Displaying items by tag: sca
SCA and the textile recycling company Renewcell have signed an agreement for Renewcell to establish textile recycling at SCA’s industrial site Ortviken in Sundsvall. The operation is expected to create one hundred new jobs.
“We are glad that Renewcell chooses Ortviken as the site for this investment”, says Ulf Larsson, SCA’s President. “We know that Ortviken is a very attractive industrial site with excellent infrastructure, including first class logistic solutions.”
SCA will discontinue the production of publication paper at Ortviken and will thereafter make room for Renewcell’s operations, where one of SCA’s paper machines is currently located. SCA has also started the investment to produce chemically pretreated thermomechanical pulp, CTMP, on the site.
SCA will rent out the space for Renewcell’s operations and will supply utilities such as steam, water treatment and other services.
SCA has decided to discontinue the production of publication paper and to invest SEK 1,45bn in the production of chemically pre-treated thermo-mechanical pulp (CTMP) at the Ortviken industrial site in Sundsvall. The decision has been preceded by consultations with employee representatives.
The proposed restructuring plan for Ortviken paper mill was announced on August 26. Following the conclusion of negotiations with employee representatives regarding the closure of publication paper production, consultations will now commence regarding the consequences of this closure for the employees. Approximately 800 employees are affected, most of whom are located at the Ortviken paper mill.
“Publication paper is a product with a declining market and we now entirely leave this product area, this enables us to focus on products with healthy growth and good prospects for the future,” says Ulf Larsson, SCA’s CEO. “The plans we are now carrying out will have significant impact and now, together with representatives of our employees, we will seek the best possible solutions for those affected.”
SCA intends to invest SEK 1,45bn in the production of chemically pre-treated thermo-mechanical pulp (CTMP) at the Ortviken paper mill in Sundsvall. In parallel, SCA is initiating consultations with trade unions and employee representatives to discontinue the production of publication paper at the mill.
SCA intends to invest to achieve an annual production volume of 300,000 tonnes of CTMP pulp at Ortviken, using the existing infrastructure. The investment is expected to give a positive EBITDA-effect of approximately SEK 0.3bn per annum. Expected start of production in the new mill is the beginning of 2023. SCA today has a production capacity of 100,000 tonnes of CTMP pulp at the Östrand pulp mill. This production will be phased out when the new line starts up, which will allow a future increase in the production of kraft pulp at Östrand Pulp mill.
“Our pulp customers want us to grow with them in product segments such as packaging board and hygiene products, segments with healthy growth,” says Ulf Larsson, SCA’s CEO. “In line with our strategy, we have gradually reduced our exposure to publication paper. We now initiate negotiations to leave this product segment completely.”
Currently, SCA produces coated and uncoated publication paper on three paper machines at Ortviken paper mill with annual sales of approximately SEK 4bn. Demand for publication paper in Western Europe has declined by approximately 5% per year since 2008. During the coronavirus pandemic, demand for publication paper decreased by a further 30-40% and production at Ortviken paper mill has been adapted to the weak order level. This low demand, combined with a weak price development, results in a negative profitability for the operation.
The closure of publication paper manufacturing at Ortviken paper mill proposed by SCA will affect about 800 employees, primarily at Ortviken paper mill, but also in other parts of SCA’s operations. The closure would result in non-recurrent costs with cashflow effects which are estimated not to exceed SEK 0.9bn and an impairment of about SEK 1.1bn.
“Through today’s proposals, we intend to continue to develop a strong, sustainable and profitable industry based on our renewable forest raw materials”, says Ulf Larsson. “This will have a significant impact on many people and we will in a responsible way seek the best possible solutions for those affected.”
Negotiations under the Co-determination at Work Act (MBL) with trade unions will now begin regarding the plans to discontinue paper production at Ortviken paper mill, the investment in CTMP production at Ortviken and the impact on other SCA operations. In other jurisdictions affexcted employees and their representatives will be informed and consulted in line with the legal framework.
SCA has confirmed a new harvesting plan which shows that the harvesting level in the own forest will increase over the coming five years by an additional one million cubic meters per year more than the current level. The increased harvesting level gives an increased cash flow of 300-400 MSEK per year with full effect from 2025.
In 2019, SCA made a new forest survey which showed that the company’s forests had a higher standing volume and a higher growth rate than previously estimated. A higher growth rate gives higher long term harvesting potential.
The new harvesting plan is now confirmed and it is based on calculations of the development of the forest over more than one hundred years into the future. It shows that harvesting over the coming five year period can successively increase from todays level of 4.3 million cubics meter solid wood under bark (m3sub) to 5.4 million m3sub per year.
In order to avoid conflicts of interest, Lotta Lyrå has decided to resign from SCA’s Board of Directors with immediate effect.
“We thank Lotta Lyrå for valuable contributions to the company”, says Pär Boman, Chairman of SCA’s Board of Directors.
For further information, please contact:
Björn Lyngfelt, Senior Vice President, Communications, tel +46 60 19 34 98
Katarina Nilsson, General Counsel and Secretary to the Board, tel +46 60 19 31 29
The core of SCA’s business is the forest, Europe’s largest private forest holding. Around this unique resource, we have built a well-developed value chain based on renewable raw material from our own and others’ forests.
We offer paper for packaging and print, pulp, wood products, renewable energy, services for forest owners and efficient transport solutions. In 2019, the forest products company SCA had approximately 4,000 employees and sales amounted to approximately SEK 19.6bn (EUR 1.9bn). SCA was founded in 1929 and has its headquarters in Sundsvall, Sweden. For more information, visit www.sca.com
The new paper machine at the Obbola paper mill in Umeå, Sweden, will produce 725,000 tons of kraftliner per year. With a wire width of 10,200 mm and a design speed of 1,400 m/min, the PM 2 will be the most productive of its kind. The start-up of the machine is scheduled for the first quarter of 2023.
- Comprehensive project scope including BlueLine stock preparation system, XcelLine paper machine, long-term efficiency agreement and the Voith Process Line Package (PLP)
- Most innovative Papermaking 4.0 concept to increase efficiency, product quality and machine availability
- Excellent mechanical properties through a customized concept with intelligent controls
Taking full responsibility for the entire papermaking process and project handling
As full-line supplier for the entire papermaking process, Voith follows the Process Line Package (PLP) concept approach and assumes comprehensive responsibility for the project, covering the BlueLine stock preparation system and XcelLine paper machine. The comprehensive product scope includes detailed engineering and the supply of all sub-systems and components for the process line. The PLP reduces the number of required interfaces and contact persons and simplifies the entire project handling.
Highlights of the OCC plant include the IntensaPulper, the industry benchmark for energy efficient pulping, and the maintenance free Bagless Disc Filters. The production line will enable industry benchmarks in kraftliner strength and convertibility to be achieved through a unique combination of proven components and intelligent controls. The multi-ply forming section with the DuoFormer Base and the MasterJet Pro headbox are tools for the online control of critical product quality criteria. The well-proven TripleNipcoFlex press section has been adapted for the production of kraftliner in order to achieve the highest production rates and surface quality levels. The CombiDuoRun dryer section, including EvoDry steel dryers and an intelligent S&C system, will ensure maximum runnability and energy efficiency. The VariFlex Performance winder incorporating SmoothRun technology will provide consistent quality rolls at maximum operational efficiency.
Long-term efficiency agreement
The long-term efficiency and service agreement will start right away. With digital applications on the existing PM 1 and a full-scale training program for the paper mill team supported by the Voith learning platform DRIVE as well as on-site services and trainings, a smooth start-up of PM 2 will be assured. The PM 2 will then be embedded in an extensive preventive maintenance program and efficiency optimization strategy for highest productivity of the production line.
“We know about the growing market for paper-based packaging. Our intention is to enable our customer to achieve excellent mechanical properties through a customized concept with intelligent controls,” states Christoph Mueller-Mederer, President, Projects EMEA at Voith. “The order from SCA means for us to provide the whole package consisting of safety, service, quality and efficiency partnership as well as to take full responsibility for the process line.”
Setting standards with digitalization and innovation
The scope of supply for SCA includes the biggest and most innovative package in Voith Paper history and sets a benchmark in digitalization. The Papermaking 4.0 technologies cover products of the OnEfficiency product family, which use machine learning to increase the efficiency of the plant. Furthermore, it stabilizes and improves product and process quality. The OnCare products – with monitoring applications as well as digital services like OnCall Video and the connectivity to the Voith Paper Webshop – complement the OnCumulus IIoT platform product portfolio and provide the foundation for a digital integration of the value chain and predictive maintenance. The new paper machine thereby benefits from the full digitalization scope.
“The market’s most advanced kraftliner machine PM 2 with the best available technology will considerably improve the mill’s competitiveness, cost position and product quality,” says Mats Nordlander, President, Paper of SCA. “We see the partnership with Voith as the next step of our digitalized future.”
About the Voith Group
The Voith Group is a global technology company. With its broad portfolio of systems, products, services and digital applications, Voith sets standards in the markets of energy, oil & gas, paper, raw materials and transport & automotive. Founded in 1867, the company today has more than 19,000 employees, sales of € 4.2 billion and locations in over 60 countries worldwide and is thus one of the large family-owned companies in Europe.
The Group Division Voith Paper is part of the Voith Group. As the full-line supplier to the paper industry, it provides the largest range of technologies, services, components and products on the market and offers paper manufacturers solutions from one single source. The company’s continuous stream of innovations takes papermaking to the next level and facilitates resource-conserving production. With its Servolution concept, Voith offers its customers tailored service solutions for all sections of the production process. Voith Papermaking 4.0 ensures that equipment is optimally connected, while the secure use of generated data enables paper manufacturers to improve plant availability and efficiency.
Leading papermaker SCA Graphic Paper has created a brand-new paper category for graphical printers: Fine Wood-Containing Paper (FWP) narrows the gap between woodfree and wood-containing offset papers as never before.
Leading the way in this innovative new segment is Frontier, a high bulk, high opacity offset paper with a premium feel ideal for magazines, supplements, direct mail, puzzle books and notebooks.
Frontier is being launched in the UK in partnership with Vision Paper and Board in 70, 75 and 80gsm weights and is available as part of their Your Size Bespoke sheeting service.
Peter Featherstone, Sales Office Manager for Vision Paper and Board, says: “SCA Frontier is an exciting new type of paper, the brightest wood-containing offset paper in the world. And with the lower substance range, combined with high bulk and opacity, printers can reduce their costs through improved yield without sacrificing the quality of their product.”
Neil Coleman, Sales Manager for SCA Graphic Paper UK, agrees. “Our new FWP paper category is an ambitious one,” he states, “It’s a category that challenges accepted industry norms when it comes to what a wood-containing paper can be and can achieve. Printers or publishers want their magazines, supplements and catalogues to be just a bit more special and SCA Frontier is the ideal choice for this.”
With an ISO brightness of 86% and a CIE whiteness of 105%, the difference between a wood-containing and a woodfree offset has never been so slight, and the high bulk and opacity associated with this type of pulp contributes to the premium quality of the grade.
SCA Frontier is available for mill direct sales in reels, or from Vision Paper and Board in both sheets and reels. Neil Coleman explains the partnership decision: “We chose to work with Vision Paper because of their ability to produce sheets in a wide range of sizes to tight deadlines. With 3 versatile sheeters at their disposal, as well as reel rewinding capability, we are confident of their ability to help us develop this exciting new grade in the UK market.”
Peter Featherstone confirms: “SCA are a leading paper producer, and Europe’s largest private forestry owner, but, despite their size, they are still ready to innovate and are not afraid to shake up existing perceptions of how paper should be. We are delighted to be associated with this project and relish the opportunity to develop sales of the world’s brightest wood-containing offset paper.”
To accompany the launch of SCA Frontier, a full colour brochure has been produced on the paper to highlight the outstanding results that can be achieved. Copies are available on request from Vision Paper and Board.
The Snowy Owl
The unique Snowy Owl (Bubo scandiacus, sometimes Nyctea scandiaca) has more bulk and is whiter than most birds – and all other owls. Its natural habitat is in the northern Arctic tundra regions of North America, Russia and Northern Europe.
About SCA Graphic Paper
- SCA is Europe’s largest private forestry owner with over 2 million hectares of forest
- SCA Ortviken paper mill in Sweden produces around 775,000 tpa and employs in excess of 600 people
- Ortviken mill has FSC and PEFC chain of custody certification as well EU Ecolabel
- The mill uses biofuel instead of oil and self generates around 50% of the electricity is uses.
About Vision Paper and Board
- Vision Paper and board is the UK’s leading merchant-converter, established for 10 years with annual sales in excess of 85,000 tonnes and part of the £80M turnover Middleton Group employing over 300 people.
- Converting equipment includes 4 sheet cutters; a mill winder and guillotining facilities to enable a 24-48 hour express conversion service incorporating bespoke size availability to provide significant cost and waste savings.
- Vision Paper and Board have made significant investment in their conversion and storage facility in the Midlands and can offer product availability from 20,000 tonnes of UK held graphical paper, board and packaging board comprising flat sheets, cutter reels, HSWO and cut-star reels. A varied customer base includes; commercial print, publishing, print management and the graphical and packaging board sectors, as well as business papers to stationers, wholesalers and education authorities.
- Vision Paper and Board recognises its responsibility towards protecting the environment and has achieved the internationally recognised FSC® and PEFCTM chain of custody certification.
About Tangent Paper Services
Tangent Paper Services offers technical and PR solutions to the paper industry, with customers including paper merchants and mill sales offices. We also offer freelance copywriting services to paper and printing trade magazines and will accept commissions for articles and features.
SCA to build a new paper machine for the production of kraftliner at its Obbola paper mill in Umeå. The annual production in Obbola will increase from the current 450,000 tonnes of kraftliner to 725,000 tonnes to meet the growing demand for renewable packaging. The investment amount is SEK 7.5 billion.
SCA produces kraftliner – paper for transport packaging – at the paper mills in Obbola (Umeå) and Munksund (Piteå). SCA has today decided to invest to increase kraftliner capacity to 725,000 tonnes of kraftliner per year, an increase of 275,000 tonnes. The new paper machine will start operation in the first quarter of 2023.
The total investment amounts to SEK 7.5 billion over a five-year period. The investment replaces necessary reinvestments in Obbola of approximately SEK 2.5 billion. The investment will be mainly financed by operating cash flow, complemented by regular group financing acitivities.
In addition to the Obbola paper mill, SCA also produces kraftliner at Munksund paper mill in Piteå. Over the past twelve months SCA’s kraftliner operations had an EBITDA margin of 35%. With a kraftliner trend price of EUR 600 per tonne, the investment is expected to generate an annual EBITDA improvement of approximately SEK 800-1,000 million after full ramp-up.
A profitable investment
Demand for paper based packaging is growing. This trend is being driven by a number of factors – increased e-commerce, a growing population and the ambition to reduce the use of plastic.
“This is a profitable investment in a growing segment,” says CEO Ulf Larsson. “We expect the investment to be profitable already during the first year of operation and to contribute positively to the return on capital from our industrial operations.”
“With the investment in Obbola we can meet the increased demand for sustainable packaging,” says Mats Nordlander, President, Paper. “We have access to high-quality wood fiber from Norrland. We have efficient and reliable supply of wood and logistic operations. As a result of this investment in the markets’s most advanced kraftliner machine with the best available technology, we will considerably improve the mill’s competitiveness, cost position and product quality.”
Full production during construction
The new paper machine is being constructed in a new building in line with the current paper machine. As a result the plant will be in full production during the entire construction period before switching over from the old machine to the new one ahead of the start up in 2023. The new plant’s ramp-up to full capacity is expected to take three years.
The total investment amount of SEK 7.5 billion includes investments in environmental improvements of approximately SEK 1 billion, including a reduction in the need for oil by 8,000 cubic meters per year and improvements in the water treatment capacity. Following the investment, SCA’s own industrial processes will be 97 per cent fossil-free.
SCA intends to divest SCA Logistics (Rotterdam) B.V. to the Dutch company Matrans Holdings B.V. The transaction is expected to reduce SCA’s net debt by about 575 M SEK, including both the purchase price and the effect of financial leases which are included in the sale. The divestment is expected to reduce SCA’s EBITDA by around 30 M SEK on an annual basis.
SCA Logistics (Rotterdam) B.V.’s operations comprises the port terminal, stevedoring, forwarding and ships agency services. The company leases quay and the terminal land area from the Port of Rotterdam and owns the warehouses, offices, cranes and vehicles located on the leased area.
Matrans Holdings B.V. currently runs logistic services from neighboring terminals. As part of the agreement, Matrans Holdings B.V. will continue to supply logistics services to SCA . SCA Logistics will also continue to run efficient and regular marine feeder traffics for bulk, roro- and container via the Rotterdam terminal. The terminal, under the new ownership of Matrans, will be run by the same management and staff as today.
“SCA has run its own logistic servies since 1967 and Rotterdam is one of the most important ports for SCA’s products”, says Magnus Svensson, President Sourcing & Logistics. “Through the sale of the terminal to Matrans Holdings, we will be able to maintain the present high logistics service level.”
SCA Logistics (Rotterdam) B.V. has approximately 80 employees in the Rotterdam terminal. The intended sale is subject to customary Workers Council consultation and approval by Port of Rotterdam.
For further information, please contact:
Magnus Svensson, President Sourcing & Logistics, +46 60 19 35 41
The core of SCA’s business is the forest, Europe’s largest private forest holding. Around this unique resource, we have built a well-developed value chain based on renewable raw material from our own and others’ forests. We offer paper for packaging and print, pulp, wood products, renewable energy, services for forest owners and efficient transport solutions. 2018 the forest products company SCA had approximately 4,000 employees and sales amounted to approximately SEK 18.8bn (EUR 1.8 bn). SCA was founded in 1929 and has its headquarters in Sundsvall, Sweden. For more information, visit www.sca.com
SCA’s Christmas gift to the company’s employees in 2018 was a donation of SEK 1.5m to three recipients. Cancer Research Foundation Northern Sweden received the largest donation.
SCA’s employees decided how the donation was to be divided between the three recipients by voting for the three alternatives on the company’s intranet. As a result, Cancer Research Foundation Northern Sweden will receive SEK 880,000, the WWF’s Save the Baltic Sea project will receive SEK 316,000 and Médecins Sans Frontières SEK 304,000.
The donations are being transferred to the three organizations with warm greetings for a happy new 2019 from SCA’s employees.
The core of SCA’s business is the forest, Europe’s largest private forest holding. Around this unique resource, we have built a well-developed value chain based on renewable raw material from our own and others’ forests. We offer paper for packaging and print, pulp, wood products, renewable energy, services for forest owners and efficient transport solutions.
In 2017, the forest products company SCA had approximately 4,000 employees and sales amounted to approximately SEK 16.7bn (EUR 1.6bn). SCA was founded in 1929 and has its headquarters in Sundsvall, Sweden. More information at www.sca.com