SCA is Europe’s second-largest packaging company. SCA’s Packaging business
area offers packaging solutions for food, consumer durables and industrial products.
These packaging solutions include consumer and display packaging, shelfready
packaging solutions, customised protective packaging and transport packaging as well as an entire service concept aimed at manufacturers and retailers.
In January 2012, SCA gave notice that the packaging operations, excluding the
kraftliner mills in Munksund and Obbola, are being divested. The sale is expected
to be completed during the second quarter of 2012.
Production and efficiency
SCA has about 110 facilities and mills in 20 countries in Europe, of which 20 facilities are located in Eastern Europe. Products are marketed in 36 countries. Containerboard is produced at six mills, of which four produce recycled grades. SCA’s two kraftliner mills in Sweden are not included in the ongoing divestment.
SCA operates in an integrated business model in which customers are offered major advantages in the form of efficient and sustainable production networks. 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.
Innovation and product development
SCA seeks to develop optimal packaging solutions with regard to function, design, logistics, transport, and environmental footprint. Another key area of innovation is utilising innovative packaging solutions to strengthen retail points of sale and reduce logistical complexity for the industry.
The creation of attractive opportunities for product display in stores is a key factor for strengthening brand recognition 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.
Innovation is driven by SCA’s central innovation centre in Brussels and by 16 design centres in Europe. These centres develop new packaging solutions, test new material solutions and design tools in close collaboration with customers.
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 volumetric 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 its own tools and experts during the design process.
Growth
SCA’s goal is to grow in line with the European market for packaging. As in the past, 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 identifying 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.
In December, a decision was taken to invest in existing kraftliner production in Munksund, Sweden, with the aim of increasing production of a strong speciality paper, White-Top Kraftliner. Uses for the product include packaging for fastmoving consumer goods with high-quality print. The investments mean Munksund will increase annual capacity from 360,000 to 415,000 tonnes. The upgraded machine is expected to be fully operational during 2013.
