sca magazine shape 4 2007
TRANSCRIPT
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SHAPESHAPEETT MAGASIN FRN SCA OM TRENDER, MARKNADER OCH AFFRER N 2 200
SHAPESHAPE
todays hottest marketing site
FISH THRIVE ATPULP MILL
A MAGAZINE FROM SCA ON TRENDS, MARKETS AND BUSINESS N 4 200
MATSLEDERHAUSEN
PATENTSMOVING EAST
on goals higher than making money
YOUTUBE
Camera:
Shapeonm
oosehuntC
amera
:Shapeo
nmoosehunt
GERM
ANS
LOVE
DISCOUN
TS
New mill in RussiaCutting emissions on the road CEO has the worNew mill in RussiaCutting emissions on the road CEO has the wor
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Contents N4 2007
6
Almost everyone in
Germany shops at
discount chains.
COVER page 6-14
SHAPE
TODAY
YOU EVEN SEEPORSCHESIN THE PARKING LOT
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04SHAPE UP
China scours Europe for recyclable paper, Googlebelieves in print, and retail extends its reach.
06SHAPE COVER
Beer and business top the bill of fare at Oktoberfestin Germany, where shoppers love a discount butdont forget their local butcher and baker.
14TREND
Smart freight handling can cut carbon dioxideemissions and save money. Marketers switch onYouTube, and patents move East.
20PROFILE
Meet Mats Lederhausen, who invests incompanies that do more than make money.
24TECHNOLOGY
Surprise: fish now thrive in the waste waters of thestrands pulp mill.
26SCA INSIDE
SCA invests in new mill in Russia, and a 16-year-old from Norway wins the Libresse designcompetition.
30CAMERAShape stalks the wild moose, king of the forest.
34SHAPING A VIEW
SCAs CEO Jan Johansson has the word.
[4*2007]SHAPESCA*3
SCA Shape is published in Swedish and English. The
contents are printed on GraphoCote 80 gram from SCA
Forest Products. Reproduction only by permission of
SCA Corporate Communications . The opinions expressed
herein are those of the authors or persons interviewed
and do not necessarily reflect the views of the editors or
SCA. You can subscribe to SCA Shape or read it as a pdf
at www.sca.com.
SCA Shapeis a magazine from SCA Address SCA,
Corporate Communications, Box 7827,
103 97 Stockholm Telephone +46 8 788 5100
Fax +46 8 678 8130 PublisherBodil Eriksson
Managing editor Anna SelbergEditorial Anna Selberg, SCA, and Gran Lind, Kristin
Peva, Appelberg Design Tone Knibestl, Appelberg
Printer Srmlands Grafiska Quebecor AB, Katrineholm
Cover photo Frans Hllqvist
20
30
16
26
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Bightefutu
SHAPE UP
4*SCA SHAPE[4*2007]
PHOTO:ISTOCKPHOTO
Ikea will invest several billion dollars in
new stores over the next few years as its
drive to lower costs continues, Ikeas new
chairman, Gran Grosskopf, says in an
interview with the Swedish business daily
Dagens Industri. Increasing global com-
petition and more intense price pressure
account for the move.
Its because of other furniture chains,
DIY chains like Home Depot and rapidly
growing retail giants like Wal-Mart ,
which are expanding their productrange, Grosskopf tells the newspaper.
We see really great potential for growth
and will invest heavily, among other
things in a number of new stores in both
existing and new markets, he says, men-
tioning India as a possible market.
While many major players report-
ed lower earnings than expected
in September, the retail market
overall grew more than expected
during the month. Statistics from
the US Department of Commerce
indicate a growth rate of 0.6 per-
cent, double the forecast.
Concerns about housing loans in
particular had raised doubts about
demand, but American consumers
still appear to be willing to spend.
The pulp and paper industry, together with the
chemical and metal industries and the energy
sector, accounts for 70 percent of all environmen-
tal protection investments in manufacturing, the
Swedish National Institute of Economic Research
reports in an analysis.
The analysis also shows that the companies invest
in both corrective and preventive measures.
FOR US
PAPER INDUSTRY GOODAT ENVIRONMENTAL
PROTECTION INVESTMENTS
The Swedish pulp and
paper industry invests in
green research.
IKEA INVESTINGBILLIONS IN NEW
STORES
THE FRENCH COMPANY Carrefour, Europeslargest retail chain, is opening a hypermarket in theBulgarian city of Varna on the Black Sea. The storewill occupy 100,000 square feet. Carrefour is leas-ing the space for 30 years from the Scottish propertydevelopment company Miller Group.
Carrefour to openhypermarket in Bulgaria
BightefutuRETAIL SECTOR
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[4*2007]SHAPE SCA*5
CHINAS DEMAND FOR recycled fi ber has increased
dramatically over the past seven years. This year, the country isexpected to import more than 20 million tons of recycled papercomponents, up from 3.7 million tons in 2000. The reasonfor the increase is an expansion of Chinas cardboard andpackaging industry. Chinese containerboard makers like NineDragons and Lee & Man Paper have strengthened their pres-ence in Europe with their own purchasing organizations. Theus, which was previously the main supplier of recycled paperto the Chinese, can no longer satisfy the demand for recycledcontainerboard in China. The increase in Chinese demandmainly affects Britain and the Netherlands, which now have topay higher prices for the raw material.PH
OTO:ISTOCKPHOTO
Polands retail sector grew 14.2percent in September compared
to the same period in 2006. De-
spite the sharp increase, growth
was still lower than the 16.5 per-
cent forecast. Analysts predict
that the strong growth in Polish
private consumption will slacken,the news bureau Interfax reports.
Reco roth Pandless than expected
SOURCE:SPCI/SVENSKPAPPERSTIDNING
RECYLED FIBER
IMPORTS TO CHINA
2 000 2 002 2 004 2 006 2 007
6.9
Million tons
12.3
19.6
21-23(est.)
3.7
CHINASC
OURING
EUROPEFO
R
REC
YC
LABLEPA
PER
GOOGLE, the pub-licly traded search engine,surprised the market when
a company representativesaid the company sees majorpotential for traditional printadvertising. Speaking to alarge gathering of apprecia-tive newspaper managers atthe Newspaper Associationof Americas annual meeting,Googles Tom Phillips, head
of the companys print adver-tising, said he saw a numberof opportunities in newspaperadvertising.
Print today is an under-valued medium, Phillipssaid, noting that newspapers
are consumed more intenselythan Web pages.
The dominant searchengines, Google and Yahoo,have both developed collabo-rations with traditional printnewspapers, and Microsoftsmsnhas expressed similarambitions.
BELIEVES IN PRINT
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SHAPE COVER
6*SCA SHAPE[4*2007]
AT LIDL
PORSCHES
PARKED
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according to the market
survey company AC-
Nielsen, 96 percent of
Germans shop at dis-
count stores. Aldi is the
leading chain, with an estimated 80 per-cent of all households in Germany shop-
ping there.Today, you even see Porsches in the
parking lot, says one young German.
Its no longer unattractive to shop at dis-
count stores.
At Lidl or Aldi, Germans buy basic
goods like laundry detergent, toilet paper,hygiene products or juice as well as fruit
and vegetables. For goods like meat and
fi sh, its a question of shopping at other
stores. And most people choose to go to
the local bakery for bread.
A few years ago, I went to the butch-ers whenever I wanted to buy meat and
deli items, says Albin Hessler of Aich-tal, outside Stuttgart, in southern Ger-
many. But today I dont do it as often.The quality and selection are really good
in most grocery stores.
Hessler and his wife Elisabeth go gro-
cery shopping every Friday. Usually theytravel a few miles from home to Edeka,
part of a grocery chain with a wide as-
sortment of goods. During the week, theystop by Aldi to pick up anything else they
need, but they buy their bread at the lo-
cal bakery.
At Edekas big supermarket, the fi sh isset out in elegant displays and the meat is
well trimmed. There are plenty of staff
members to provide help, and the light-
ing is pleasantly subdued. The selection
is huge and level of service is high.The contrast is considerable when you
walk into Aldis signifi cantly smaller store.
There is only a limited range of products
here, the stores all look the same, and
things go quickly in the checkout line.
There almost have to be two of you
when you go shopping, Elisabeth says.
The cashier rapidly enters the items,
The German grocery market is divided in two. Today, almost everyGerman shops at discount chains like Lidl and Aldi. At the same time, formany people, shopping at their local bakery and butcher shop is a given.And interest in quality is rising in the German market.TEXT PETRA LODN PHOTO FRANS HLLQVIST & DUNCAN SMITH
Albin and Elisabeth Hessler shop just as often at discount stores as they do at the well-stocked grocery chain stores.
[4*2007]SHAPE SCA*7
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SHAPE COVER
THESE LOW-PRICED chains, calleddiscounts in Germany, are grocery stores
with a limited number of items. The storesthemselves are rather small, and they often
DISCOUNT CHAINS FOR EXPORT
and there is little space beyond the cash
register, so you have to load your pur-
chases right into the cart. When you
pay, the cashier already has your changecounted out.
Aldi and Lidl offer more than just gro-
ceries. In the middle of the store are longaisles with baskets of clothes, toys andelectronic goods. Every week they pub-
lish full-page ads, and Elisabeth Hesslersays the stores often have lines outside
before they open on the day the new sales
fl ier comes out.The discount chains do incredibly
aggressive marketing, she says. But
you have to watch out. Not everything isas cheap as it seems. Their own brandsare inexpensive, but they also sell name
brands, and these may be more expensivethan in other stores. Customers probably
assume that everything is cheap becauseits sold in a discount store.
GERMANY HAS BEEN called a coun-try of bargain hunters. But recent years
have seen a break in the trend. Last fall,Mercer Marketing Consultants conduct-ed a survey of 2,000 shoppers. The sur-
vey revealed that Germans no longer see
themselves as bargain hunters but instead
place greater value on quality and a wideselection of goods. A full 38 percent, sig-nifi cantly more than in previous studies,
said selection and quality are important.Just relying on low prices will not be
enough in the future, says Sirko Siems-
sen, an expert on issues in the grocery
trade at Mercer Marketing Consultants.Grocery chains that have a wider selec-tion of goods may experience a resurgence
if they consistently make use of their com-petitive edge. But at the same time, they
should keep an eye on prices.Thats because price still comes fi rstin the survey. Half of those surveyed said
that price largely determines how satis-
fi ed they are when they go shopping.Turan Sevimli can provide evidence
that Germans intense hunt for bargainshas eased. He has run a small local gro-
cery store, Markt Ecke, for six years.Its not just about being inexpensive,
Sevimli says. Our store is good. I thinkthe reason for this is that more and more
German discount chains have done well abroad, to the point that
half of Europes largest grocery chains are German. In recent
years, Lidl, owned by the Swiss holding company Schwarz, has
expanded rapidly throughout Europe, and Aldi, the number two
discount giant, is not far behind.
.
At Turan Sevimlis store, customers can buy locally grown vegetables.
people want to support their local mer-
chant. I know my customers, I say hello to
them with a smile, we have small talk and
joke a bit. If an older shopper needs helpcarrying their purchases home, we cantake care of that. In stores that are part
of big grocery chains, the cashier doesnt
even look you in the eye.Sevimli buys a substantial amount
of locally raised vegetables, which cus-
tomers appreciate. Customers are mainly
singles, older people and consumers who
demand quality, and these target groups
are growing.
The discount chainsdo incredibly ag-gressive marketing.
But you have to watch out.
8*SCA SHAPE[4*2007]
sell products under their own brands.According to Frankfurter Markt-
forscher, discount chains are the only
grocery stores that report consistent
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[4*2007]SHAPE SCA*9
growth in sales. Aldi, Germanys lead-
ing discount chain, increased gross sales
by 4.2 percent in 2006 from the year be-fore. Each German household spent an
average of about 1,200 euros at discount
stores in 2006 63 euros more than the
year before. Schwarz had a highly suc-cessful 2006, according to the market
survey company Retail Group. It is esti-mated that Schwarz Group sales rose 12percent on an annual basis.
Discount chains sometimes have their
critics, but the fact is that customers seem
to like their low prices, quick service and
easy access. The discount chains are notgenerally willing to be interviewed, but
in a written statement, Lidl explained itssuccess this way: The cornerstone of our
success is simplicity. Our aim is to haveall our operations, all our work proce-
dures, run in a simple way, with top qual-
ity at the lowest prices possible.
0
10,000
20,000
30,000
40,000
50,000
60,000
70,000
80,000
I would never buy bread at a dis-
count store, says Elisabeth Hess-
ler of Aichtal, outside Stuttgart.
CarrefourF
rance
MetroGroupGer
many
TescoB
ritain
ReweGer
many
SchwarzGroupGer
many
EdekaGer
many
AuchanF
rance
AldiGer
many
LeclercF
rance
CasinoF
rance
80,000
64,000
6
1,000
45,000
45,000
39,000
37,000
36,000
32,000
30,000
6.0 4.7 4.5 3.3 3.3 2.9 2.8 2.7 2.4 2.2
SOURCE: PLANET RETAIL
FOTO:SCANPIX
FOTO:SCANPIX
Market share in Western and Central Europe (percent)
Approximate sales in 2006 (million euros)
FACTS / LIDL
Started in the 1930s as Lidl & Schwarz
Lebensmittel-Sortimentsgrosshandlung
Lidl is owned by a foundation controlled
by the founder Dieter Schwarz and his
family
Its headquarters are in Neckarsulm,
Germany
Lidl has some 6,000 stores throughout
Europe
Kaufl and and Handelshof are also part
of the Schwarz Group
FACTS / ALDI
Started as a family fi rm in 1913 in Essen.
Today owned by brothers Karl and Theo
Albrecht. Karl Albrecht is the richestperson in Germany with a fortune of USD
17 billion. In 2006 he was ranked 13th
on Forbes magazines list of the richest
people in the world
Aldi is short for Albrecht Discount
In 1961, the chain was divided into Aldi
Nord and Aldi Sd after a dispute over the
sale of tobacco products
There are about 1,600 stores in Germany
and some 1,200 stores outside Germany
in a number of European countries, the US
and Australia
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SHAPE COVER
n February, when six months still
remain before the fi rst beer is
poured at Oktoberfest, most seatshave been reserved. All thats left
are the 20 percent of places that
the city of Munich does not allow
organizers to book ahead.
The festival area, almost half a squarekilometer in size, holds 14 major beer
tents and a number of smaller ones with
a total of some 100,000 seats.
Peter Schottenhamel is the fourth gen-
eration of owners of one of the largest
tents. His great-grandfather started op-
erations 140 years ago with a small tentthat could seat 140 people. His operation
now seats 10,000, with 6,000 in the fes-tival tent and the rest outside. Schotten-
hamels tent is not among those where
breweries supply their own beer. Instead,
it is run by a privately held company that
can choose the beers it serves.This years Oktoberfest ended Octo-
ber 7. After a few weeks of well-deserved
vacation, planning will begin for next
years festival.
MEETINGS FOR
Oktoberfest in Bavaria,Germany, is not just achance to drink beer inlarge tankards. It has
also developed into apopular occasion to holda conference, meet cus-tomers and do business.TEXT PETRA LODN
10*SCA SHAPE[4*2007]
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New! Our most stretchy diaper ever.
www.libero.com
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shape cover
In comparIsons of various Euro-pean regions, two areas in particulartop the lists no matter how they are mea-
sured. Most people probably know one o
them, the southern German state o Ba-
varia. The other, Baden-Wrttemberg,its neighbor to the west, may not be as
Germany was reunifed
17 years ago, yet its still a
divided country when it
comes to growth and job
opportunities. Today the
country is split not just
into east and west but alsonorth and south.
well known but is just as successul.The two southern states have al-
ways been competitors, and theyre al-ways keeping an eye on each other, saysFriedrich Heinemann, head o corporatetaxation and public fnance at the Cen-
tre or European Economic Research inMannheim. The two are close ideologi-cally. Theyre both traditional strongholds
o the conservative Christian Democrats.
Many o the big international industrial
groups have their headquarters in south-ern Germany, and in Baden-Wrttemberg
there are also a large number o small and
medium-sized enterprises that are incred-
ibly successul.Stuttgart, the capital o Baden-Wrt-
temberg, has enjoyed tremendous growth
It takes about our weeks to takedown the tent, and in late November or
early December its time to start plan-ning or next year and taking bookings,
says Schottenhamel. Were usually ully
booked in early February. It wasnt likethis 10 or so years ago. You could stillmake a reservation up until August. ButOktoberest is growing bigger and bigger.
We could fll another 10,000 seats.Many companies invite their custom-
ers or employees to Oktoberest. I acompany plans a meeting or May and
invites 500 customers, perhaps 50 willcome, Schottenhamel says. I they plan
a meeting or Oktoberest, 490 come.Hundreds o dierent companies
come rom every industry imaginable.Some industries have a more noticeable
presence in certain years, depending on
where the most money is being made.This year saw a lot o it companies,banks and insurance companies. The
companies invite customers rom acrossthe country and even rom abroad. One
o Germanys largest banks invited 400
customers to the Schottenhamel tent.We also have hospitals that come here
with their sta. Thats another type o cus-
tomer that oten keeps coming back.Reserving a table doesnt cost any-
thing, but there is a commitment to buy
ood and drink. The minimum order istwo liters o beer and hal a chicken.
During Oktoberest, not a single hotel
room can be ound within a 150-km ra-dius o Munich. Oktoberest is the eventthat brings the most revenue to the stateo Bavaria, and many positive side eects
spill over to companies in the region, such
as stores and taxi services.
Im here every single one o the 16days Oktoberest is under way romabout 5:30 in the morning to 11 atnight, Schottenhamel says. The wait-
resses and other sta make good money,
but they work hard or their pay.Next year Oktoberest is celebrating
the 175th time its been held. On Sep-tember 20 its time to open the frst keg o
beer with the words Ozapt isch. Book
your seat in time i you want to be sure to
get a seat in one o the big tents.
oktoberfest
6.2 million visitors came to this
years Oktoberfest.
6.7 million liters of beer were
consumed.
12,000 people work during the
festival.
Visitors spend almost one billion
euros during the 16 days that Ok
toberfest is under way. Almost
half is spent in the actual festival
area, with about 200 million
euros spent on shopping in and
around Munich and 300 million
euros on hotels.
Oktoberfest originated with the
wedding of Crown Prince Leo
pold on October 12, 1810, when
he married Princess Therese. The
place on the outskirts of Munich
where the festival is held is calledTheresienwiese.
12*SCA shape[4*2007]
photo:gettyimages
Cannstatter VolksfestThe cannsTaTTer Volksest orStuttgart Beer Festival is held just out-side Stuttgart at almost the same timeas Oktoberest, starting a week later.While it is not as large an event as Ok-
toberest, its not all that much smaller.About our million visitors come over 16
estival days, consuming beer and ood at
long tables. There are also a large num-
ber o attractions in the estival area.The Volksest was held or the frst timein 1818. King Wilhelm o Wrtenbergthought the people deserved a estival a-
ter two years o amine brought about bya natural catastrophe in 1815. The esti-val was planned or the kings birthdayon September 28.
Money piling up in bavaria
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for a number of years. Daimler has itsheadquarters here, as do sap and Bosch,
but many small and medium-sized com-
panies in the electrical, engineering,chemistry and it industries have enjoyedamazing success. A new exhibition center
recently opened next to the airport, andby September it was already fully booked
through Christmas.
The rules for how research funds areallocated among the different states were
recently changed. Competition has inten-
sifi ed, and the latest allocations resulted
in the eastern states receiving no fund-ing at all while Baden-Wrttemberg and
Bavaria wound up with the bulk of themoney. This will naturally favor south-
ern Germany even more.
Bavaria and Baden-Wrttemberg com-
pete not just economically, but also in the
entertainment fi eld. Munich has its Okto-
berfest, but Stuttgart has the CannstatterVolksfest, a beer festival that is almost as
large. When the last beer was poured onthe evening of October 14, a record 4.5
million visitors had attended the festival
yet another sign that times are good.On October 3, 1990, the German
Democratic Republic ceased to exist, and
the Federal Republic of Germany nowconsists of 16 states. Integrating the east-
ern states into the Federal Republic is still
a costly process. Dizzying sums, over a
trillion euros, have been invested in uni-fying the country so far, but unemploy-
ment in the former East Germany is stilltwice as high as in the west.
People living in the west like to saythey feel solidarity with the east, but they
cant understand why its taking so long,
says Mai-Brith Schartau, a professor at
Sdertrn University College.
However, Heinemann of the Centrefor European Economic Research doesnt
think the differences between east and
[4*2007]SHAPESCA*13
west or between north and south willgrow. The eastern states are catchingup to the rest of Germany, although its
going very slowly, he says.
Despite major regional differencesand an international economy that has
been shaky this year, things are goingwell for Germany as a whole. After anumber of years of stagnation and an-nual gnp growth between 2001 and2005 of only about 0.7 percent, gnp in
2006 rose a healthy 2.2 percent over the
previous year.Nonetheless, Heinemann is concerned
that the government has lately expressed
a willingness to backtrack on the exten-
sive reforms carried out in the labor mar-ket, pensions and taxes. That may have
adverse effects on the economy, not im-
mediately, but over the medium term,he says.
GERMANY HAS A STRONG reputation
as an industrial nation with large compa-
nies like Siemens,bmw, Daimler, Bayer,basf and sap. But the country also has
many mid-sized and smaller industries.
Like other industrial nations, Germany
has undergone numerous restructurings,
but the industrial sector still constitutes
the backbone of the German economy.Germany has enormous exports, almostone trillion euros, and has been described
as an export champion. Roughly one-
third ofgnp goes to exports. Baden-Wrttemberg is the state that is most de-
BERLIN
HAMBURG
HANNOVER
DORTMUND
LEIPZIG
BONN
FRANKFURT
KAISERSLAUTERN
NUREMBERG
STUTTGART
MUNICH
In September
2007, unemploy-
ment in Germany
was 8.4 percent.
The lowest rate,
2.7 percent, was in
Biberach district,
Baden-Wrt-
temberg, and
the highest was
in Uckermark,
Brandenburg, in
the former EastGermany, 21.1
percent.
BREMEN
Schleswig-Holstein
Baden-Wrttemberg
Bavaria
Mecklenburg-Vorpommern
North Rhine-Westfalen
Bremen
Brandenburg
Hamburg
Berlin
Hessen
Niedersachsen
Rhineland-Palatinate
Saarland
Saxony
Saxony-Anhalt
Thringen
UNEMPLOYMENT IN GERMANYS FEDERAL STATES(percent)
4.7
4.8
14.9
13.8
12.3
8.7
7.2
14.8
9
6
13.9
15
12.1
7.8
8.4
8.1
SOURCE:STATISTIKDERBUNDESAGENTURFRARBEIT-ST
ANDSEPTEMBER2007(DZ/AM)
Germans arefeeling a new senseof pride abouttheir country.
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SHAPE COVER
pendent on exports, which also means
that it is more vulnerable than other parts
of Germany in the event of a major slump
in the international economy.
The German labor market can be de-
scribed as a social market economy in
which labor confl icts are rare. Through-out the 1990s, workers went on strikean average of 12 out of 1,000 workdays.
The corresponding fi gure for the whole
of the euwas 84 days.
Germans are feeling a new sense of
pride about their country. The black-
red-and-yellow fl ag now fl ies atop many
a fl agpole, something that never hap-pened before. Chancellor Angela Merkel
has received positive reviews in interna-tional contexts, and Germanys tenure
as EU president was a great success, aswas its hosting of the World Cup in soc-
GERMANY IN BRIEF
Capital and largest city: Berlin
Population: 82 million
Population density:
236 inhabitants/km2
President: Horst Khler
Chancellor: Angela Merkel
GNP growth (forecast 2007): 2.4 %
Infl ation (2006): 1.7 %
National holiday: October 3
Country code +49
TISSUE
Tempo, those highly familiar hand-
kerchiefs, is today one of SCAs tissue
brands. For many Germans, the Tempo
brand is synonymous with handker-
chiefs.
Were proud of having the Tempo
brand in our portfolio. Tempo was
along with other product names
included in the purchase of Procter &
Gambles European tissue operations,
says Bernhard Riede, vice president tis-
sue sales and marketing.
The acquisition was announced back
in March, but only in September did the
EU approve the deal.
The deal was closed on October 1
and we are gradually integrating the
operations. One step was taken on
December 1, when all systems were
transferred to SCA.
Its still too early to say what the
future will look like.
Were still doing the work to de-
velop our strategy for our new brands,
Riede says.
SCA IN GERMANYGermany is by far SCAs largest market.Sales totaled USD 1.9 billion in 2006, and some5,600 people are employed there.
He also says that the industry in gen-
eral is being pressured by higher costs
for things like energy and raw materi-
als, which SCA has to compensate for.
PERSONAL CARE
In Germany, the market for diapers and
sanitary napkins is dominated by retail-
ers own-brand products.
Roughly 50 percent of diaper sales
consist of own-brand products, saysSvein Ryan, regional head of personal
care, Central and Eastern Europe.
Compare this to Scandinavia, where
90 percent of diapers come from Libero
or Pampers.
SCAs sales of baby diapers in Ger-
many are between EUR 40 and 45 mil-
lion. Customers include Aldi, Lidl and
Drogeriemarkt.
There has been a sharp increase in
pant diapers, with growth of about 20
percent annually.
SCA has a market share for pant
diapers of between 65 and 70 percent,
Ryan says.Sales of TENA incontinence protec-
tion are also increasing, but mainly
among retailers. The German state has
become more restrictive on the sale of
incontinence protection by prescription
PACKAGING
SCA Packaging recently launched
X-tra Services in Germany, a concept
whereby customers are offered a com-
prehensive solution for packaging and
related services and operations.
The trend is toward more custom-ized solutions for customers with more
services being provided by our com-
pany, recalls Marc Stabernack, head of
marketing for Middle Europe.
The fi rst nine months of 2007 were
very good for SCA Packaging in Ger-
many.
Last September , we exhibited
at the major German packaging trade
show FachPack in Nuremberg with a
400 m stand which attracted a lot of at-
tention. This has meant really positive
feedback for our operations as well,
says Stabernack. Things are also going
well for the whole country right now,
both for businesses in Germany and for
exports, which are on the rise.
FOREST PRODUCTS
SCA Forest Products has no production
in Germany, but its an important mar-
ket for printing paper from Laakirchen,
Austria, and Ortviken, Sweden. In addi-
tion, one of the business areas largest
sales offi ces is in Mettmann, in North
Rhine-Westphalia.
cer. Obviously, Germans were proud
of their country before, but they didnt
show it, says Schartau of Sdertrn Uni-
versity College. Now they dare to ex-
press it because Germany has done things
that have played an important role in in-
ternational contexts.
14*SCA SHAPE[4*2007]
USD 719 millionEmployees: 2,919
USD 632 millionEmployees: 2,409
USD
225million
Employees
:277
USD 292 millionEmployees: 32
FOREST PRODUCTS
TISSUE
PACKAGING
PERSONAL CARE
Total sales: USD 1.9 billion Empoyees: 5,637(Dec. 31 2006)
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TREND
MILLIONS OF PEOPLE have done itwithout leaving any lasting impressionon history miming or playing air guitarto a favorite song in front of the mirror orat a party.
But trade the mirror for a webcam
and a handful of partygoers for that gi-gantic living room known as the Inter-net and the concept is suddenly loadedwith completely new potential.
Wei Wei and Huang Yi Xin know allabout it. These two Chinese studentsfrom the Guangzhou Arts Institute re-corded and edited favorite songs to en-tertain themselves and their friends us-ing their universitys intranet.
But the results were so comical thattheir enthusiastically mimed version of
the Backstreet Boys As Long As YouLove Me spread across YouTube and be-came a hit among the Web sites visitors.
At the same time, people at the Shang-hai offi ce of Ogilvy, the internationaladvertising fi rm, were on the lookout forsmart concepts to market their customerMotorolas inexpensive phones in China.
It took just a few weeks to go fromconcept to fi nished ad.
The only change the Motorola/Ogil-vy team made in the Chinese students
fi lm was the addition of a short break.One student gets a call on his cellphonefrom his girlfriend.
You barely see the phone, saysChristian Nord, a specialist in digitalmedia marketing at Ogilvys offi ce in
Stockholm. Its not the product thatplays the leading role but the guys. Thead was a huge success not just in China.
THE PHENOMENON of YouTube, aWeb site whose users upload materialtheyve produced themselves or their ownfavorite clips, has become the hottest In-ternet Web site for marketing which iswhy Google, the publicly held Web giant,paidusd1.65 billion for the site last year.
Companies and organizations are
now lining up to market themselves onYouTube which makes competition,already tough, very intense.
The audience is fussy, and yourecompeting with Saturday Night Liveand other material from the best enter-tainers in the world, dramatic videosfrom accidents and catastrophes, origi-nal home-grown productions and nu-dity, Nord says.
To get viewers, you have to give theaudience what they want.
Its a world ruled by nerds, activists and teenagers with a taste fornudity, accidents and heavy irony a place every marketer in the analogworld should have gone out of their way to avoid. But today companies
are lining up to be seen on the video Web site YouTube.TEXT MATTIAS ANDERSSON
PIONEERS ON
THE WEB
As early as the late 1990s, SCA
was on the Internet with a Libero
Web site for pregnant women and
the parents of small children.
Long before Facebook,
MySpace, here was a site that
mixed ads for baby strollers with
advice about breast-feeding.
We were able to get online soearly and be right on target be-
cause weve always had a dia-
logue with thousands of par-
ents, says Sofi a Hallberg, head
of communications for Libero.
Today, Liberos yoga video, with
its baby in diapers taking over her
mothers yoga class, is among the
favorite commercials on YouTube.
Libero.se has 150,000 unique visi-
tors a month and a social function
that goes beyond marketing diapers.
One relevant example where
SCA actively uses new meth-ods and channels in its market-
ing is the Tork revolution.
Basically, its a question of rebrand-
ing three different brands mainly in
the US into one global brand, Tork.
In a series of commercials, which
are also found on YouTube, the pa-
per revolution is being launched
using humor as its weapon.
See it for yourself: libero.se, you-
tube.com and torkrevolution.com
YOUTUBESEVENTH HEAVEN FOR AMATEURS
Wei Wei and Huang Yi Xin actingout infront ofthe webcam, andmarketingon YouTube begins.
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TREND
ENVIRONMENWORK SAVESMONEY
ACCORDING TO
the Stern report, theBritish governments review of the eco-nomics of climate change, about 14 per-cent of all emissions in the world comefrom the transportation of freight. Roadtransportation accounts for 10 percent.However, there are no statistics on whatpercentage of these road transportationemissions in turn comes from freighttransportation. An estimate based onEuropean conditions and statistics, withpersonal automobiles accounting for 60
percent of carbon dioxide emissions fromroad transportation and freight account-ing for 40 percent, suggests that roadfreight transportation accounts for some-thing on the order of 4 to 5 percent of allcarbon dioxide emissions in the world.
Greater growth leads to more freighttransportation, and there is no single so-lution to the carbon dioxide problem,says ke Sjdin, transportation special-ist at the ivl Swedish EnvironmentalResearch Institute. Rather, what is
needed here is a series of measures tobreak the trend. He thinks one of themost important measures for quicklylowering emissions is to reduce the useof fossil fuels like gasoline and diesel.
Today, carbon dioxide cannot beeliminated, so whats needed is the in-troduction of new technology and newfuels to reduce the emissions of fossilcarbon dioxide by freight traffi c, Sjdinsays. To speed this introduction, whatsneeded most of all is the establishment of
effective means of control, because thetechnical solutions already exist.Most countries in the world have signed
on to the United Nations goal of reducinggreenhouse gas emissions. The long-termgoal means in practice that global emis-sions must be cut in half by 2050.
In the business world, there has beengrowing awareness of climate problems,and an increasing number of companieshave not just adopted an environmentalpolicy but have also turned their words
European highways are carrying an increasingamount of freight, causing environmental changeswe see today. Businesses are focusing on the prob-lem of carbon dioxide emissions, which is reduc-ing the environmental impact and saving money.TEXT MIKAEL GIANUZZI PHOTO GETTY IMAGES
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[4*2007]SHAPE SCA*17
ing, albeit from a low level, and aware-
ness is increasing among customers that
their own companys actions have envi-
ronmental consequences.
For instance, we get more and morequestions from customers about ouremissions reports, he says.
IN GENERAL, Scandinavian com-
panies are at the forefront in terms of
environmental work, but those spear-
heading the movement are found inter-
nationally. Thats the view of Magnus
Swahn, a consultant in sustainable lo-
gistics at the company Conlogic.
The companies that have come far-
thest are those that have integrated en-vironmental issues with business logis-
tics, he says. Environmental work can
be very profi table if its done the right
way. For instance, Nike really pushes
the idea of optimal fl ows on the types of
traffi c that use the fewest resources.
As for transportation, there are great
environmental and economic gains to be
made in every type of transportation.Its a question of making transporta-
tion as resource-effi cient as possible,
Swahn says. It means fi lling trucks to
the max, lowering the speed of ships by
a few knots and making sure there is a
berth available for docking instead of be-
ing forced to wait to enter the harbor.He thinks eco-driving, which is a
method of driving cars in an environ-
mentally friendly way, and planning
can save 10 percent in operating costsfor rail transportation, but also for oth-
er methods of transportation.
The forest and paper industry start-
ed early and acted professionally, he
says. They realized early on that there
was big money to be saved by being fru-
gal with resources.
into deeds. In Sweden, companies like
Preem, Trelleborg, Sdra and Perstorp, in
collaboration with the Swedish Road Ad-
ministration, are now developing tools to
help transportation purchasers place de-
mands on their suppliers in terms of safetyand the environment. The focus of envi-
ronmental demands is on fuel consump-tion and emissions of carbon dioxide, ni-
tric oxides and particles. The work will be
ready in February 2008.
Ulf Hammarberg, environmental
manager at the logistics company dhl,
notes a considerable increase in the
number of customers who want help in
their environmental work. Demand for
the companys green services is grow-
MINIMAL ENVIRON-MENTAL IMPACT ISTHE GOAL
At SCA Transforest in Sunds-
vall, Sweden, a test is now be-ing conducted on synthetic die-
sel made from natural gas.
In the long term, we expect itwill be possible to produce synthet-
ic diesel from biomass, like forestwaste, and completely stop pro-
ducing carbon dioxide, says PeterEriksson, logistics and environmen-
tal manager at SCA Transforest.Erikssons goal is to reduce de-
pendence on fossil fuels and thus cut
the environmental impact of SCAsshipments to a minimum. Synthetic
fuel made from biomass producesno carbon dioxide, while the con-
tent of other substances that havean impact on the environment is less
than that of regular diesel. During thetest period, a truck is being driven
in-house between SCAs plants andfreight terminal in Sundsvall on syn-
thetic diesel. If the outcome of thetest is satisfactory, more cars will
run on synthetic diesel over the longterm. SCA Forest Products is test-
ing synthetic fuel on one of its lum-
ber trucks in the Sundsvall region.The advantage of synthetic
diesel is that it can be used in thesame engines as those using regu-
lar diesel, Eriksson says. The costis about one Swedish krona ($0.15)
more a liter, but there are loweremissions of most substances.
Seventy percent of all freight trans-ported by SCA is by sea, and trans-
portation here has been made moreeffi cient. Ships that sail fully loaded
from ports on the coast of northern
Sweden down to Germany, Britain
and the Netherlands return almost ful-ly loaded with items like return fi berpulp, which is recycled into produc-
tion in SCAs plants in Pite and Ume.We also ship freight for oth-
er companies, Eriksson says.Twenty percent of SCAs trans-
portation is by truck. Environ-mental work here involves steps
like optimally fi lling trucks.The remaining share of SCAs
freight, about 10 percent, is by rail.
Environmental work canbe very profi table if its
done the right way
AL
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TREND
PATENTS
AMONG THE 20 COMPANIES that
applied for the most patents in 2006,seven were in Asia, much more than inthe past, says Boel Lagerwall, head ofmarketing at Awapatent, one of Europesleading consultancy fi rms in intellectualproperty rights.
In both Eastern Europe and East Asia,where products from the West have longbeen copied illegally, interest in interna-tional patent systems is growing. Peoplethere are increasingly careful about fol-lowing international conventions be-
The number of patent applications is increasingrapidly in Eastern European countries and EastAsia. Since 2000 the number of applications fi ledin a year has increased 9 percent in South Koreaand 26 percent in China.TEXT PER QVIST
100 PATENTS A YEAR
At SCA, we apply for around 100
patents a year, with 50 or 60 of
these in Personal Care, says Paul
Winblad, head of patents at SCA.
We get temporary protection via
the Patent Cooperation Treaty for
30 months. Then we continue in a
few strategically important
countries.
SCA applies for patents in 14
countries a year on average. Simple
inventions that are easy to copy on
a broader level may be covered by
patents in 30 or 40 countries.
Expensive, complex inventions areprotected in only four or fi ve major
markets, often Germany, France,
Britain, the US and Japan or China,
and sometimes in Australia as well.
Nine out of 10 applications result
in a patent because these have been
so carefully prepared. Some 30
patent engineers and administrators
are employed full-time to handle
patent applications and related
fi elds like pattern protection.
cause they want to attract foreign capital,
and also because they are now more andmore at the forefront of developmentsthemselves and want to protect their ownproducts from illegal copying.
More Chinese companies productscan compete internationally. Amongthe big Chinese brands are Lenovo, theworlds third-largest pc manufacturer,andtcl, the worlds largest tvmanufac-turer by volume.
More than 200,000 patents were ap-plied for in China in 2006, most of them
by Chinese companies, Lagerwall says.In South Korea, 166,189 patents wereapplied for.
China says it wants to be in the lead inpatent applications in a couple of years,says Solgun Drevik, a product developerat scawhose name is on more than 50 ofthe companys patents.
A growing number of patent applica-tions in growth markets are being fi ledby Western companies, who now wantto protect their patents globally. Thesecompanies applied earlier for patentsonly in Europe and theus.
The us accounts for one out of threepatent applications in the world, almosttwice as many as second-place Japan. Eu-rope is still strong, with six of the top 10countries in terms of patent applicationsin 2006. Next, in descending order, come
Germany, South Korea,, France, Britain,the Netherlands, China,Switzerland andSweden.
Growth markets account for only 8.3percent of patent applications, but thenumber is quickly rising. Besides Chinaand South Korea, other countries experi-encing increases include India, South Af-rica, Brazil, Mexico and Singapore. moving east
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PROFILE
20*SCA SHAPE[4*2007]
Customers and employees favor companies with heart and
soul that stand for something more than just their products,
says MATS LEDERHAUSEN, who pursues investments that
do more than make money.
TEXT JONAS REHNBERG PHOTO EVA EDSJ/VOL
o Mats Lederhausen, a former head of
global strategy at McDonalds Corpora-tion, corporate social responsibility (CSR)goes way beyond positive image building:
All human beings have a responsibility
to help make our society better, and business is no
exception. I also think employees and customers
increasingly want their companies to be part of so-
lutions and not part of problems.Lederhausen recently left his senior management
position to devote more time to his newly founded
company Be-Cause. The company identifi es and
supports entrepreneurs who share his own visibly
heartfelt passion for businesses with a purpose big-ger than their products.
Entrepreneurs and companies have an important
role to play in todays world, he argues.
For better or for worse, businesses have be-come the most powerful institutions on this plan-
et, he says. More than half of the worlds 100
largest economies are businesses, and people all
over the world trust them more than they trustpoliticians.
AS A BUSINESS SCHOOL graduate with an en-
trepreneurial soul inherited from his father Paul,
who started the fi rst McDonalds franchise in thefamilys native Sweden in 1973, Lederhausen is con-
fi dent that CSR in no way precludes sound business.He believes the critical point of departure is that westop thinking about doing well and doing good as
mutually exclusive dimensions of life.
They are not, and we have to do both, he says.
We will never solve our challenges if the solution
is that companies go bankrupt in the process. The
only way forward is to fi nd small steps every day
to integrate good, smart, intelligent solutions that
help companies grow, people thrive and societies
prosper.
Globalization and climate change are two trends
t
A PASSION
FOR PU
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[4*2007]SHAPESCA*21
WHY A COMPANY SHOULD
ACT RESPONSIBLY AND TAKE
A STAND:
It is the right thing to do.
You attract smarter, betterand higher-energy people.
Eventually, customers will
reward you for it.
THE FUTURE OF CAPITALISM:
I passionately believe that if we
all made investment decisions
with a long-term perspective,
we would have a more human
and more attractive form of
capitalism. But we tend to be
short-sighted because we want
good deals quickly.
I think there are promising
tendencies. Many private equitycompanies, for example, adopt
a time frame of at least three to
fi ve years on their investments.
Since they are not public, they
can often disregard the short-
term impact of a decision.
Looking ahead, I would
hope we could introduce some
type of incentive that puts
a premium on wealth that is
created by creating real jobs,
real products and real brands
with lasting values rather
than short-term investing.
MATS ON :
POSE
For better or for
worse, businesses
have become the most
powerful institutions
on this planet.
NAME: Mats Lederhausen
AGE: 44
LIVES: Oak Brook, Chicago
FAMILY: Wife, Dr. Jessica
Lederhausen and their four
children 18, 17, 15 and 11 years old.
CAREER: Began his career with
McDonalds in 1979. The Boston
Consulting Group in London 1988
- 1990. Managing director and
joint venture partner for McDon-
alds Sweden 1990-1993. Head of
global strategy for McDonalds
Corporation 1999-2003. During
the next four years Mats played a
key role in shaping the agenda
that helped McDonalds complete
one of the most successful
corporate turnarounds in recent
history. McDonalds Ventures
2003-2006. His newly founded
company Be-Cause 2007-
www.be-cause.com
Our governments are too largefor the small problems of life and toosmall in spirit for the large ones.
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22*SCA SHAPE[4*2007]
ProfilE
stakeholders and become a place that employees
simply view as somewhere to spend time between
nine and ve. This will not inspire anyone, which
eventually will be elt by the customers.
Consequently, it is critical or a successul com-pany to have a purpose in order to inspire custom-ers and sta. I lost, how can you recover it? Start
by identiying your roots, says Lederhausen:
Most companies are born rom inspiration,
he says. Very ew entrepreneurs start businesses
just to make money. Rather, that initial spark was
oten the result o a need they saw people truly had.Unortunately, over time this idea gets buried in
bureaucracy and process and loses its power. My
job is to help companies awaken the power o thatoriginal inspiration again.
Lederhausen aims to pursue this task as heado the newly ounded company Be-Cause, which
invests in entrepreneurs who both make a proft
and contribute to society.
Im not really a corporate guy, refects Leder-
hausen. I preer being an entrepreneur than a bigshot in a big company, and I have always regard-
ed mysel as a kind o business philosopher whois more concerned with the whys instead o the
whats and hows.
In addItIon, he remaIns a senior adviser to
McDonalds, particularly on asset managementand corporate reputation issues such as CSR andbrand trust. This role is likely to touch on the
growing concern over whether the ast-ood in-
dustry contributes to obesity and poor health. Le-
derhausen acknowledges the problem but claimsthe initial ocus on ast ood was misdirected anda bit narrow.
Americans eat less than one percent o their
meals at McDonalds, he says. Simple math sug-gest that almost everywhere people eat contrib-
utes to obesity. McDonalds has actually done a
remarkable job in this area. I you look at their
menu today and all the products, inormation andinvestments they have made trying to help peopleeat better, I get really inspired.
As a visionary thinkerin the corporate world,
Lederhausen is certain to inspire a lot o people,
and his Be-Cause baby does its share. To inspire
investors and other stakeholders, he quotes Re-
naissance artist Michelangelo: The greatest
danger or most o us is not that our aim is too
high and we miss it, but that it is too low and we
reach it.
Organiza-
tions withoutsoul lackenergy andwill ultimate-ly ail toconnect withtheir mostimportantstakeholders
and becomea place thatemployeessimply viewas somewhereto spend timebetweennine and fve.
that have added tremendously to the complexity odoing businesses, particularly considering dier-
ences in stakeholder readiness or these challenges.Lederhausen agrees that the trends are as signifcant
as they are dicult.All countries operate rom dierent perspectives
with distinct habits, cultures and norms. Acting re-
sponsibly in one culture can sometimes be seen as
irresponsible in another, he says, yet he believes
globalization is a good thing.
Like everything else in lie we have to help oset
some o its problems, but we cant throw the baby out
with the bathwater by proclaiming it is all bad, he
says. Look at all the people in the world that have a
chance to permanently be lited out o poverty in thenext generation. Thats a beautiul thing.
In addItIon, globalIzatIon and techno-
logical advances have made companies almost com-
pletely transparent, says Lederhausen. He sees com-
panies taking on a bigger role because they have
to and because people expect them to.Our governments are too large or the small
problems o lie and too small in spirit or the
large ones, he says. People want organizations
to stand or something. They are hungry or real
companies that are both smart and eective but
also show they have a heart and soul and care about
more than themselves.
as a result, lederhausen says, more
and more people are looking toward companies
that demonstrate heart and soul by acting respon-sibly. From a strict business perspective, respon-
sible companies do better both in terms o sales
and in terms o being able to recruit better people,he argues, while admitting the correlation is hard
to quantiy.
The results o CSR activities are almost impos-
sible to divorce rom other normal business activi-
ties, he says. A company could or instance havea great environmental program that its customers
liked, but it could still have poor customer service.Ultimately, its hard to say which o the two actors
would have a bigger impact on nancial results.
Lederhausen argues that its vital or a company
to identiy its soul, which oten gets lost as small
companies grow into big corporations.
Any organization must be clear about who it isand defne its raison dtre, he cautions. Orga-nizations without soul lack energy and will ulti-
mately ail to connect with their most important
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[4*2007]SHAPESCA*23
SCA grows more than 80 million
new forest seedlings every year. It is an
investment in oxygen and raw material.
SCA is one of the worlds largestsuppliers of FSC-certifi ed products.
SCAs products mainly contain renew-
able raw materials.
No paper company in Europe collects
or uses more recycled paper than SCA.
SCA plants three trees for every
one felled.
All of SCAs publication papers are
produced from pulp that is bleached
without using any chlorine chemicals.
SUSTAINABILITY SOME
EXAMPLES FROM SCA:
Mats Lederhausen does
not see himself as a corporate
guy. He prefers being
an entrepreneur.
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24*SCA SHAPE[4*2007]
hlorine bleaching, sulfuremissions, foul-smellinggases over the years, thepulp industry has not had
the best environmental reputation. Thepast few decades, however, have seen
enormous progress, in terms of bothprocess improvements and additionalcleaning techniques to minimize harm-ful emissions.
A number of major efforts are now un-der way at sca. At strands kraft pulpmill outside Sundsvall, Sweden, a newtype of biological water purifi cation thatimitates a natural ecosystem has beenused for several years.sca Forest Products environmental
director Roine Morin describes the large
number of process improvements thathave been implemented since the early1980s. The most signifi cant change isa sharp decrease in water consumption.Traditionally, the main problem in pulpproduction has been getting lignin, thecompound that serves as glue betweenwood fi bers, to dissolve in water. In thepast, enormous quantities of water wereused to wash this out. The pulp pumpedinto the bleach plant had a high lignincontent, and chlorine was still used to
make the lignin water-soluble so it couldbe washed out from the system.
Before 1980, 120 cubic meters of wa-
ter were used for each ton of pulp pro-duced, Morin says. In an intermediatephase, when oxygen bleaching was intro-
duced, even though some chlorine wasused in post-processing, we managed tobring that fi gure down to 45 cubic metersper ton of pulp. Since 1996, when chlo-rine was completely eliminated, wevesucceeded in getting it down to 7 cubicmeters per ton of pulp.
ORIGINALLY, ONCE CHLORINE waseliminated, the idea was to make thebleach plants water system totally closed.
Because the washing water does not con-
tain chlorides, the water could in theorybe recycled and all the substances in theprocess retained.
But the low volume of water result-ed in such high concentrations of somechemicals that the compounds were nolonger water-soluble and caused scaling,
Morin says. Therefore, we had to openup the system again so we had to allow alittle wastewater anyway.
There were still marked improvements.
The adjustment to chlorine-free bleaching
led to sharp reductions in wastewater vol-
umes. Moreover, the water was less toxicthan before and more easily biodegrad-able. As for the lignins and other organiccompounds carried in the wastewater,there was still more work to be done. The
problem with these is that they consumeoxygen. Of course, major progress hadbeen made since the 1980s, when chemi-cal oxygen demand (cod) reduction inwater purifi cation was only between 30and 40 percent.
When oxygen bleaching was intro-duced, the results were better 50 per-cent ofcod could be eliminated, Mo-rin says. Now in the 2000s, we cant doanything more about solutions for bleachplants in terms of the processes involved
in production. Furthermore, the environ-mental requirements have become strict-er. So weve introduced a completely neweffl uent treatment technique.
He explains how the new effl uent treat-ment plant imitates a natural ecosystem(see illustration). The fact that the modern
effl uent treatment system handles suchlow volumes of water means its also eas-ier to control the process.
Before, there were these giganticponds of hundreds of thousands of cubic
TECHNOLOGY
In the past few decades, a series of environmental measureshave been implemented at strands pulp mill in Sundsvall,Sweden. Totally chlorine-free bleaching (TCF), a high degree
of system closure of the bleach plants white water and effectivebiological effl uent treatment have together produced thebest results for forest industry wastewater ever measured bythe IVL Swedish Environmental Research Institute.TEXT SUSANNA LIDSTRM ILLUSTRATION LEIF BJRNSSON
cFrom environmental culprit
to fi shs best friend
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meters, Morin says. It was a constantstruggle back then to maintain a balance
between all these forms of life, to get them
to work together in such large volumes.In the 1980s, the water fl ow from the
plant. was 100,000 cubic meters a dayand the retention time for effl uent treat-
ment was fi ve days. Today, the volumeof wastewater is down to 30,000 cubicmeters a day with a retention time of 12
STEP BY STEP
TO CLEANER
WASTEWATER
Biological effl uent treatment usingbacteria is in itself nothing new, but thetechnique has become more sophisti-cated as a result of several specializedsteps being introduced to break downharmful compounds. At strands pulpmill, a new type of combination process
called Multibio is being used. The ideais to start with individual cells and fi nishwith large fl occules and multicellularorganisms. In between is an importantstep that involves what is known as abiofi lm a fi lm of bacteria growing on aplastic surface which works as a kindof safety net. The biofi lm withstands dis-ruptions better than free bacteria fl oc-cules and provides protection againstsudden large-scale emissions of toxins.
hours, and cod reduction has improved
to 75 percent.This has a strong positive impact on
the surrounding environment since, after
treatment, the water fl ows into the Sunds-
vall Bay, he says.The wastewater has now been tested
by ivl. In one part of the investigation,
an analysis was done on how the wastefrom the pulp plant affects fi sh and crus-taceans. The species tested was the ze-bra fi sh, a common aquarium fi sh, andmeasures were taken of toxicity, rate of
growth, distribution by sex and abilityto reproduce. The investigation was car-ried out on two generations to determine
if there were any disturbances in second
generation. However, there was no hintof any such trend the zebra fi sh werehealthy and thrived in the wastewaterthroughout the testing period.
The conclusion is that in normal op-erations, no negative effects are to be ex-pected in the ocean environment wherethe waste runs out, Morin says.
ENVIRONMENTAL
MILESTONES FOR THE
PULP PLANT
*COD (chemical oxygen demand)
is one way of measuring the oxygen
consumed chemically.
2004Biological
effl uent
treatment
60
12
20
100
1996Totally
chlorine-
free(TCF)
1982Oxygen-
bleaching
1970sChlorine-
bleaching
COD* (kg per ton of pulp)
[4*2007]SHAPESCA*25
HOW IT WORKS
Air is blown into the collected
wastewater, forming an environment
that, once nutritive salts like nitrogen
and phosphorus are added, is opti-
mal for bacteria to begin growing on
their own. The bacteria then use the
oxygen-consuming compounds in
their metabolism, allowing the com-pounds to be broken down.
Similar processes with different
types of bacteria are repeated step
by step in the wastewater so that
the breakdown of oxygen-consum-
ing compounds is as complete as
possible.
In the fi nal phase of purifi cation,
there are multicellular organisms like
amoebae and bell animalcules. These
consume the smaller organisms that
have formed unwanted sludge fl oc-
cules in the process. As a result, there
is less excess sludge in the end.
Nitrogen Phosphorus
Air
Air
Air
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SCA INSIDE
26*SCA SHAPE[4*2007]
SORBENT HAS LAUNCHEDa new Australian campaign to
increase consumer awareness
of its Clean & Fresh moist wipes.
Sorbent already maintains
strong market leadership in the
moist wipe segment with a 66
percent value share, compared
with Kleenex Flushables at 34
percent*. However, research
indicates that consumer aware-
ness regarding the use and
benefi ts of toilet wipes con-
tinues to be the key to driving
growth in this segment.
As a result, the Sorbent team
has developed a new adver-
tising campaign specifi cally
targeting young families, who
are the key users of the prod-
uct and make up 50 percent of
moist wipe purchases**.
The campaign features a
four-week outdoor media
advertising schedule that
started October 28.
This initiative aims to cre-ate awareness among young
mothers about the benefi ts
of introducing Sorbent Clean
& Fresh wipes into their
childs toilet routine.
* Aztec Scan Data MAT 23/9/07
** Aztec ShopperView IHP Na-
tional Panel MAT 5/8/07
Sorbent Clean & Fresh targeting little bottoms
LIBRESSE
DESIGN PRIZE
GOES TO NORWEGIANCAMILLA NHU Quynh Bui, a Nor-
wegian, won the Libresse Nordic De-
sign Challenge. Camilla is 16 years
old and will see her design in all 180
stores of the jc apparel chain, locat-
ed across the Nordic countries.Libresse announced the compe-
tition last summer, which gave peo-ple in the Nordic countries who were
interested in design an opportunityto create their own pattern for pant-
ies. The response was huge. Nearly90,000 entries were submitted, and
roughly 50,000 young people tookpart in the Challenge which makesit the largest design competition ever
in the Nordic countries.
The kick-off for the competitionwas the launch of Libresse Design Edi-
tion, a collection of uniquely designed
packages for sanitary pads. Out of thiscame the idea of initiating a creative
competition for young people inter-ested in design. Last July and August,
people were able to use an advanceddrawing program on Libresses web-
site to design their entry by choosing
among templates, ready-made fi gures
and drawing free-hand.
The interest was fantastic andthe quality of the entries was con-sistently very high, says Margareta
von Renteln, who is in charge of Li-
bresse. With the high traffi c on our
Websites, Ive known for a long timethat our visitors were creative, but this
result shows weve found something
that affects many people.
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[2*2006]SHAPE SCA*27[4*2007]SHAPE SCA*27
SCA is forming a joint venture
company together with Jordan-
based industrial group Nuqul. The
new company, in which SCA will
own 50 percent, will manufacture
and sell feminine hygiene prod-
ucts in the Middle East and Egypt.
The operation will span 18 coun-
tries in the region. SCAs purchase
price for its 50 percent stake
amounts to USD 18.5 million.This joint venture gives us
a unique platform for entering
Egypt and the main markets of
the Middle East with our success-
ful feminine hygiene products,
says Gunnar Johansson, president
of SCA Personal Care. These
markets have immense growth
potential , and we expect to grow
our sales in the region substan-
tially. We aim to complement
Nuquls product range, sold under
the Cinderella and Lady Fine
brands, with our own product
range. Our ambition is to eventu-
ally extend our joint venture to
other personal care categories in
the future.
Nuqul is a leading industrial
group in the Middle East, withoperations that include tissue and
personal hygiene products. The
Groups annual sales total about
USD 400 million. Nuqul is the
leading supplier of tissue in the
region and has a substantial and
fast-growing hygiene business
with strong positions in all Middle
East markets.
SCA in joint venture in the Middle East
CORRECTION: In the last issuewe showed a picture of a paper
machine in Ortmann. It is situated
in Austria, not Germany.
change to the next size.
We are very proud of our new Li-
bero diaper, which makes everyday
life easier for parents at the same as
we make adaptable diapers for dis-
covery-hungry children who now canmove freely without leakage, says So-
fi a Hallberg, Libero brand communi-
cation manager at SCA Personal Care
in Gothenburg.A sneak preview of the product be-
gan in the end of August on YouTube.
The fi lm, featuring a baby leading an ad-
vanced yoga class for adults, can also be
seen on TV in the Nordic countries.
NEW
SUPER-
STRETCHY
DIAPERFRO
M
LIBERO
LIBEROS STRETCHIEST diaper
ever has been launched in Sweden,
and other countries are coming
soon. The new stretchy diaper was
designed by Karoline Lenhult, a
mother of three children, and has amore functional design. The diapers
are marked with a smart color codethat alerts parents when it is time to
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28*SCA SHAPE[4*2007]
IN NOVEMBER 2006 SCA signed
an investment agreement with lo-
cal authorities in Russia to build a
tissue mill in the city of Sovetsk in
the Tula region, south of Moscow.
The design and project work were
completed during the past year,
and necessary permits were ob-
tained. In September SCA signed
a land lease and received permis-
sion to build the mill. The Tula millplans to start production in the
fourth quarter of 2008.
Russia is a fast-growing tissue
market, with 9 percent annual
growth by volume. SCA intro-
duced Zewa to the market in 1997,
and now the brand is a market
leader in Russia with a 40 per-
cent share. SCAs manufacturing
facility in Svetogorsk, in the St.
Petersburg area, has no spare
capacity, and it currently imports
10,000 tons of tissue mother
reels each year to help meet total
annual demand of 55,000 tons.
The Tula region for the new
mill was chosen for its attractive
geographical position, well-
developed infrastructure and
interest and support from thelocal authorities in planning and
completing the project.
The mill will have an annual
tissue capacity of 30,000 tons
at fi rst, and the initial stage is
expected to cost 70 million euros.
The tissue produced in the mill
will be distributed and sold in
Russia, Ukraine and Kazakhstan.
SCA PACKAGING Nicollet wonthe Formes de Luxe Award for its
Rmy Martin cognac gift box in Oc-
tober. Winners were selected based
on the criteria of innovation, design
and technique, and the prize cer-
emony was held during the annual
Luxe Pack trade show in Monaco.
The competing products were
presented in Formes de Luxe
magazine, a bilingual pub-
lication devoted to luxurypackaging and issued six
times a year. All read-
ers of the magazine voted
for their favorite products
through a form published in
the special summer edition of the
Formes de Luxe magazine.
sca Packaging Nicollets entry in
the Formes de Luxe competition came
fi rst in the tui pliant (folded pack-
aging) category. The festive gift box
commissioned by cognac producer
Rmy Martin has a decorative pull-
cord closure and an original three-
way opening that folds out to reveal
the cognac bottle inside in a spectac-
ular way. The exterior sparkles, thanksto a holographic effect, and features
the black, red and gold of the
brand. The structural com-
plexity of this innovative
packaging required the useof special cutting tools.
sca Packaging Nicollet
provides advanced packaging
solutions for a vast range of con-
sumer products across numerous
sectors, including food and beverag-
es, luxury goods and detergent. sca
Packaging Nicollet covers the Euro-
pean market and produces more thana billion diverse packages a year.
PRIZE FOR WELL-
FOLDED PACKAGING
NEW MILL IN TULA
Mats Berencreutz (second from the left)
president of SCA Tissue Europe, visited
Tula on October 12, where he toured the
site of the future tissue mill and met the
project team and the SCA Russian and
Eastern management.
1
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[4*2007]SHAPESCA*29
SCA INSIDE
ONE
COLOR
FOR
ALLSCA TISSUES new XpressnapTabletop dispenser now comes
in 10 colors. John Riley, category
director of Tabletop, says the new
range of colors has made these
dispensers particularly appeal-
ing to schools and teams. They
can fi nd an Xpressnap Tabletop
in their colors. Whether orange
for the Syracuse Orangemen, blue
for the Duke Blue Devils or a team
color for a local high school, SCA
has a color that works for them.
The AD-a-Glance feature of
the dispensers is an added bonus.
With AD-a-Glance, the school
can print their school, team or
mascot on the insert and the dis-
penser is immediately customizedfor them, Riley says.
Xpressnap is a unique product
that promises customers a 25 per-
cent decrease in napkin use due
to its one-at-a-time dispensing
technology. Customers also touch
only the napkins they take, keep-
ing the process far more hygienic
than other systems.
MILL IN
ORTVIKEN WILL GROWSCA IS EXPANDING productionof mechanical pulp at Ortvikenpaper mill. The sek 800 million
investment will allow paper produc-
tion at Ortviken to continue to in-
crease, while providing signifi cant
quality improvements.
Through our newly establishedagreement with the Norwegian ener-
gy company Statkraft, we have nowsecured a long-term supply of electric-ity at a very competitive price that al-
lows for this investment, says Ken-neth Eriksson, president ofscaForestProducts. Since our most recent pa-
per machine went into operation in1995 we have increased productionby almost 50 percent through fi ne tun-ing and investments to eliminate bot-
tlenecks. We have now reached a levelwhere pulp production is restricting
the mills continued development.
The major items in the investment
are new refi ners with high capacity. It
is in the refi neries that the raw mate-
rial, fresh spruce pulpwood, is groundto pulp. But the investment also in-volves separating pulp productionand customizing it for the differentpaper grades.
Our present pulp mill producespulp for all our four paper machines,Eriksson says. This means we must
prepare the pulp in different ways, de-pending on whether we are produc-
ing newsprint or coated publication
papers.
With the new investment, the millwill be able to prepare the pulp from
the outset for the product for whichit will be used. This will lead to im-
proved product quality but also meansthat we will save money and other re-sources by doing it right from the start
instead of preparing the fi nished pulpfor each application, Eriksson says.
Work on implementing this invest-ment will start immediately. The newequipment is scheduled to be in oper-
ation by spring 2009.
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30*SCA SHAPE[3*2007]30*SCA SHAPE[4*2007]
CAMERA
30*SCA SHAPE[4*2007]
TEXTMATS FALCK PHOTOULF BERGLUND
IN THE FORESTS OF SWEDEN, the moose hunt
is an important annual event. In the north the seasonstarts on the fi rst Monday of September, while in thesouth it begins on the second Monday of October.The season then runs until January or February. Ofsome 250,000 hunters in Sweden, more than 90 per-cent are men.
Moose herds expanded considerably in Sweden inthe last century. In the 1940s, fewer than 20,000 ani-
mals were shot, while in the 1980s the number peakedat 180,000. Today some 100,000 of the estimated300,000 to 400,000 moose in Sweden are shot annu-
ally. scas forests alone are thought to contain some
30,000-40,000 moose. Low shooting rates along with
plenty of food due to large-scale clear-cuttings in 1960sand 1970s were the reasons for the strong growth in
moose herds.The king of the forest feeds on leaves, branches and
grass and can live to be 20 to 25 years old. Moose,also known as European elk, are the largest animalin Swedens forests, weighing up to 550 kg (1,200pounds) and reaching a height of 2 meters (6.5 feet).Moose are found in the northern parts of NorthAmerica, Asia and Europe. In Latin, the Swedishmoose is known as Alces alces, from the Greek wordalke, which means strength.
KING OF THE FOREST
O e unt e
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[3*2007]SHAPESCA*31[4*2007]SHAPESCA*31
Plans for the days fi rst drive are drawn up. The hunting guide reviews which
stations are to be manned and where the drivers will walk. After picking
from a deck of cards, the hunters take turns choosing stations.
Early in the morning on the fi rst day of the hunting season, hunters creep to their stations. In the dawn hours,
when the moose are on the move, the hunters wait for an animal to come within shooting distance.
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[3*2007]SHAPESCA*33
Hunting involves a lot of waiting.
Using two-way radios, the hunters are
in contact with each other and with the
drivers. As soon as someone sees an
animal, everyone else on the
team is informed.
[4*2007]SHAPESCA*33
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SHAPING A VIEW
GREAT OPPORTUNITIES
Jan JohanssonPresident and CEO, SCA
WE HAVE A UNIQUE CUSTOMER
OFFERING THATS AN INTEGRAL
PART OF OUR LIVES SIMPLE,
INDISPENSABLE PRODUCTS THAT
IMPROVE OUR EVERYDAY LIFE
ver the next decade, an estimated one bil-
lion new consumers will have a disposableincome of over usd 5,000, the dividing
line at which individuals generally begin to
buy products for their own well-being.
Thats good news for sca.
For me, having just taken over as ceo, it makes me al-
most giddy to think of the great opportunities that sca
has for growth in the world. We have a unique customer
offering thats an integral part of our lives simple, indis-pensable products that improve our everyday life. We have
strong positions in markets throughout the world. Im
thinking of our world-leading position in incontinence
protection with tena, our very strong regional positionsin childrens diapers like Libero, Drypers and Pequenin,
or sanitary protection like Libresse, Bodyform and Saba.
scas acquisition of Procter & Gambles tissue operations
will increase the rate of branded sales in Europe of facial
tissue, paper towels and toilet paper.
These are all important opportunities for growth for us.
BECAUSE WE WILL GROW. In my fi rst meetings with
colleagues, the stock market and the media, I have been
clear in announcing that growth, both in sales and profi t-
ability, is high on the agenda. Speed is another item. Over
the last few weeks, Ive visited our business areas and spo-ken with many fellow employees. Ive experienced a very
solid sense of competence and professionalism in all fourbusiness areas. With this as a starting point, I believe we
can raise the bar in terms of speed to the market.
The third item on my agenda is simplicity. To be quick,
we have to simplify our internal procedures and operat-
ing systems so that we ensure energy is spent on the right
thing: The customer! The consumer! Growing! Creating
profi tability!
One of my most recent visits to our operations was to
34*SCA SHAPE[4*2007]
oForest Products. sca has always considered its forest hold-
ings to be strategic in nature, something we want to havecontrol over. We have great advantages in todays climate
of Russian export duties and a supply shortage. Timber
prices have increased dramatically, and were seeing that
more and more people in the world now share our posi-
tive view on forest holdings. This gives us a secure fl ow
of raw materials, is a renewable resource and helps absorb
carbon dioxide.
In recent years, sca has taken decisive steps in shift-ing from being a commodity supplier to a company with
high-quality value-added products, a company based on
preferred partners. This is a shift I greatly respect and I
will promote further.Keep an eye on our development!
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A revolution has begun. Custodians everywhere are fghting the clean fght
against the legions o bacteria that invade washrooms, contaminate patrons
and generally gross everyone out. Find out whos winning.
Eddie vs. the Germs
The only good germ is
a dead germ!
Eddie The Sterilizer Mundy, Custodian
SCA Tissue is a leading provider o napkins,
towels, tissue, wipers and dispensing systems
or the Away From Home tissue market.
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