The world’s largest kraftliner machine is now in production at SCA´s Obbola Paper Mill. This multi-billion-kronor investment will significantly increase the fossil-free production of kraftliner. SCA Logistics is therefore revising its Ro-Ro timetable and opening up new shipping opportunities during 2023.
Ortviken's new factory facility was inaugurated on 16 May 2023 with a ceremonial speech by Berit Högman, Governor of Västernorrland County, and a "ribbon cutting" by timber sports profile Ferry Svan. This means that the journey towards the production of 300,000 tonnes of climate-smart CTMP pulp has formally begun.
O-ringen (The world´s biggest orienteering adventure) starts in Åre on July 22-28, 2023. SCA is sponsoring the first stage, on July 23, and will be present during the other competition days to spread awareness of SCA to visitors and competitors in a 25 square meter tent on the market street near by the Holiday Club. Welcome to see us!
Kristina Enander, President of SCA’s Pulp business area, will assume the role of Senior Vice President Strategic Development on May 1, 2023. In addition to overall responsibility for driving SCA's strategic development, the role also includes responsibility for research and development, the Group's technical department, and the Group's IT operations. Enander has worked at SCA since 1993.
January–March 2023 compared with January–March 2022
· Net sales amounted to SEK 4,813m (5,015). The decrease was mainly related to lower selling prices for solid-wood products and containerboard.
· EBITDA declined 21% to SEK 2,055m (2,608). The change was mainly attributable to lower selling prices. Growth in renewable energy and strong earnings in forest operations, primarily based on a high degree of self-sufficiency in wood raw material, had a positive impact on earnings. EBITDA margin was 42.7% (52.0).
· Operating profit amounted to SEK 1,596m (2,223).
· Operating cash flow increased to SEK 1,203m (1,143) and continued to finance ongoing strategic capital expenditures.
· Earnings per share was SEK 1.74 (2.45).
January–March 2023 compared with October–December 2022
· Net sales amounted to SEK 4,813m (4,873). The change was mainly attributable to lower selling prices for pulp and containerboard, which were offset by higher delivery volumes.
· Higher delivery volumes and growth in renewable energy had a positive earnings effect. EBITDA increased 4% to SEK 2,055m (1,981). Good control over SCA’s own value chain with a high degree of self-sufficiency in wood, energy and logistics yielded a controlled cost development. EBITDA margin increased to 42.7% (40.6).
A large part of SCA Containerboard's innovation work is based on conversations and listening to customers' ideas and needs. Ultimately, it's about helping them become more competitive. Such a strengthening innovation for business is SCA Smart Box - a digital tool for testing different combinations for corrugated board quickly, easily, and risk-free.
Two-thirds of forest owners’ income is derived from sawmills, and a competitive sawmill industry is in many ways the engine that drives the forestry sector. This is why SCA has invested close to one billion kronor in the development and efficiency of its sawmills in recent years with the aim of maximising the value generated from each tree all times.
SCA owns around 71,000 hectares of land in the Baltics, of which approximately 59,000 hectares is forest land. The forest holding is vital for supplying SCA’s industries with raw materials and increasing SCA’s climate benefit.
“We manage the forests to ensure that they grow well. This means that they bind large amounts of carbon dioxide and provide substantial amounts of raw materials for renewable products, which replace products with a larger carbon footprint,” says Jonas Mårtensson, Director SCA Forest.
SCA is making a major investment in CTMP pulp, tripling its capacity from 100,000 tonnes a year to 300,000 tonnes, increasing the supply of sustainable materials on the world market for packaging and other products.
“Now our customers can manufacture more climate-smart products, which replace products made from fossil-based materials,” says Kristina Enander, Director, SCA Pulp.
The world’s largest machine for the production of kraftliner has entered service in Obbola in Västerbotten, outside Umeå, eastern Sweden. With a total investment of SEK 7.5 billion, this major project has been completed ahead of schedule and within budget, significantly increasing opportunities to produce packaging materials that replace plastic.
Today, 21 March, is UN International Day of Forests. SCA, Europe’s largest private forest owner, welcomes the UN’s efforts to highlight the benefits provided by forests and encourages member states to plant more trees.
SCA is publishing its annual and sustainability report for 2022 today. The report sets out how, as Europe's largest private forest owner with the forest as the core of its business, SCA creates stable and profitable value growth over time. The report also covers SCA's high degree of self-sufficiency and investment programme in northern Sweden and the Baltics.
SCA has done some test driving with the electric timber truck to the forest in order to transport wood. It is the first time ever that an electric timber truck is being used practically in the forest. The truck is normally driven between Gimonäs wood terminal and Obbola kraftliner mill.
Notice is given to the Shareholders of Svenska Cellulosa Aktiebolaget SCA (”SCA”), Reg. No. 556012-6293,of the Annual General Meeting of Shareholders to be held on Thursday, March 30, 2023, at 1.00 p.m. in Sundsvall at Clarion Hotel Sundsvall (registration from 11.30 a.m.)
For a few weeks, SCA has been test-driving the Centipede concept machine, which Komatsu and eight Swedish forestry companies are jointly developing. The results are promising. The machine is seen as the sustainable forest machine of the future and combines lower soil compaction, increased productivity and better work environment.
SCA and the Swedish Transport Administration are now testing geofencing in about 40 timber trucks that travel along selected roads in Jämtland and Västernorrland. Geofencing is a technology that automatically reduces the speed of vehicles when they enter a specific area.
“This is entirely in line with our safety work and to protect the local environments of the areas where we operate,” says Lars Nolander, Logistics Manager at SCA Skog.
Nature conservation harvesting to promote broad-leaved forest that SCA conducted in western Medelpad in 2020 has already yielded some positive results. The idea was also to attract birds that thrive in light, sunny broad-leaved forest, and it seems that several bird species have responded fast to SCA’s operation, according to the inventory compiled by BirdLife Medelpad.
A durable wooden facade system that can change character and take on audacious shapes is just around the corner. Camilla Schlyter is the architect behind the project, which unites traditional timber craftsmanship with high-tech digital design tools to develop a refined facade system that, with its many design possibilities, will help tomorrow’s architects to express their creativity.
SCA has acquired its first wind farm with the purchase of 36 wind turbines in Markbygden in Piteå municipality, northern Sweden. The acquisition is in line with the company’s previously stated goal of becoming one of the Sweden’s leading providers of fossil-free electricity generated by wind power. Twenty per cent of Sweden's installed wind power capacity is currently located on land owned by SCA.
Sawmills that use every last millimetre of sawn timber in the best possible way and industries that refine pulp in the best possible way. It’s vital to increase the value of SCA’s forests over time. “It’s also important that we manage the forests in such a way that they achieve a high rate of growth and produce great quality wood. At the same time, of course, we need to protect biodiversity and many other values in our forests,” says Jonas Mårtensson, President of SCA’s Forest business unit.
The forestry industry is often billed as being a major contributor to the Swedish economy, regions and municipalities - but it is not always so easy to understand why this is the case, and what different terms used mean. So, we’ve asked national economist and author, Klas Eklund, to explain the forestry sector’s contribution to the economy.
SCA sponsors more than 100 community associations in Norrland. This is our way of contributing to meaningful leisure activities for children and young people and to a richer life for those who live in the region. In November, SCA signalled its deepening commitment to ice hockey club Timrå IK with a sponsorship deal that will see, among other things, Timrå IK’s home venue being renamed the SCA Arena.
“This deal is based on our aim to continue to support the important social sustainability work that Timrå IK does,” says SCA CEO Ulf Larsson.
Returning state tax revenues from wind power to the municipalities where the power is produced, would provide municipalities with a new stable source of income on which to build services and welfare services.
In October 2022, the world's largest paper machine for the production of kraftliner started up at SCA Obbola paper mill. With the latest machine technology and digitalization, SCA is setting new standards on the market.
The extremely rare beetle species, Phryganophilus ruficollis, has been found in Tjäderberget Conservation Park close to Lycksele. The observation was made by a researcher from SLU last summer. The species has never been found in Västerbotten before and is classified as critically endangered.
The green chemical company Sekab and SCA have worked together with RISE and RISE Processum in the Lignosize project with the idea of replacing today's fossil-based hydrophobing agents in the production of paper. By refining the renewable raw material lignin, the use of fossil chemicals in paper production will be reduced.
SCA is delighted to deepen its involvement with ice hockey club Timrå IK in the form of a naming rights agreement that will see the club’s home renamed the SCA Arena. The agreement is based on a desire to continue supporting the social sustainability work that permeates the club’s activities, from its children’s skating school, through youth development and up to its elite teams.
Ask someone what a fax is and you may well receive a quizzical look. Hand someone a printout, and you are likely to provoke a shake of the head. Today, computers, tablets and smartphones dominate our lives. Everything must be available at all times, everywhere, with a few simple clicks. In other words, if you want to keep up, you have no choice but to change with the times, something that SCA Wood has long understood and that SCA Wood
Scandinavia has now done to the full.
When the North American contorta pine was first planted in Sweden in the 1970s, it was with a clear objective in mind: to restore balance to forest stocks as quickly as possible, thus ensuring the long-term availability of raw materials. Today, just over 50 years later, SCA is ready to introduce this new tree species to the market and begin large-scale production of sawn timber products in Lodgepole pine.
SCA is the first operator in the forestry industry to introduce a warning system on soil scarifiers to protect ancient and cultural remains. When lights flash in another color, operators know their machine is close to remains and can make sure the remains are not damaged. “This is revolutionary and a major step forward in our efforts to reduce damage,” says Ulla Sandenér, head of SCA’s forest management department.
SCA and Holmen have today agreed to conduct a feasibility study regarding a potential new jointly owned sawmill in Rundvik, Nordmaling municipality in Västerbotten. A new sawmill in Norrland with high production capacity would increase the value of forest assets in the long term.
SCA will introduce a new reporting segment – Renewable Energy – from January 1, 2023. The decision is in line with SCA’s stated ambition to grow and realise business opportunities in the renewable energy sector.
January–September 2022 compared with January–September 2021
· Net sales increased 13% to SEK 15,921m (14,059), which was mainly related to higher selling prices in all product areas.
· EBITDA increased 30% to SEK 8,213m (6,303). The increase was mainly attributable to higher selling prices in all product areas. Cost increases were largely offset through good control over SCA’s own value chain with a high degree of self-sufficiency in wood and energy. EBITDA margin increased to 51.6% (44.8).
· Operating profit increased to SEK 7,052m (5,226).
· Operating cash flow increased to SEK 4,958m (3,453) and fully financed ongoing strategic investments.
· Earnings per share was SEK 7.85 (5.68)
As a part of the company's efforts to increase production of further processed and climate-smart wood products for the building materials trade in Scandinavia, SCA is now investing SEK 55 million in its planing mill in Stugun just east of Östersund. An investment that further strengthens the company's own value chain and operations locally in Jämtland.
The word digitisation immediately brings to mind massive server halls full of blinking lights, e-invoices and digital meetings. Likewise, we tend to associate industry with heavy machinery, assembly lines and manual labour. A somewhat outdated image that no longer entirely reflects reality. Not in Bollsta, at least. It is there that one of the most technologically advanced dry sorting lines in the world is currently being installed; a smart facility that will only grow smarter as time goes by.
Electric cars are becoming a more common site on our roads. Now it
is the turn of the heavy industrial vehicles to be electrified to reduce
emissions and fossil dependency. “You don’t need any advanced calculations to understand that electrification is a crucial component of our development,” Anders Petersson,
director of innovation and sustainability at SCA Wood.
At SCA’s nurseries, you can almost hear the seedlings growing. Every year, approximately 100 million seedlings see the light of day here at SCA’s own forest nursery. Seedlings that eventually grow into adult trees, absorb carbon dioxide and form the forests of the future.
Since the 1980s, the Swedish forestry sector has increased the intensity of its biodiversity efforts. Biodiversity is SCA’s top environmental priority, and we believe that biodiversity should be an integral part of forestry. Experience, inventories and analysis are important tools in achieving this.
Forestry is vital for Sweden. Its central role in the national economy makes the industry a key part of national debate. However, the public conversation about forestry is all-too-often characterised by rash claims and unequivocal conclusions – which are often misleading and sometimes downright false.
At the end of January 2022, it became clear that SCA will receive the environmental permits required for the land building in connection to the new container port in Tunadal, just outside of Sundsvall. The land building is a key factor in the project as it creates more surface for increased cargo handling and the reception of larger project goods.
SCA has protected forest areas with high nature values in Jokkmokk municipality for decades. This week, on September 19, an agreement has been reached between SCA, the County Administrative Board of Norrbotten, the Swedish Environmental Protection Agency and NGO Steget Före on the formal and long-term protection of 1,114 hectares of forest as nature reserves and conservation areas.
SCA has been awarded the highest rating – A – in Position Green’s ESG ranking of the 100 largest companies listed on the Stockholm Stock Exchange. This means that SCA’s financial reporting is judged to be exceptional.
SCA and Medelpad’s Botanical Association have signed a three-year cooperation agreement. The idea is that the association will conduct an inventory of changes to the species composition of vascular plants following the nature conservation harvesting carried out by SCA in western Medelpad.
SCA is taking a new step to develop its renewable electricity business. This is done by hiring Jon Persson, most recently Swedish Country Manager for solar farms at the wind and solar power company OX2, as wind power manager in the Renewable Energy business area.
SCA's sustainability efforts have been recognised with EcoVadis' most prestigious rating – putting it among the top 1 percent of the 90,000 rated companies. Hans Djurberg, Head of Sustainability at SCA, sees this as fitting recognition of the company's overall approach to sustainability.
January–June 2022 compared with January–June 2021 Net sales amounted to SEK 10,914m (8,982). The increase was mainly attributable to high demand for SCA’s products, higher selling prices and increased sales to core markets. Through its own logistics company, SCA has a unique control over logistics from the forest to the customer, which has benefited delivery reliability in a turbulent period.
The war in Ukraine affects many forestry contractors, who have not been able to hire enough staff. Åke Backman in Älvsbyn has only got hold of a fraction of his staff, but some could be solved thanks to the fact that he hired women who fled the war in Ukraine. ”I have seven women from Ukraine who work for me and then I let a few more women with young children live in my houses, which are still empty because of the staff shortage,” says Åke.
Svenska Cellulosa Aktiebolaget SCA (publ) on May 8, 2018 established a Medium Term Note program (MTN) with a loan framework amounting to SEK 8 billion. Up to and including July 15, 2022 SCA has issued SEK 6.2 billion under the MTN program, of which SEK 4 billion is outstanding.
We at SCA Arcwise were honored when Carlsberg Group asked us to develop the packaging for their New Fibre Bottle. The latest version of the Fibre Bottle is now fully bio-based (apart from the cap) and recyclable.
To further strengthen the sustainable value chain, SCA has, together with Scania, developed the world's first electric timber truck with a capacity of 80 tonnes. SCA's goal is to make the entire value chain fossil-free. "We have come a long way in industrial processes, which are already 96 percent fossil-free. We are very pleased that we together with Scania can break new ground to make the heaviest transports fossil-free," says Hans Djurberg, Head of Sustainability at SCA.
There are white-backed woodpeckers nesting on SCA’s land in Västerbotten. This very rare woodpecker has stringent habitat requirements and SCA has taken several measures in the area to try and attract the bird. It seems those efforts have finally paid off.
SCA is currently building a new container port in Sundsvall. The port lies directly adjacent to the logistics park, and will thereby be part of Sweden’s most important transport hub. “More and more people are starting to see how the logistics investments are benefiting the entire region. Sustainable and efficient transport is important for encouraging companies to establish themselves here,” says Jens Olsson, Technical Director at SCA.
Forests sequester large amounts of carbon dioxide as they grow. However, they also have considerable climate impact when they are felled because products produced using wood form forests replace fossil-based products so that oil and coal can be left in the ground. “We must consider both these parameters to be able to make political decisions that have the greatest positive impacts on the climate. There is a holistic calculation model that helps do just that,” says Peter Holmgren, an expert on forestry and climate.
SCA is awarded for the company's sustainability work with the Swedish forest. In the motivation for the award in the category “Large Cap”, it is emphasized that SCA's forest is 100 percent certified through FSC and PEFC, that SCA is already clearly climate positive and has clear future goals for climate work.
SCA has designated ten Action Plan (Sw. Åtgärdsprogram or ÅGP) landscapes that contain concentrations of species with particular requirements and are included in special action plans. The approximately 30 ÅGP species are also on SCA’s list of protected species. “Simply put, this is about doing the right thing at the right location. We are now raising our level of ambition in relation to nature conservation measures in both forests with nature conservation targets and in forests with production targets,” says Anna Cabrajic, forest ecologist at SCA.
SCA has decided to invest SEK 70 million in a new saw-line infeed and pellet plant at the Rundvik Sawmill. This investment will not only broaden and strengthen operations at the sawmill, it will also make the company’s entire value chain even more sustainable.
Only the wind power available on SCA land could rival the production of electricity from nuclear power relatively quickly. Unfortunately, permit processes and poor incentives reduce that potential to negligible amounts.
A world-class whisky is being produced in an impressive building by the mighty Ångerman river in northern Sweden. Large amounts of energy are required to produce whisky but at this particular distillery, energy is produced from pellets supplied by SCA.
From above, the site in Tjäderberget Conservation Park looks like a large chess board with forested patches alternated with small harvested areas. SCA has tested a variation of group selection harvesting here with the aim of retaining the feeling of a forest after harvesting and avoiding large treeless areas.
A new type of forest machine is currently driving around the forests of Sweden. It combines a low-impact approach, increased productivity and an improved operator environment and is the result of a major cooperative project that has been under way since 2019. The concept machine is called Centipede and it has been developed by SCA, seven other Swedish forestry companies and the forest machinery manufacturer Komatsu. The machine is currently being test driven and the results are promising.
SCA Forest’s major training initiative to promote safer transport of timber could restart during the winter, following a break due to the pandemic. The focus this time is entirely on the truck drivers’ work environment outside the timber truck’s cab.
SCA today publishes its annual and sustainability report for 2021. In the report, SCA describes the company's work to contribute to a fossil-free society. SCA's climate benefit in 2021 amounted to 10.5 million tonnes of carbon dioxide based on the forest's net carbon sequestration, substitution effect and reduced fossil emissions.
A gigantic wooden freezer. That is how you can describe the new building at SCA’s Bogrundet nursery in Timrå. Here, a few million frozen seedlings are stored, awaiting delivery when spring comes. “More and more customers are interested in frozen seedlings delivered in corrugated board boxes, so this is an important complement in order to provide the best service to our customers,” says Anders Tolblad, Department Manager at Norrplant and in charge of the construction of the new cold storage facility.
According to SCA’s articles of association, owners of Class A shares have the right to have such shares converted to Class B shares. Conversion reduces the total number of votes in the company. When such a conversion has occurred, the company is obligated by law to disclose any such changes in this manner.
SCA conducts extensive logistics operations at Tunadal outside Sundsvall. For some time now, an expansion of the port is underway in the form of a new container port. As maritime traffic is expected to increase in the future and larger vessels are expected to call, SCA has also decided to expand the port through land construction.
SCA invests MSEK 90 in the pulp mill in Östrand. The investment will lead to cost savings but also increase the factory's production capacity. The investment will also improve the local environment by reducing the risk of odour disturbances.
Now that the company has replaced its two oil-fired lime kilns with a biofuel-fired lime kiln, SCA Containerboard can claim to be the first kraftliner manufacturer with fossil-free industrial processes.
SCA has appointed Andreas Ewertz as its new CFO. Ewertz has worked at SCA since 2017, where he has been responsible for investor relations and served as head of business control for business areas Publication Paper and Pulp, respectively.
January–December 2021 compared with January–December 2020 Net sales amounted to SEK 18,822m (18,410). The discontinuation of the publication paper operations in the first quarter of 2021 (see page 5) and the divestment of Wood Supply UK in the fourth quarter of 2020 (see page 7) had a negative impact on sales.
On 22 January 2022, SCA Logistics opened up for business in the Port of Tilbury, with agency staff and high quality storage. This will coincide with the closure of SCA’s terminal in Sheerness. The objective is more efficient distribution with the same good level of service.
2021 was another record year for SCA’s seedling operation NorrPlant. During the year, some 112 million seedlings were delivered, an increase of over 8.5 million compared with 2020! “A fantastic record,” says Thomas Vestman, Head of NorrPlant.
“50 hectares with rare angel’s hair lichen. That’s not a discovery you make every day,” says Lena Högberg. She conducts conservation value inventories for SCA in Ångermanland and it was during such a project that she found the rare lichen.
SCA’s commitment to promoting butterfly habitats in Jämtkrogen’s butterfly landscape is continuing. Scything grass, felling spruce, and leaving havens of forest residues and stems of sallow, birch and aspen are some of the measures that have been taken.
SCA has performed restoration measures at Stentjärnsmyren marsh in Medelpad to restore it to flooded wetland. The initiative is in collaboration with BirdLife Medelpad, which is conducting an inventory of birdlife in the area. Moreover, SCA’s stall pellet customers are also lending their support.
SCA has restored embankments in old gravel pits in Ånge to help sand martins. It is hoped that this will encourage the swallow to breed there. BirdLife Medelpad has provided expertise and will monitor the progress of the recolonization in the future.
The restoration of wetlands and the white-backed woodpecker were a few of the topics discussed at this year’s reference group meeting in Sörgraninge conservation park. “It is invaluable to receive many opinions from different stakeholders,” says Mikael Berg, park manager.