SCA has long commanded a position as one of Europe’s most profitable producers of forest products based on its in-depth consumer and customer insight, high innovative ability, efficient production, high value-added products, integration with SCA’s own wood raw material and a sustainability perspective at all levels.
SCA specialises in the prime quality segments in magazine paper – SC and LWC paper. These paper grades are used for magazines, catalogues and advanced printed advertising, which are all areas that offer favourable long-term global growth. This focus on quality segments is supported by the company’s in-depth knowledge of pulp production, as well as its capacity for innovation and ability to select the right raw materials for specific pulp and paper grades.
Processed and customised solid wood products
In the solid-wood products area, the strategy is to move towards more processed and customised products in markets that offer long-term growth. SCA’s own raw materials, production and logistics expertise, and closer cooperation with customers, generate competitive advantages. SCA is a qualified supplier of purpose-designed wood products to industry for further processing into such items as panels, floors, windows, doors and furniture. Finished-wood components for window manufacturing, for example, represent another growth market. Products for the “do-it-yourself” markets are delivered planed and pre-packaged. Service and advanced logistics solu¬tions are of key significance for the building materials trade.
SCA works in close cooperation with its customers in its principal markets in Scandinavia, France and the UK. In the eastern US and Japan, SCA is a specialised supplier within several niche markets.
Integration with own wood raw material
Integration of SCA’s own wood raw material is a key aspect of the company’s strategy that contributes to stable cash flow and reliable supplies, and facilitates quality and cost control. SCA’s forest holdings are becoming increasingly important as competition for timber raw material in northern Europe intensifies and demand for biomass from the energy sector grows. Having its own logistics is part of the company’s integration strategy, with loading and unloading terminals in Sweden and on the continent and transports on environmentally sound vessels.
SCA’s forest assets are located in northern Sweden, where the Group has built up an efficient supply system for its own mills and sawmills. The company’s forest holdings are managed on a very long-term basis.
Intensive programmes
"Intensive programmes aimed at enhancing profitability continue."
Intensive programmes aimed at enhancing profitability continue. Forest Products’ relatively strong position offers the potential to win market shares in a weak market. Long-term competitiveness is also favoured by access to the Group’s own wood raw material and SCA’s environmental profile. Innovation and product development will continue, with the focus on further processing, customisation in segments with favourable price trends and growth to gain higher profitability. Forest holdings, in-house energy supplies and the focus on biofuel make up the basis for continuing sustainability programmes.
Efforts are continuing with a view to realising SCA’s wind power venture via the agreement with the Norwegian energy company, Statkraft, in 2007, which involves 450 wind turbines on SCA’s land, offering a power capacity of 2,400 GWh annually.