SCA commands strong leading positions in Western Europe, North America, Latin America, Eastern Europe, Russia and Southeast Asia. Through strong global and regional market positions and brands, innovation, efficient production and world-leading sustainability work, SCA is well positioned to leverage the growth potential existing in both mature and emerging markets. SCA’s competitiveness is also supported by the Group’s broad product portfolio, with strong brands and raw material integration.
SCA aims to be the leading company in the markets that it serves. All operations in mature markets, such as Western Europe and North America, will continue to strengthen their positions. In addition to defending and reinforcing its position in mature markets, the aim is to advance positions in emerging markets, primarily in regions where SCA already has representation.
While growth will mainly be organic in old and new segments, acquisition-driven growth will also be pursued. In existing markets, the aim is to continue growing by, for example, broadening the offering of product categories, product ranges and services. A strategic priority is also to increase the number of global brands.
Sustainability
Sustainability comprises an integral part of the operation and the Group’s strategy for growth and value creation.
In 2011, SCA received several of the world’s most prestigious awards in the field of sustainability. SCA is included in the Dow Jones Sustainability Index and the FTSE4Good Index and was also named one of the world’s most ethical companies by Ethisphere. Read more about the Group’s sustainability work on page 64.
Continued proactive sustainability work combined with a strong profile and position in the area of sustainability for both the Group’s products brands and the SCA brand contribute to increased competitiveness and growth.
Hygiene business
SCA is currently the world’s third-largest hygiene company in its product categories and the divestment of the packaging operations enables continued increased growth in the hygiene business. Sales of hygiene products amount to approximately SEK 64bn, or about 60%* of the Group’s total sales. The growth potential for hygiene products remains favourable and the main drivers are global population growth, an aging population, increased market penetration and higher disposable incomes. In addition, customers and consumers in mature markets are becoming more aware of, and demand more from, comfort and sustainability. A higher standard of living and increased consumption of hygiene products are closely interconnected.
SCA prioritises growth in hygiene products. As the share of sales of hygiene products in the Group grows, the sensitivity to economic fluctuations decreases, thus ensuring long-term stable profitability, growth and value creation.
Forest Products and Packaging**
SCA is one of Europe’s most profitable producers of forest products and Europe’s second-largest packaging company. Important initiatives included continuing the work focused on efficiency and innovation and to increase the share of valueadded products. Activities aimed at developing the value chain and making it more efficient and sustainable and identifying new product areas in close cooperation with customers are also prioritised in order to enhance competitiveness. For Forest products, the primary aim is to increase the share of customised publication papers and solidwood products. Aside from its valuable contribution to raw material integration, the forest offers the potential for energy production, both in the form of biofuel and wind power.
For Packaging, SCA’s long-term 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.
** On full completion of the acquisition of Georgia-Pacific’s European tissue operations and the divestment of the packaging operations, the hygiene business will account for about 80% of total consolidated sales.
** In January 2012, SCA announced the sale of its packaging operations, excluding the kraftliner mills in Munksund and Obbola, Sweden. The sale is expected to be fully completed in the second quarter of 2012.