SCA’s values are based on a belief in the importance of forests for a sustainable future for everyone. A long-term approach and sustained profitability are central to SCA’s strategic direction and, together with dedicated employees, innovation and continuous improvement, create profitable growth.
Increased value from each tree
Around the growing forest resource, SCA has built a well-invested and efficient value chain that maximizes the value of each tree. SCA’s investments help to strengthen the integrated value chain and to achieve favorable returns, at the same time as the company maintains a healthy balance sheet.
Growing forest asset
The forest is a resource that provides stable profitability and increase in value. Active and sustainable forestry maximizes growth in the forest. The forest growth rate is about 4%. Today, SCA only harvests approximately 60% of the growth, which increases the standing volume and future cash flow.
1. Forest: the source of value creation
The forest is the source of SCA’s value creation and represents the foundation for a sustainable supply of renewable raw materials. The high level of net growth will yield more timber and increase cash flow in the future. SCA’s strategy is to utilize active and sustainable forestry to enhance growth.
2. Wood: moving forward in the value chain
The most valuable part of the tree is used for sawlogs. Efficient sawmill operations ensure that as much as possible of the tree is used for high value wood products. The value of the forest is secured through the focus on value-added products for the industry and the building materials trade.
3. Pulp: doubled capacity
SCA has invested almost SEK 8bn in doubling pulp production to meet rising demand and to become leader in terms of quality, cost-efficiency, environmental performance and competitiveness. The focus for 2019 is on trimming the mill to reach full capacity utilization and the highest quality. A growing market and favorable trends create the potential for further expansion.
4. Paper: possible kraftliner expansion
The kraftliner market – paper for transport packaging – continues to grow. A strong global economy, growth in e-commerce, the transition from plastic packaging to renewable materials and strong industrial development drive demand for transport packaging. SCA is conducting a pre-project to assess the possible expansion of kraftliner.
5. Renewable energy: the next value creator
SCA’s forest assets and industrial operations provide the company with excellent possibilities to develop new business in the field of renewable energy, where by-products from the forest and from SCA’s industries provide the raw materials. SCA is conducting intensive development work in the fields of biofuels, green chemicals and wind power, and exploring various forms of partnership in these areas.
Strong project portfolio driving profitable growth
Greater environmental awareness and the transition to renewable products favor SCA. The company is evaluating several projects with attractive market potential. SCA’s project portfolio includes the potential expansion of both kraftliner and pulp. Wind power projects increase returns from forest land. Projects to produce biofuels enable by-products from the forest and industries to be refined into high-quality energy products.