SCA is Europe’s second-largest packaging company. The Packaging business area is a fully integrated – from forest to recycling – sustainable company. Packaging is a full-service supplier of packaging solutions for a large number of applications, including consumer and display packaging, shelf-ready packaging solutions, customised protective packaging and transport packaging made primarily from corrugated board, as well as an entire service concept aimed at manufacturers, distributors and retailers. Most of SCA’s packaging is used for food, consumer durables and industrial products.
Production and efficiency
SCA has some 170 facilities and mills in 21 countries in Europe, of which 34 plants are located in eight Eastern European countries. Containerboard is produced at six mills, of which four produce recycled grades and two kraftliner. SCA, Europe’s second-largest supplier of corrugated board packaging, operates in an integrated business model in which customers are offered major advantages in the form of efficient, sustainable production networks and business systems.
To strengthen competitiveness through cost-efficient production, the production processes and logistics are optimised through continual improvements, investments in more efficient plants and the closure of unprofitable capacity. During the year, the restructuring programme initiated in 2009 was concluded. By year-end 2010, the entire projected annual savings of slightly more than SEK 1bn had been achieved on an annual basis.
Innovation and product development
SCA develops complete packaging solutions and has strategic competence and competitiveness with an Innovation Centre and 16 Design Centres in Europe. At these centres, new packaging solutions are developed, and new technologies, material solutions and design tools are tested in close cooperation with customers. The creation of attractive opportunities for product display in stores is a key factor for strengthening brand reccognition for customers. The aim is to adapt and optimise the functionality of packaging based on logistical requirements and deliver a complete solution for each step of the packaging chain.
The SCA R&D Centre in Sundsvall, Sweden, conducts strategic research and development. The centre houses internal specialist expertise within key areas, but the centre also cooperates closely with the adjacent Mid-Sweden University in Sundsvall.
SCA analyses the entire delivery chain to minimise material consumption and maximise material and energy recovery. Decisions on packaging designs can have a high environmental impact. The right design allows SCA to provide its customers with packaging that ensures optimum performance without unnecessary waste. The right design also ensures better cubic utilisation. If goods can be shipped more densely, less transport is required, less fuel is consumed and fewer emissions are generated. The right design requires the right tools and SCA uses a number of proprietary tools during the design process.
Today’s society demands packaging that facilitates sustainable distribution and is produced from materials with the least possible environmental impact. SCA’s integration system complies with this principle: corrugated board begins with fibre from the forest that is used for production of paper and packaging and ends with the recovery of recycled fibre, all of which is managed within the Group.
Growth
Within Packaging, SCA will continue to focus on Europe, with the aim of achieving growth in pace with the market. Continued focus on efficiency and innovation are important initiatives to increase the share of value-added products. Work on developing the value chain and making it more efficient and sustainable as well as finding new product areas are also initiatives aimed at strengthening competiveness. Long-term competitiveness is also benefited by SCA’s environmental profile.
There is a distinct trend toward lighter packaging and packaging with higher-quality printing requirements. Demand for consumer-goods packaging is stable and is tracking consumption trends. Growth in transport packaging is sensitive to economic movements and varies depending on trends in the trade and manufacturing industries. High-value segments are less sensitive to economic movements than packaging for capital goods.
In the long term, SCA’s focus is to develop its leading positions in advanced packaging in high value-added segments. These segments have a more stable rate of growth and offer SCA future expansion opportunities with solid growth.
