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SCA is to buy 20 percent of the Chinese tissue company Vinda. With a market share of approximately 4 percent, Vinda is one of the four largest players in China’s tissue market.
SCA’s CEO Jan Astrom said: “Acquisition of a stake in Vinda provides a good opportunity for SCA to establish an important position in the fast-growing Chinese tissue market. We will then be part owner in a profitable and fast-growing company with modern assets and a strong brand.” The acquisition is in line with SCA’s strategy to grow in China.
The brand Vinda is seen as one of the strongest Tissue brands in China, the second largest tissue market in the world. The company has a strong position in consumer tissue, and has five production plants in China: two in Guangdong and one each in Beijing, Sichuan and Hubei.
The purchase price is set at CNY (yuan renminbi) 366 million corresponding to SEK 330 million. As a result of capacity expansion, Vinda has grown by more than 30 percent in each of the last two years and the strong growth is expected to continue.
Economic development in China is creating enormous demand for hygiene solutions in the away-from-home (AFH) market segment. SCA is off to a flying start due to the investments in improved hygiene in the service sector being made by China in connection with preparations for the 2008 Summer Olympics in Beijing and the 2010 World Expo in Shanghai. At the end of 2006, SCA announced its establishment in the Chinese market with its global Tork brand.
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