SCA is the world’s third-largest supplier of tissue. The company offers consumer tissue products including toilet paper, kitchen rolls, facial tissue, handkerchiefs and napkins. Products are sold both under own and retailers’ brands. In the Away-From-Home (AFH) product segment – encompassing hospitals, healthcare institutions, large work-places, restaurants and hotels – SCA develops and sells complete hygiene solutions comprising dispensers, tissue, soap, service and maintenance.
Production and efficiency
Production takes place at SCA’s 38 facilities in 18 countries. The manufacturing processes and logistics are optimised through continuous improvements, investments in more efficient plants and the discontinuation of unprofitable capacity. The integration of previous acquisitions facilitated the rationalisation of the European tissue operations and production was concentrated on efficient facilities in strategic locations.
The following activities were undertaken to strengthen competitiveness through cost-efficient production and increase growth in emerging markets: SCA is investing in new capacity in Latin America and Russia. A new production plant was com¬missioned in Russia in 2009 and a new facility in Mexico was opened at the end of 2010. The construction of a tissue plant in Colombia commenced, with production scheduled to start in 2011.
Innovation and product development
The ability to understand the demands of tomorrow’s consumers and customers is a fundamental strategy for the creation of lasting value. SCA is investing major resources in insight and innovation, with all product development taking place on the basis of in-depth customer and consumer insight. In recent years, a large number of new and upgraded products have been launched and the service level enhanced.
Focus is directed to the development of materials and functions to ensure a broader selection, improved strength, softness and absorption capacity, and different types of dispensers to offer more comfortable and effective use.
Growth
The conditions for continued growth in tissue are favourable, particularly in emerging markets. Growth is driven by innovation, the global population increase, higher market penetration and increased disposable incomes. Market penetration outside Western Europe and the US remains relatively low, with considerable growth potential. SCA’s target is annual organic growth of 3–4%.
