STOCKHOLM, Oct. 28, 2013 (Press Release) - The company will focus its production capacity in the mills of Allo (Navarre) and Valls (Tarragona), the best suited mills for this purpose.
This process will mean the transfer of the converting production from the SCA mills located in Carmona and Mediona to Allo.
The company has started negotiations with the workers representatives in order to minimize the impact on the employees.
SCA has announced the intention to focus its production in Spain in two primary plants: Valls (Tarragona) and Allo (Navarre). This proposal aims to secure short term and long term competitiveness and to set the grounds for the future growth. Both are the best suited mills due to technical standards, have the best geographical location and allow SCA the possibility to growth the plants in the future.
As a result, SCA's intention is to close Carmona, affecting 24 employees, and to transfer its converting production to Allo. In addition, the converting from Mediona shall be transferred to Allo, while the paper making production will remain. Converting production in Mediona is not economically viable, due to high production costs and its inadequacy to grow. Carmona is not efficient since Allo's converting capacity is significantly underused.
José Ramón Iracheta, SCA Spain Country Manager, comments: "We are consulting fully with our employees and its representatives to guarantee the best possible outcome. Part of the consultation process will explore potential opportunities in other SCA sites and outline outplacement support avaiable."
"We are fully aware of the impact that this decision will have on our employees at Mediona and Carmona. This is not a measure we have undertaken lightly; on the contrary, it follows a thorough analysis and consideration of the best possible way to secure our business continuity and future in Spain. We are confident that this process will allow us to strengthen our business here in Spain," adds José Ramón Iracheta.
The period of consultation will be for a maximum of 50 days to give all employees' the opportunity to ask questions and contribute views.