SCA is the world’s third-largest supplier of tissue. The company offers consumer tissue products including toilet
paper, kitchen rolls, facial tissues, handkerchiefs and napkins. Products are sold both under own and retailers’
brands. In the Away-From-Home (AFH) product segment – encompassing institutions, hospitals, large workplaces,
restaurants and hotels – SCA develops and sells complete hygiene solutions comprising dispensers, tissue, soap,
service and maintenance.
Production and efficiency
SCA produces tissue at 45 plants in a total of 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 in efficient facilities at geographically strategic locations.
A new efficiency programme was initiated during 2011.
During the year, SCA decided to invest in a second tissue machine for the mill in Sovetsk, Russia to further strengthen competitiveness through cost-efficient production and increase growth in emerging markets. The new tissue machine has a capacity of 60,000 tonnes per year and production is based on fresh fibre. Production is planned to start in 2013. In April, another decision was made to invest in a new tissue machine in Kostheim, Germany. The principal reason for the investment was to meet needs for AFH tissue. The new tissue machine has a capacity of 60,000 tonnes per year and production is planned to start in 2013.
Innovation and product development
Innovation in the Tissue business area is based on the ability to understand the demands of tomorrow’s consumers and customers. 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 range, improved strength, softness and absorption capacity, and different types of dispensers to offer more comfortable and effective use.
Growth
During the year, SCA increased sales of consumer and AFH tissue. Sales increased by 4% for the business area, excluding exchange rate movements. Sales increased in emerging markets by 10%, excluding exchange rate effects. SCA’s target for the business area is an annual rate of organic growth of 3–4%. Market penetration outside Western Europe and North America remains relatively low with substantial potential for growth.
