmills, higher productivity in harvesting activities, an increased share of value-added publication papers and a larger share of container transportation.