The core of SCA’s operations is forest, 2.6 million hectares in northern Sweden. Around this unique resource, the company have built a well-developed value chain based on renewable raw materials from our own and other forests. SCA offer paper for packaging and print, pulp, solid-wood products, renewable energy, services for forest owners and efficient transport solutions.
Although Europe is SCA’s main market, the company also holds strong positions in Asia and North America.
SCA’s forest holding is a real asset with a rising value as a result of an annual net growth in the standing volume of approximately 3 million m3fo. Net growth is made possible through SCA’s high share of younger forest and through active forest management, including fertilization and thinning where specific measures, such as planting contorta pine, have been important initiatives to increase growth. Biological growth provides the forest with strong and stable cash flows and low risk over time. Net growth also means SCA’s forests bind approximately 4 million tons of carbon dioxide annually.
SCA’s forest products operations are concentrated in northern Sweden close to its forest holdings, which enables efficient utilization throughout the value chain from sapling to end consumer product.
SCA recognizes its operations and earnings divided into four segments: Forest, Wood, Pulp and Paper. Important operations and areas for development include logistics and renewable energy. SCA also engages in proprietary research and development in close collaborations with Mid Sweden University.
The Forest business area manages 2.6 million hectares of forest land in Sweden, of which 2 million is productive. The purchasing of timber from, and service provision to, private forest owners is an important business activity.
The Wood business area, a leading supplier of wood products, is among the largest in Europe with an annual production capacity of 2.2 million m3 solid-wood products. SCA’s five sawmills are among the most efficient and modern in Europe. Just over 40% of sales are to the building materials trade in Scandinavia, the UK and France. Slightly more than 30% of sales comprise components to the wood processing industry and the remainder of sales are standard wood products.
The Pulp business area consists of SCA’s pulp mill in Östrand, Timrå. The company is currently investing SEK 7.8bn here in doubling production. Östrand will become one of the world’s most competitive producers of bleached softwood sulfate pulp.
The Paper business area comprises packaging paper, kraftliner, which is produced in the Obbola and Munksund mills near Umeå and Piteå respectively, and publication papers from the Ortviken paper mill in Sundsvall. Demand for kraftliner is increasing and SCA is the largest independent supplier in Europe with well-invested mills. The market for publication papers is shrinking, but Ortviken is one of the world’s most competitive paper mills with a high proportion of new products in its portfolio.
The Renewable Energy business area includes SCA’s involvement in biofuel and wind power production. SCA also works to develop more advanced fuel products, such as biofuel.