SCA says to build new tissue plant in Mexico

STOCKHOLM, Sept 5 (Reuters) - Swedish hygiene and paper product maker SCA (SCAb.ST) said on Friday it would invest $240 million in a new tissue plant in Mexico.

The group, Europe's biggest manufacturer of corrugated packaging and hygiene products, said in a statement it planned for the plant to start production by end-2010.

"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," it said.

SCA said market growth in Mexico had been 4-5 percent annually in the past five years and it saw the market growing at about the same pace in the coming years.