SCA to Invest USD 240 Million in Mexico

STOCKHOLM, Sweden--(Business Wire)--
Regulatory News:

In a move to improve its offering to consumers, while at the same
time strengthening competitiveness and profitability, SCA
(STO:SCAA)(STO:SCAB) is investing in a new tissue plant in Mexico.

"This is a strategically important investment. The plant, which
will be located near the key markets in and around Mexico City, will
be integrated and highly efficient," says SCA's President and CEO Jan
Johansson. "It will provide us the opportunity to enhance product
quality and thereby improve our profitability and our offering to
consumers."

Mexico has a stable economy, with a rapidly growing middle-class,
low inflation and robust economic growth. Mexico is one of the paper
and hygiene group SCA's identified growth markets.

Currently, SCA's sales of hygiene products in Mexico and Central
America total SEK 2,910m (USD 458m), of which about two thirds is
attributable to tissue. The tissue market in Mexico is well
consolidated and SCA is currently second, with a market share of 18%.
Producer brands, including SCA's, are totally dominant on the Mexican
convenience goods market.

"Market growth in Mexico has been 4-5% annually during the past
five years and our assessment is that the market will grow
approximately the same in the immediate years ahead," says Jan
Johansson.

Nearly 30 years ago, SCA formed a joint-venture company for
hygiene products in Mexico. Jointly with the local company Copamex, a
successful business was developed in personal care hygiene products.
In 2004, SCA bought out Copamex from the joint-venture company and at
the same time, SCA had the opportunity to acquire 50% of Copamex's
tissue operations, which shortly thereafter became a 100% acquisition.

The new investment is strategically important to advance positions
with regards to profitability and customer offering.

In a first phase, a tissue machine will be built for dry crepe
production, with a capacity of 60,000 tons per year. The project also
comprises a recycled fiber plant, a converting hall with three lines
for toilet paper as well as a distribution center. The start-up is
planned for end of 2010. The investment amount is SEK 1,525 billion
(USD 240 M).

Stockholm, 5 September 2008

NB This information is such that SCA must disclose in accordance
with the Securities Markets Act.

SCA is a global consumer goods and paper company that develops and
produces personal care products, tissue, packaging solutions,
publication papers and solid-wood products. Sales are conducted in
some 90 countries. SCA has many well-known brands, including the
global brands Tena and Tork. Sales in 2007 amounted to SEK 106 billion
(EUR 11.4 billion). SCA has approximately 50,000 employees. More
information at www.sca.com

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SCA
Par Altan, VP Media Relations
+46 8 788 52 37
or
Johan Karlsson, VP Investor Relations
+46 8 788 51 30

Copyright Business Wire 2008