SCA’s mission is to develop, produce and market value-added products and services within Personal Care, Tissue, Packaging and Forest Products. SCA’s products simplify the everyday lives of hundred of millions of people around the globe. They also generate strong cash flows that enable good dividend growth and raise the value of SCA shares.
Increased sales in emerging markets
Geographically most of SCA’s sales are concentrated in Europe and North America. As a result of acquisitions and good organic growth an increased portion of sales will take place in markets in Eastern Europe, Latin America and Asia. These prioritized growth markets today account for more than 16% of sales compared with 7% ten years ago.
Higher value-added
SCA endeavours to develop and launch products with a higher value-added content within all segments. Development starts by understanding the needs and preferences of customers and consumers as well as adapting this insight to new products with new functions. This also means that SCA’s role is changing from that of an easily replaced supplier to a strategic partner, which not only produces but also accepts responsibility for product development and complete solutions.
Strengths
Customer and consumer insight
In all business areas, SCA will increase the innovation rate for new products and services, taking sustainable development into account. Leading market positions and the Group’s major resources make SCA an attractive partner when customers increasingly seek complete solutions for the development of both products and services.
Regional presence with global skills
SCA’s focus means that the most efficient production and distribution takes place in regional markets close to customers. Many of SCA’s products cannot sustain the high costs of long-distance transport. While production is local, most of the product offerings are global. SCA’s size and geographic spread also provide significant economies of scale within research and development, brand positioning and concept testing.
Efficient production
SCA has a long tradition of continuous, sustainable improvement in the production structure and realization of the Group’s synergies throughout the production chain. This was intensified in recent years by the efficiency enhancement programmes. SCA’s own raw material base allows cost control through efficient raw material integration.
Sustainable development
Sustainable development has been a key part of SCA’s business model and product offering for many years. SCA’s sustainability policy and Code of Conduct stipulate how the Group addresses environmental and social issues which create value over time for shareholders and other stakeholders.