SCA increases its ownership in Vinda
SCA is to acquire another 5 % in Chinese tissue manufacturer Vinda who recently announced plans to increase its tissue capacities by 150,000 tpy in 2012.
SCA has announced to acquire an additional 5 % of the shares in Chinese company Vinda. As a consequence, SCA will own a total of 22.6 % of the shares in the tissue manufacturer. SCA said the purchase price amounted to around SEK600m (around €67.7m). The seller in the transaction is said to be Fu An, a company majority owned by Mr Li, the Chairman of Vinda. According to SCA, the transaction is subject to receiving consent from some of Vinda’s lending banks.
Jan Johansson, CEO and President for SCA, explained that the market for tissue products in China continued to grow well and continued to consolidate with the larger players, like Vinda, growing at a significantly faster speed than the market. “We intend to be among the leading players in China and we have for this reason taken the decision to increase our ownership in Vinda”, he said.
According to SCA, Vinda is the third largest player in the China household paper industry in terms of market share and production capacity. The Chinese manufacturer has recently announced plans to significantly increase its production capacities which currently stand at 470,000 tpy. The company has ordered eight new tissue machines and intends to add a total of 150,000 tpy in tissue capacity in 2012, targeting to reach 1 million t in the coming years.