The forest is a renewable resource that forms the core of SCA’s operations. Around the forest, SCA has built a well-invested and efficient value chain. SCA wants to grow its forest resource and further increase the value from each tree.
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 and renewable 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. Increase the forest resource
SCA wants to grow as a forest owner and enhance growth in its forest assets through active forest management.
2. Increase growth and harvesting
Higher growth will enable a gradual increase of 25% in the sustained annual harvesting volume.
3. Acquire forest land in the Nordic region and the Baltic states
The acquisition of forest land, particularly in the Baltic states, is continuing.
4. Invest in the integrated value chain
SCA is investing to strengthen the integrated value chain and provide favorable returns, in parallel with ensuring that the company maintains a stable balance sheet.
5. Increase production of pulp, kraftliner and wood
SCA is pursuing investment projects to increase production, quality and efficiency in all product areas.
6. Realize business opportunities in renewable energy
SCA is forming a joint venture with St1 to produce biofuels, at the same time as wind power production on SCA’s land is increasing.
Strong project portfolio driving profitable growth
SCA sees significant potential for continued profitable growth. Investments must contribute to SCA’s integrated value chain and enhance the value creation from SCA’s forest resource. Projects must also provide favorable returns and ensure that the company maintains a healthy balance sheet.