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SCA has been named one of the world’s most ethical companies by the Ethisphere Institute for the fourth consecutive year. According to the Institute, the ranking list recognises companies that go beyond making statements about doing business “ethically” and actually translate those words into action.

“SCA places a strong emphasis on corporate responsibility and we are very pleased about being named one of the world’s most ethical companies. It is recognition of all the employees’ work and how the extensive business of the SCA Group can be managed in a responsible manner,” says Jan Johansson, President and CEO of SCA.

As each year passes, the competition in the Ethisphere rankings intensifies, and 2011 was no exception. Ethisphere reviewed thousands of companies to establish a list of 110 companies that surpassed their industry peers in the area of responsible business. The 2011 list features companies in 38 industries, with 43 companies headquartered outside the United States.

The SCA corporate core values of Respect, Responsibility and Excellence, and its Code of Conduct, are the cornerstone of the Group’s business. SCA regularly evaluates its performance in meeting the standards of the Code of Conduct, and uses Business Practice Reviews to assess business ethics in the company. In 2010, a new global supplier standard for the hygiene business was developed, with one important aspect being alignment with SCA’s values and ethical principles.

Read more at http://ethisphere.com/worlds-most-ethical-companies-rankings/. For further information about SCA’s sustainability work, visit www.sca.com/sustainability, where you can download the Group’s latest sustainability report.

SCA’s Annual Report for 2010 has been published and is available at www.sca.com. SCA has also published its 2010 Sustainability Report, which can be downloaded from the same address.

The printed version of the Annual Report will be distributed by post to shareholders and other stakeholders on the week commencing 21 March.

The Environmental Court has granted SCA Östrand new conditions under the Environmental Code for the mill’s activities. This will allow the mill to ultimately increase production up to 660,000 tonnes of pulp.

The new maximum permissible production level of 660,000 tonnes of pulp, of which 550,000 tonnes of kraft pulp and 110,000 tonnes of CTMP (chemi-thermomechanical pulp), provides scope for continued efficiency enhancements and a long-term gradual increase in production.

The conditions have been approved by the Environmental Court following the negotiation process with supervisory bodies conducted in accordance with the Environmental Code.

“We will now examine more closely the implications of the new conditions. At first glance, they seem challenging, but balanced,” says Ingela Ekebro.

As a result of earlier investments, SCA has been able to steadily increase production and reduce the mill’s environmental footprint. The most recent in a line of investments is the ongoing construction of a new lime kiln, which is expected to be operational by the end of the year. This investment of SEK 500m enables a production increase and reduces CO2 emissions from fossil fuels by 80%.

Pursuant to earlier environmental conditions, SCA Östrand was licensed to produce 420,000 tonnes of kraft pulp and 90,000 tonnes of CTMP.

In 2010, SCA’s Ortviken and Laakirchen paper mills delivered more than a quarter of a million tonnes of FSC-certified publication papers. Deliveries of FSC paper grew by 35% last year. Although magazine-grade paper is most in demand, deliveries of FSC-certified newsprint are now also on the rise. Demand for FSC-certified solid-wood products and pulp remains high.

Interest among customers in FSC-certified publication papers continued to grow. In 2010, 19% of deliveries of publication papers from SCA’s paper mill in Ortviken, Sweden, and Laakirchen, Austria, were FSC certified, meaning that they met the Forest Stewardship Council’s standard for timber raw materials sourced from responsibly managed forests. Demand is growing for paper for magazines and catalogues – LWC and SC paper – and for newsprint.

“Demand for FSC-certified publication papers is greatest in Sweden, the UK and Germany, although growth was also noted in France during the year,” says Jan Knuts, Product Area Manager, LWC paper at SCA Ortviken.

Deliveries of FSC-certified LWC paper rose from 125,000 tonnes in 2009 to nearly 137,000 tonnes in 2010. Deliveries of FSC-certified SC paper from the Laakirchen paper mill increased from 60,000 tonnes to nearly 68,000 tonnes and newsprint deliveries tripled from 17,000 to 58,000 tonnes of FSC-certified paper.

Demand for PEFC-certified paper also increased in 2010. Laakirchen paper mill sold 47,000 tonnes of PEFC-certified SC paper compared with 29,000 tonnes in 2009. Demand for GraphoVerde, a high-quality SC paper with a recovered fibre content of at least 50%, remained high. GraphoVerde accounted for 18% of paper deliveries from the paper mill in Laakirchen, meaning that the full production capacity for this eco-friendly paper grade was utilised.

Demand for FSC-certified pulp from Östrand pulp mill remained high and – as in 2009 – deliveries of FSC pulp exceeded 50%. A total of 35% of SCA Timber’s deliveries of solid-wood products and processed timber products were FSC-certified.

The Forest Stewardship Council (FSC) is an independent, international member organisation that promotes environmentally appropriate, socially responsible and economically viable management of the world’s forests. SCA’s two and a half million hectares of forest in northern Sweden have been managed in accordance with the FSC’s standard for responsible forestry since 1999.

SCA R&D Centre normally supports SCA’s paper mills in their efforts to improve manufacturing processes and products. Since the growth rate in the demand for publication paper is falling all over the world, SCA R&D Centre is also working to a large extent on alternative applications for SCA’s wood raw products.

Many benefits
Not only do trees have desirable wood fibre, they also have various extractive substances such as what we usually refer to as “resin”.

These substances have no purpose in pulp and paper making; in fact they are a nuisance. But removing these extractive substances from the process would have many benefits.

“The extractive substances surround the wood fibres like soap and are one of the reasons why so much energy is required to produce pulp. If we could remove half of the extractive substances, energy needs would fall by about 15%,” says Bengt Wikman, Head of Chemical and Mechanical Pulp at SCA R&D Centre, and adds:

“Paper properties and runnability in the paper machines would also improve if we could reduce the extractive substances in the pulp.”

The new challenge for researchers lies in finding suitable methods for removing the extractive substances from the wood.

“We want to know whether it’s better to remove the extractive substances before the first stage of refinement, where the wood chips are converted to pulp, or whether it’s better to do it later,” says Birgitta Engberg, Project Manager for research into the extractive substances.

Birgitta is employed at Mid Sweden University, but works part time at SCA R&D Centre.

New products

If it was possible to separate the extractive substances from the wood fibres effectively, they could also be used as raw materials in soap, adhesives or impregnating agents. But there is a lot of work remaining before we can speak about specific products.

If we could remove half of the extractive substances, energy needs would fall by about 15%.

“First of all we need an efficient method for separating the extractive substances from the process water. Only then can we decide what products might apply,” says Marie Eriksson, Head of Sustainable Chemistry, and adds:

“We also have to look at the potential for removing the extractive substances. What would it cost, and what are the benefits? One alternative could be to use them as fuel – extractive substances have a very high energy value.”

There are other interesting substances in wood besides extractive substances. One of them is hemicellulose.

“Here at SCA, we do not conduct any research into converting hemicellulose to bioethanol by fermentation, which has received a great deal of focus in the US. We are more interested in using hemicellulose as a paper chemical, or for the manufacture of barriers. A recent trend all over the world is trying to find new and more efficient methods for utilising existing raw materials,” concludes Marie.

SCA has decided to implement three internal changes to the Corporate Senior Management Team.

Christoph Michalski has been appointed new President of SCA Global Hygiene Category. Christoph Michalski currently holds the position of President of SCA Asia Pacific.

Ulf Söderström has been appointed new President of SCA Asia Pacific. Ulf Söderström currently holds the position of Senior Vice President Business Development and Strategy, and is in that role also responsible for mergers and acquisitions, business intelligence and IT.

Robert Sjöström has been appointed new Senior Vice President Business Development and Strategy and will in that role also be responsible for mergers and acquisitions, business intelligence and IT. Robert Sjöström is currently President of SCA Global Hygiene Category.

“These changes will allow us to capitalise on the collective know-how of our leaders. We are working continuously to develop the organisation and our managers with the aim of advancing our business. These changes are part of this effort”, says Jan Johansson, President and CEO of SCA.

Christoph Michalski, Ulf Söderström and Robert Sjöström will continue to serve as members of the Corporate Senior Management Team and report to the CEO.

The changes will take effect on 31 March 2011.

 

SCA has been awarded the Institute for the Accounting Profession in Sweden’s (FAR) prestigious prize for the Best Sustainability Report 2009 in the category Large companies. The award was presented today at Finforum 2010, an international conference in Stockholm, Sweden, focusing on market communications in listed companies.

The FAR jury’s citation:
“The SCA Board of Directors discloses relevant sustainability information in the Annual Report as well as in a separate Sustainability Report for 2009, and by this demonstrates that sustainability issues are well established and highly integrated in the company’s business model.”

 “A systematic account with clear sustainability targets enables open and transparent dialogue with our stakeholders. SCA’s sustainability programmes constitute a strategically important and integrated part of the operations that we conduct to generate growth and value. Also, our sustainability activities enhance our competitiveness, reduce our costs and lower our risk level”, says Jan Johansson, President and CEO of SCA.

In addition, SCA recently received a citation for the Best Corporate Governance Report within the framework of a competition organised by PwC to highlight leading examples in the application of the Swedish Code of Corporate Governance. SCA received the citation for “a precise and coherent presentation with the theme of ‘Governance’ as the common thread throughout the report.”

For additional information, please contact:
Jörgen Olsson, Press and Media Officer, +46 8 788 51 29

SCA is a global hygiene and paper company that develops and produces personal care products, tissue, packaging solutions, publication papers and solid-wood products. Sales are conducted in some 100 countries. SCA has many well-known brands, including the global brands Tena and Tork. Sales in 2009 amounted to SEK 111 billion (EUR 10.5 billion). SCA has approximately 45,000 employees. More information at www.sca.com

60 “fat free” packaging concepts from students and non-professional designers all over Europe participated in the second edition of SCA Packaging’s Design Challenge. Both of the winning concepts are light bulb packages.

The jury’s prize

Karin Hartman and Per Eldénius from Sweden were awarded with the jury’s prize for their concept Bright Light. The pack is appealing, optimises material usage, proposes a well thought secondary and pallet pack and allows customers to see and test the product they are buying.

“They took the time to research their case and look at it from different perspectives, and this clearly pays off”, commented jury member Sonia Raja (Head of Purchasing at Tesco).

 Read more about Bright Light

The customer cup

Benjamin Gamillscheg and Hans Christian Schubell from Denmark managed to capture the customer cup with BrightPack. With BrighPack there is no more hurting yourself with a dull knife in the dark, since it only takes one simple move to open the BrightPack by hand. The packaging can easily be closed again, so you can test the bulb before purchasing it - or return it to the store in an intact packaging if it doesn’t fit.

Throw BrightPack in a pot, add water, and watch as nature creeps into your home.  Flip BrightPack anyway you like. It still stacks, stands or hangs.

 Read more about BrightPack

“It is a coincidence”, continues Wim Wouters European Design Director at SCA Packaging, “that both of the winning concepts are light bulb packages. Our brief was rather open; we challenged students to come up with a fat free, slick, lean packaging concept for any product sold in store. The fact that there were many more concepts for this type of product must be a clear sign for the light bulb industry that there is room for improvement.”

A new, fully automatic packaging line has been commissioned at the Ortviken’s paper mill. The SEK 48 m investment will eliminate a bottleneck and ensure that higher productivity in the paper machines can be packaged, while simultaneously reducing staffing.

The new packaging line will replace two semi-automatic lines that required high maintenance. One of these will remain but the aim is to use it as little as possible.

“Paper production increases every year. With this SEK 48 m investment, we have removed an earlier bottleneck in paper-roll packaging as capacity is increased from 160 to 180 per hour,” says Katarina Kolar, Production Manager at the paper mill at SCA Ortviken.

The new, fully automatic packaging line will reduce staffing by one person per shift or a total of five individuals.

“Along with other projects, this investment is part of our previously announced programme to reduce the staff of the Ortviken paper mill”, says Katarina Kolar. Over a two-year period the number of employees will decrease by 90”.

The new packaging line was delivered by Metso. During the 12-month rebuilding period, production will continue as usual. In addition to Ortviken’s own staff, about 70 people will be involved in assembly and installation during the rebuilding.

“When the packaging line has been aligned, we will continue with the next project, to mechanise our loading. That investment will also be SEK 48 m and the new loading system is expected to be in operation by next autumn,” says Katarina Kolar.

For further information please contact
Katarina Kolar, Paper Mill Production Manager, SCA Ortviken, tel +46 60 19 40 81.
Anne-Sofie Cadeskog, Communications Manager, SCA Ortviken, tel +46 60 19 41 33.

Source: SCA ORTVIKEN

SCA’s acquisition of the Copamex baby diaper business in Mexico and Central America has now been completed. The purchase price is equivalent to approximately USD 50m on a debt-free basis.

SCA already holds several strong market positions within the hygiene products segment, with tissue, feminine and incontinence protection products. The acquisition adds baby diapers to SCA’s product portfolio in Mexico and Central America.

The finalizing of the transaction follows approval by the Mexican anti-trust authorities.

The first press release regarding the transaction was published on 21 July 2010.

For additional information, please contact
Petter Tiger, Press and Media Officer, +46 8 788 53 62