The ability to understand the future demands of consumers and customers is a fundamental strategy for the creation of lasting value for all stakeholders. SCA intends to increase investments in insight, innovation and product development, with a focus on functionality, strength, softness, design and service concept.
In recent years, a large number of new and upgraded products have been launched and the service level enhanced. The integration of previous corporate acquisitions has permitted a continuing rationalisation of the European tissue operations, with the concentration of production to well-positioned and efficient facilities. New investments in Mexico and Russia, for example, will improve profitability and efficiency.
In the AFH segment, SCA delivers complete hygiene concepts to institutions and companies. These include tissue products for various models of dispensers, as well as soap and services. SCA has a global strategy and a global brand platform – Tork. This provides significant synergies, since there is little difference in consumer and customer preferences with regard to paper and dispenser systems in different parts of the world. SCA focuses on consumer and customer insight to enhance business benefits through a high level of satisfied customers. These are active in such areas as healthcare, industry, offices, hotels and restaurants. Products are distributed via wholesalers and service companies.
"SCA’s target is to strengthen brand positions in the mature European markets."
SCA offers retailers a complete range of products in the highest quality segments under SCA’s proprietary brands and high-quality products for retailers’ brands. SCA’s target is to strengthen brand positions in the mature European markets, while maintaining the important market for retailers’ brands. The rapidly expanding markets in Eastern Europe are strongly brand defined. SCA focuses on capitalising on the opportunities in prioritised emerging markets and is market leader in such countries as Russia and Colombia.
For a number of years, SCA has been working with a full-service offering that includes production and delivery, as well as service cooperation for product development, product range, design, marketing and logistics. This service concept has been well received by the leading European retail chains.
Production and business processes
The integration of the European tissue operation acquired by SCA is continuing on schedule. Manufacturing and logistics are enhanced through the relocation of production and investments in more efficient facilities, combined with the discontinuation of unprofitable capacity.
Outlook
Intensive programmes designed to restore profitability are continuing with undiminished vigour. High priority is devoted to pricing programmes, at the same time as SCA intends to increase its innovation rate and further strengthen its production structure and customer service. The potential for continuing growth in consumer tissue is favourable, especially in emerging markets. The market trend for the AFH segment is deemed stable.