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    6

    Content N 2 2010

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    1820

    Where will you find a 20-story skyscraper made ofwood? Which Swedish city is one of the five mostsustainable in the world? Find the answers inShape upspages.

    The process of finding new ideas is not what it usedto be. Today, companies get help in developing newproducts from the most unexpected sources.

    Africa faces a kick-off in a double sense: Besidesthe soccer World Cup, the continent is in an econo-mic lift-off. Also, new countries are at risk of beinghit by the obesity crisis of the Western world.

    David Gottfried is an environmental capitalistwho aids construction companies with sustain-able thinking. He believes that the billionaires ofthe future will be green.

    In Germany, a nearly 40-year-old paper machinehas set a record in paper production. Read abouthow SCA in Neuss made that happen.

    Shapepaid a visit to SCAs Annual GeneralMeeting in Sundsvall and took a peek inside thegiveaway bags.

    The Bollstabruk sawmill has a long history. Itsmansion has seen people come and go over theyears, but one tenant remains.

    Despite increasing commodity prices, SCA

    increased profit during the first quarter.

    14

    31

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    Brzi ad Sween

    challenges

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    DON'TERASE

    !

    FI NANCESCHOOL

    billion SEK:The value of

    Swedensnet export of

    forest productsin 2009. For

    manufacturingproducts

    the numberwas 66 billion.

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    n

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    New ideas are critical to todays global companies infinding new business opportunities. The road

    to new innovations is becoming increasingly varied.More and more ideas are emerging through collaboration

    with external designers, researchers and customers.

    of the loneresearcheror research team hatchingnew and revolutionary prod-ucts in utmost secrecy is closeto obsolete. In recent years,

    the development of new technology,new consumer products or fashionapparel has often taken place out-side the research and developmentdepartments of the companies produc-

    ing them. Open innovation exter-nal knowledge collaborating within-house resources is becoming evermore common. H&M creates new cus-tomer experiences by offering extremedesign la Jimmy Choo. SCA is usingits worldwide network of researchers todevelop new product solutions.

    The search engine company Googlelets its users help in editing, changingand updating its products and oftenreleases products that are not fully

    worked out. Companies are expandingtheir opportunities by taking in know-how from the outside, but open innova-tion may also involve giving ideas thatwere dreamed up in a companys R&Ddepartment the chance to grow anddevelop outside the company or hav-ing other companies use them in theiroperations.

    an adjunctprofessor and executive director ofthe Center for Open Innovation at theHaas School of Business at the Univer-sity of California, Berkeley, coined theterm open innovation and has fol-lowed its development over many years.He believes a more open approach toideas and exchange in research has con-siderable advantages.

    Its a model that increases the valueand impact of the R&D a company

    ovat onOpn

    t

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    already has, Chesbrough says. Itsnot a prerequisite for development, butthose who use open innovation increasethe odds of meeting their objective.

    Nicklas Lundblad, who is stationedat Googles head office in MountainView, California, and works with pub-lic policy and international researchcontacts, is a strong supporter of anopen innovation process.

    Innovation is no longer an internalmatter for a company but rather a net-work process between the companyand the community, Lundblad says.

    for exam-ple, companies once built somethingremarkable that gave them competitiveadvantages for years to come. Today,Lundblad says, a comparison can bemade between innovation and evolu-tion. Innovation, like evolution, is an

    Google is continu-

    ously working tocreate an innova-tive corporate cul-ture, all in order tomaintain the feel-ing found in a tiny

    start-up company.

    incredibly wasteful process. Sea tur-tles lay a million eggs but only a thou-sand or so get as far as the water. Itsthe same with ideas.

    Its the challenges in our environ-ment that give rise to inventions, andideas and products are developed muchmore rapidly under intense competi-tion, says Lundblad.

    Gmaile-mail tool as an example of how com-petition gives rise to new ideas. Cus-tomers here have maximum freedom.In just a few minutes, they can down-load their e-mail and then switch toanother e-mail service because custom-ers cant be locked into the architecture

    the company has to develop servicesthat are really good.

    Google is continuously working tocreate an innovative corporate culture,all in order to maintain the feeling foundin a tiny start-up company. Employeesare encouraged to spend 20 percent oftheir working hours on something otherthan their actual duties.

    The fact that people can spend oneday a week on their own work doesntmean they have time off, Lundblad

    says. Everyone provides an account ofwhat theyve done, but in return theyreallowed to be innovative.

    Even though in the 12 years of itsexistence Google has grown into a cor-poration with offices around the globe,the image of Google as a great innovativeplayground has been preserved. Howcan this kind of innovative corporate cul-ture be translated to other industries?

    Not only do they make a product, butthey also have to think about the prob-lem it solves that babies cannot use atoilet. They go from creating a prod-uct to solving a problem, so they can askthemselves what other solutions thereare for this problem. It may mean thatcompletely new things are developedor that something that already exists isimproved.

    Regardless of whether they do likeGoogle and set aside time for innova-

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    COMPANIES THAT SPENT THE MOST ON R&D IN 2008

    tion, which is fairly common in the US,most people spend a large part of theirtime thinking about things that arenttheir immediate task, says DariushGhatan, founder of the consultancyfirm Googol, which works with innova-tion and corporate venturing.

    Its a question of channeling thisenergy in a direction where the organi-zation has an ability and interest inoffering solutions, so that it will becommercially viable and also captureand develop the flow of ideas in the

    right direction, Ghatan says. Other-wise its easy to spend energy on thingsthat never generate value.

    An idea box in the cafeteria is by farthe worst way to capture these ideas,he says. Whats needed is a clear, devel-oped strategy that encourages employ-ees, as well as customers, suppliers andother interested parties, to come upwith good ideas.

    The traditional research mind-set still exists in companies to far too

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    large an extent, Ghatan says. Themarketing and research sides are tooseparate, which means that many com-panies have a poor understanding oftheir customers needs and how thesecan be satisfied. If these are integratedculturally and structurally in the inno-vation process, amazing value can beextracted.

    successful compa-nies work more with developing theirbusiness models than before. He men-tions Apples iPod as an example. Itwasnt the first MP3 player or the best.It didnt have the most functions andwasnt the cheapest. Still it was the one

    that sold the best.It wasnt because of any killer

    advertising but because Apple launchedits iTunes at the same time, which madeit easy for customers to build up theirmusic libraries and manage their musicdigitally, Ghatan says. The combina-tion of a new product launch, new busi-ness model and customer experiencewas an enormous success.

    Other examples can be found in thecellphone industry. While engineers

    competed to create advanced functions,it turned out that the technology was oflittle interest to the general public.

    design, Nokia captured 40 percent ofthe market, which was an almost invin-cible lead, Ghatan says. Now Applehas grabbed a big market share withits iPhone. They managed toget paid by operators whileusers developed solu-tions for one another,all according to a busi-ness model in whichApple has now com-mercialized its rela-

    tions.Open innovation

    carries certain risks. Oneimportant question is who ownsthe license or patent.

    Intellectual property has to bemore tightly linked with the innovationprocess in an open innovation companythan it normally is, Chesbrough says.There are all kinds of licensing solu-tions. The problem is when seven peo-ple come up with the same idea.

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    of new kindsof boxes and packaging solutions aredesigned for SCAs customers acrossthe globe. That accounts for a lot ofcreativity, but the really cutting-edgeinnovation is going on in Brussels.

    Heres where we develop the pack-

    aging concepts that customers dontknow they need yet, says Europeandesign director Wim Wouters, whoheads SCAs Innovation Center inBrussels, which is three years young.

    Industrial designers, artists andarchitects from different parts of theworld work in collaboration with localdesign centers to predict future scenar-ios and develop concepts that wont beused for years to come.

    Here in Brussels, we work with

    developing concepts that our custom-ers dont know anything about yet butcant afford to be without, Wouterssays. Our customers are increasinglylooking for advice and inspiration, andwe want to be the packaging supplierthat can provide this service.

    In the future, it will be more andmore important to look at the areaspackaging is being delivered to, hesays. Many packaging solutions aresold in retail stores. If we want to be

    better, the packaging has to work evenbetter in a store environment.

    To find new solutions, SCA is work-ing in close cooperation with custom-ers in different industries. Togetherthey define the strategy for collab-oration, both for the short and long

    term. Its a new way of working in theindustry, Wouters says.

    ofthe future look like? Recyclable, intel-ligent, store-friendly and customer-friendly, he says.

    That may not sound so revolution-ary. But when Wim Wouters talksabout future innovations, they involvepioneering ideas such as entirely novelconcepts for retail sales.

    Its a bit like a concept car, he says.Its there to be looked at, but you cantoperate it because the fuel thats neededhasnt been developed yet. Yet the car isthere and expands your way of think-ing and allows you to take small stepsforward and continue working withsome of these ideas.

    For the second year in a row, SCAhas challenged design students fromaround the world to find new pack-aging solutions. The test in its Design

    Challenge 2009 was to create a newchocolate experience in-store. This

    years challenge goes under the head-ing fat-free packaging, where theobjective is to develop packaging that isclose to nature, where as in nature everything has a function.

    yourdesign work, but somewhere in theinnovation process you have to open upto new ideas, expand your ideas so thatyou dont end up with tunnel vision,Wouters concludes.

    Brussels is thinkingoutside the box

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    Brokers provideresearch know-how

    SCA hasbeen working with innovation inter-mediaries knowledge brokers who

    procure knowledge in fields in whichSCA lacks skills or know-how. The sys-tem is simple. Lets say that SCA wantsto increase its knowledge about sub-stances that absorb odors or is look-ing for a substance that has specific anddesirable qualities for a given product.

    We outline the technical essentialsof the question that were looking foran answer to, says Bengt Jrrehult,Director of innovation and knowl-edge management for SCAs Personal

    Care products. Without identifyingwho is asking the question, the ques-tion is sent out to selected segments ofa worldwide network of 180,000 sci-entists. Researchers who think theyhave answers can sign a confidential-ity agreement and then access moredetailed information about the issue.

    This mainly concerns questionsin pure physics and chemistry, and wehave had between 150 and 650 research

    groups providing answers to each ques-tion, Jrrehult says. Weve sent out 25questions so far. But we only pay those whomanage to provide a solution to a set of pre-

    determined conditions, and thats abouthalf of them.So far, collaboration with the knowledge

    network InnoCentive in Boston has led toSCAs R&D finding completely new materi-als and analytical methods.

    Sure, its fun to find out things on yourown, but it can be more important to buildon what others have done, Jrrehult says.It requires a bit more humility and evenmore intelligence.

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    Absorbency and discretion are in this season; TENA

    introduces the first Ultra T hins for moderate and

    heavy bladder protection. A revolutionary new core

    fits our super absorbent microbeads into a smaller

    space. Its heavy protection in a thin pad. For a free

    sample call 1-80 0-781-3298 or visit www.TENA.us

    Found in aisles where bladder control products are sold. Consult your doctor about bladder control problems.

    TENA (formerly Serenity) is a registered trademark of SCA Hygiene Products.

    moderate and heavyabsorbency

    thin designfor comfort

    advanced odorprotection

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    When the financial crisis hit the global economy, Africawas quickly presumed to be the biggest loser. But predictions

    of misery came to naught, and the continent is nowpoised for a kick-off and not just in soccer.

    Kic-of

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    Africa has more

    to cheer about than the soc-cer World Cup taking place inSouth Africa. Today the conti-

    nent is one of the fastest growth mar-kets out of the economic starting blockfollowing the financial crisis. OnlyChina and India have recovered morequickly.

    In 2009 as well, when the financialcrisis cast a chill on the global econ-omy, growth in Africa chugged alongat a respectable 2 percent.

    Over the next few years, the Interna-tional Monetary Fund predicts a rapidrecovery: 4.5 percent this year and 5.5percent next year.

    If there is any part of the globe withthe potential for record growth overthe next few years, its Africa, SouthAfrican President Jacob Zuma saidrecently. The opportunities range

    from mining operations to investments

    in infrastructure to manufacturing andthe service sector to a growing Africanmiddle class.

    If visions of an Asian-style growthmiracle on the African continent werepreviously dismissed as the product ofnational leaders enthusiasm for castlesin the air, many analysts today are pre-pared to conclude that Zuma is right.

    While a recovering Chinese appetitefor raw materials is one explanation forthe expanding economy, there are also

    local factors. Two-thirds of Africastotal economic growth over the lastfew years has come from domestic con-sumption. The service sectors shareof GDP in Africas 10 largest countriesis 40 percent, not much lower thanIndias 53 percent share.

    It is a tragic reality that the worldsimage of Africa is still mainly one ofstarvation, bloody civil wars and cor-rupt despots. Yet there is also a generalinability to discern the many nuances

    of a large and multifaceted continent. 1 billion peoplelive in abject poverty. But the continentalso has a middle class of 300 millionfairly well-off individuals.

    When the American economistVijay Majahan gathered material forhis book Africa Rising(2009), theaim was to provide a new and differ-ent image. But many of the Africans he

    t

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    encountered were resigned to a world

    that is half-blind.The most difficult thing was to get

    people to do interviews, Majahan says.They simply could not believe that any-one from an American business schoolwould be interested in positive aspectsof development in Africa. They wereonly used to Americans who came eitherproviding aid or reporting on violence.

    But a growing number of interna-tional companies are discovering thecontinents potential. While foreign

    direct investment fell by 20 percent glo-bally in 2008, it reached a record highin Africa.

    one study, 954 pub-licly traded African companies had areturn on capital between 2000 and2007 that was 65 percent higher onaverage compared with similar com-panies in China, India, Vietnam andIndonesia.

    By far the continents brightest star

    is South Africa, where per capita GDPis significantly higher than in eitherChina or India.

    Moreover, unlike China, SouthAfrica is a democracy with fairly firmground rules for international compa-nies. The worlds 18th-largest stockexchange is located in Johannesburg.

    The people of South Africa and theirleader do not lack for challenges on theroad ahead. Unemployment is high,over 30 percent, and widespread crime

    is a national trauma. Major economic

    disparities from the apartheid era per-sist, creating bitterness and a breedingground for controversial figures like

    Julius Malema, the leader of the Afri-can National Congress Youth League.

    While the world has been fixated pri-marily on Jacob Zumas many wivesand illegitimate children, the SouthAfrican president has pursued policiesthat have made thrifty use of economicresources. Unlike the US and a numberof European countries, South Africa

    has not weathered the crisis by generat-ing enormous and growing deficits.When the kick-off for the first World

    Cup game takes place on June 11 infront of a global audience of billions,it may well also be the first chapter in anew and brighter story from Africa.

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    The worlds population is growing fatter and fatter.Countries that never had problems with an overweight population

    before may be hit by an obesity epidemic.

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    global obesity epi-demic could be on thehorizon, the WorldHealth Organization(WHO) has warned,

    as obesity is increas-ing alarmingly in industrial and somedeveloping countries.

    Official statistics indicate that theworlds population is becoming fat-ter and fatter, but also that the obes-ity rate varies from country to country.WHOs most recent figures show thatover half the population in places likeSamoa and other Pacific islandssuffer from obesity. Kuwait in theMiddle East comes in second, fol-

    lowed by several countries ineastern Europe. According tothe European Associationfor the Study of Obesity,almost a third of all peo-ple in the EU are overweightand more than one in 10 areclinically obese.

    that had ne-ver been associated with obe-sity and overweight before, it

    may be somewhat of an epi-demic, says Arvo Hnni,a doctor who specializes inobesity at Uppsala UniversityHospital in Sweden. However, newdata indicate that the number of over-weight people seems to be leveling off,at least in western Europe and the US.This is true especially among youngerpeople and school-age children. Themajor problem is that those who are al-ready fat are getting even fatter. This is

    a group that is also at risk of sufferingmedically.

    The causes of overweight and obesityare numerous and complex. Hereditaryfactors play a part, but the sharp rise in

    recent decades is not due to changes ingenetic makeup, researchers say. Ele-ments in our environment have changedradically. The most likely cause is a sed-entary lifestyle in cars and in front ofthe computer and TV combined withfatty foods and sugary drinks. Obes-ity itself is not a disease, but being seri-ously overweight increases the risk and the cost to society of several

    major diseases such as cardiovascu-lar ailments, high blood pressure,

    stroke, certain types of cancerand type 2 diabetes. Urinaryincontinence is attract-ing growing attention as anobesity-related problem.To stem the obesity epi-

    demic, scientists around theworld have proposed a numberof measures, including moreresearch and wider dissemina-tion of information, particular-ly to help children and young

    adults lay the foundations fora healthy lifestyle. A growingnumber of people with a high

    body mass index are also un-dergoing gastric bypasses, an operationthat drastically shrinks the stomachand helps reduce weight significantly.

    With an operation like that, otherproblems can also be remedied, suchas urinary incontinence, which oftenaffects people who are overweight orobese, Hnni says.

    Urinary incontinence is

    attracting growing atten-tion as an obesity-related problem.

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    ee geenDavid Gottfried, founder of the U.S. GreenBuilding Council, is proving that sustainable practicesand enviable profits go hand in hand.

    come from business, Gottfried says. Idecided to take on the Earth and howwe make things, but not take on capi-talism.

    Capitalism is the delivery mecha-nism for the new Earth, he adds. Butan embedded rule is if youre not green,

    youre not going to do well. If yourevery green youll make billions.Gottfried is one of the worlds preem-

    inent consultants on sustainabilitystrategy for builders, corporations andgovernments. Hes one of the expertsin SCAs Tork Green Hygiene Council.His client list reads like a Whos Who ofinternational corporations.

    Southern California, theconsultant says his love of nature began

    when he backpacked in the SierraNevada mountains as a boy. I fell inlove with Yosemite and trees, he says.His environmental awareness wasraised at Stanford University, wherehe studied engineering and resourcemanagement and took solar energyclasses from Professor Gilbert Mas-ters. He talked about the Earth and noone, even at Stanford, back in the 80stalked about the Earth that much,Gottfried recalls. He woke us up.

    no longergoes towork every day in designer suits, zipsaround in a flashy BMW or conductsbusiness in a luxuriously appointedoffice all the trappings of his earlycareer as a high-powered real estatedeveloper.

    These days Gottfried, 50, pursuesconservation rather than conspicuousconsumption. The founder of the U.S.Green Building Council wears jeans towork, bicycles to the office and runs histrio of businesses out of a sunlit suite inBerkeley, California, with bare concretewalls and a desk made of wheat board.He lives with his wife and two daugh-ters in a 1915 Craftsman bungalow,remodeled to the highest environmentalstandards, and drives a City Car Share

    vehicle, which he checks out wheneverhe needs private transportation.For all his environmentalist sensibili-

    ties, however, Gottfried remains a cap-italist through and through. He makeshis living showing large corporationshow they can profit from green strat-egies, and he sees no conflict betweenmaking money and doing the rightthing for the planet.

    I would say Im an environmen-talist but Im not a tree-hugger, and I

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    Environmentalism took a back seatto consumerism after college, however,when Gottfried joined a booming realestate development firm in Washing-

    ton, D.C. He recounts those years in hismemoir Greed to Green: The Transfor-mation of an Industry and a Life. Whenthe real estate bubble burst in the early1990s, though, he began again lookingfor ways to promote environmentallyfriendly construction practices.

    Building Coun-cil grew out of his conviction that thebest way to create standards to encour-age sustainable buildings was to bring

    together environmental groups, archi-tects and building materials manufac-turers in a nonprofit coalition. It beganin 1993 with a meeting of 60 firmsand has grown to more than 18,000member organizations. Perhaps itsmost significant accomplishment is thevoluntary Leadership in Energy andEnvironmental Design (LEED) build-ing rating system, which set stand-ards for construction and design. In2002, Gottfried also founded the

    World Green Building Council, whichnow includes representatives from 66national green building councils.

    Sustainable buildings sit lightly on

    the Earth. They conserve water andenergy, reduce greenhouse gas emis-sions and improve interior air quality.They use renewable materials and min-imize waste by reusing and recyclingwherever possible.

    One of the most impressive buildingsGottfried has worked on is the DavidBrower Center, where his offices andthe headquarters of many environmen-tal and nonprofit groups are located.The building, named for a prominent

    American environmentalist, generateselectricity with photovoltaic cells, col-lects and reuses rainwater, and controlslighting to use natural daylight whenpossible. It is expected to earn LEEDPlatinum, the highest possible rating.

    Although Gottfried began his con-sulting business in 1994 with a focus ongreen building, he later branched out tolook at green strategies for every aspectof running a business. More recently,he established Regenerative Ventures, a

    separate company devoted to partner-ing with 10 clean technology compa-nies in the building industry. He investshis expertise as a member of the com-

    panys advisory board in return forstock in much the same way that ven-ture capitalists invest money.

    he took the partner-ing concept a step further when helaunched the U.S. Regenerative Net-work, which will bring together a smalland select group of environmental lead-ers in the building industry to sharebest practices and introduce them tohigh-profile customers looking for sus-

    tainable products and services. Thegoal is to spread environmentally sen-sitive products throughout the marketand help its members deepen their sus-tainability performance.

    Proving the business case for truesustainability has become Gottfriedsmission in life. I believe the billion-aires of the future are going to be deepgreen, he says, and Im going to workmy darnedest to create that deep greeneconomy.

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    World record

    tissue machinein Neuss, Germany, produced 2,200meters a minute for more than 24 hourson February 3-4 this year, it meant not

    only that it broke the world record.Much more remarkable is the fact thatPM2 was purchased and installed in1972. Especially when the competitionconsists of machines that are three, fiveor 10 years old, says operations man-ager Jan Wohlbold at SCA in Neuss.

    When SCA took over the plant in2007, PM2 produced up to 2,000meters of facial tissues a minute. Sincethe takeover, the previous record forthe machine had been 2,100 meters

    a minute, but this has been graduallyincreasing. What is the secret behindmaking the machine faster, particularlyfor one as much as 38 years old?

    shown with thismachine is that age is not as importantas the people at the machine and howthey do their job, Wohlbold says.That has been our focus over the lasttwo years, and weve worked a greatdeal on the collaboration between themaintenance experts and the processpeople that they understand each oth-er. You cant just run a machine at fullspeed until it breaks down. At the same

    In February, SCAs tissue machine PM2 brokethe world record in producing paper.Considering that PM2 is almost 40 years old,

    thats pretty impressive. Heres how SCA inNeuss made that happen.

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    n papertime, the people who are in charge ofmaintenance have to understand theprocesses and the requirements invol-ved.

    not to break the world

    record. The old record, incidentally,was held by a Mexican paper com-pany that managed to produce 2,160meters a minute. The overall goal wasto achieve the quality required at thebest cost.

    One of our objectives was to getmore tons out of the machine, and weunderstood that the best way to dothis was not through technology butrather by motivating the team work-ing with the machine, Wohlbold says.

    We noticed that the higher we set tar-gets for the team, the more psyched theywere and the better the results, providedthey had the right tools to work with.

    Naturally, with higherspeeds, morepaper is produced. Another effect theteam noted was that the quality ofthe paper actually improved. Thatsbecause attaining such high speedscalls for better process control andgood maintenance of the machine,requirements that are less stringent at a

    level of production 200 meters lower.In all, Wohlbold and the PM2 team

    produced 182.4 tons of facial tissue forthe Tempo brand over a 24-hour periodto set the record. But can they beat theirown record by further fine-tuning their

    processes and maintenance?For PM2 in Neuss? Short-term,

    no, Wohlbold says. There are somemachine parts that have limits, andweve checked with the component sup-pliers to see if its possible, but for thetime being weve reached a limit. Nev-ertheless, there are opportunities mid-and long-term.

    a recordwas also set recently with their TAD

    (through air drying) machine of 1,680meters a minute.The world record for newsprint

    is 2,011 meters a minute, Wohlboldsays. But the overall record for anykind of paper machine is 2,200 metersa minute. Its a little like the worldof boxing. You have different weightclasses and champions, and then youhave a champion for all classes, andthats our PM2 in Neuss. There is nofaster machine.

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    Despite a large-scale financialcrisis and recession, operatingprofit for 2009 was more than9.6 billion kronor, making it oneof the best years in SCAs history.

    SCAs hygiene products busi-

    ness, which are less sensitive tofluctuations in the economy thanForestry and Packaging, had agood 2009, with higher earningsand higher sales.

    Packaging operations had areally tough 2009, reportinglower sales and reduced earnings.

    Despite the difficult market sit-uation, 2009 was a good year for

    Forest Products opera-tions.

    SCA is one of theworlds most sus-tainable and ethi-cal companies. SCA

    ranks first on theSwedish insurancecompany Folksamsindex of responsiblebusiness enterprises.

    If the worlds forestswere managed the sameway as SCAs, the problem ofclimate change would begreatly improved.

    In Tonhallen, Sundsvall,Sweden.360 registered shareholders, includ-ing 250 from Vsternorrland innorthern Sweden. The place waspacked! Spring winds with sun-shine, birdsong and melting snow-drifts. Prepared plateswith an Italian theme. Bubbly inglasses. Per-sonal care items, newsletter, fuel

    pellets, a little box of candy, forestseedlings. Before the meeting

    started, 220 shareholders climbedaboard six buses for a three-hourtour of the area. Just two,but very persistently. Everything wentsmoothly and without incident.A charming film about

    a spring collection of diapers in asoccer setting.Dark suits dominated thepodium. Checkered shirts were com-mon in the audience.Wehavent gotten that far SEK 3.70.

    www.libero.se

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    glimpses

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    Senseis a new sus-tainability mag-azine from SCAthat describes andpresents the many

    sustainabilityprojects that SCA isworking with daily.Senseis geared pri-marily toward cus-tomers but also forpublic officials andjournalists. The mag-azine is publishedtwice a year in Eng-lish.

    MAKING SURE

    YOUR COMPANY

    STAYS ETHICAL

    900 IDEAS THAT

    SAVE MONEY

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    Prtection with style

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    SCAssawmillinBollstabruk,Sweden

    ,hasalonghistory.

    Foryears,theysay,ag

    hosthaslurkedintheformer

    residenceofthecompany

    director.Eventoday,th

    elost

    souloftheGrayLadyca

    nbeheardroamingthe

    topfloor.

    itsownghostSawmillwith

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    Duringthe19thcentury

    thesawmillinBollstabr

    ukwas

    oneofthelargestandm

    ostmodernpinemillsin

    Europe.

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    the foundationfor industrialization in Norrland, Swe-dens northernmost province. Alongthe ngermanlven River, a blast fur-nace was erected in the 18th century atwhat came to be Bollstabruk.

    On that same site, a sawmill opera-tion developed during the 19th cen-

    tury, with a mill that is now one of thelargest and most modern pine mills inEurope. All that remains of the blastfurnace is a slag heap.

    But the imposing residence thathoused the sawmill's director is stillthere.

    In the beginning, this elegant struc-ture served as a residence for the com-panys bosses. The building was laterconverted into the corporate headoffice for Graningeverken. Today it

    houses the regional offices of LRF, theFederation of Swedish Farmers.People have come and gone, but one

    tenant seems to remain. Ever since theend of the 18th century, a lost soul hasbeen said to be groaning and roamingthe upper floor of the residence.

    a beautifulmaid working at the residence arousedthe carnal lust of the company direc-tor. She became pregnant, which at

    that time amounted to a personaldisaster. Unmarried mothers were re-jected by both the community and thechurch, and their children were con-sidered the offspring of whores.

    The only way out for this despond-ent maid was to conceal her pregnancyand then surreptitiously kill the baby.

    According to the legend, she in-cinerated the baby in one of the tiledstoves in the company directors resi-

    dence. No one knows what happenedto the maid.

    However, what is known is that thegirl was never at peace following thedeath of her baby. A lost soul, she hascontinued to wander through the up-per floor of the manor house, dressedin thick gray clothing to avoid attract-

    ing new erotic advances.There are numerous stories about

    the Gray Lady at the Bollsta residence.Many people say they have seen andheard her yet she has made herselfknown only to men, never to a woman.

    from Sunds-vall lasted only one shift and thenrefused to come back. He told how heheard someone groaning and follow-ing him all night long, only to finally

    encounter a beautiful woman dressedin gray near the barn.A clergyman who didnt believe

    in ghosts and offered to come to thehouse to banish the Gray Lady byreading aloud from his Bible made oneattempt and chose never to return.

    It is also said that the manager ofGraningeverken, Gerard Versteegh,told of a beautiful woman dressed ingray who often followed in his wake ashe passed from room to room at night.

    Versteeghs private chauffeur, TageWallin, also spoke a few years agoabout the Gray Lady. He was onceasked to take care of his employersdog, which was scared stiff one nightand with hairs bristling refused toreturn to its bed in the residenceskitchen.

    Dogs sense ghosts, Tage said.Something or someone had scaredthe dog silly.

    Aclergymanwhodidnt

    believeinghostsandof

    feredtocometo

    thehousetobanishtheG

    rayLadybyreadingalo

    udfromhisBible

    madeoneatte

    mptandchosenevertor

    eturn.

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    Higher earnings despite sharpincrease in raw material costs

    was 1,748million Swedish kronor (excluding

    restructuring costs of 244 million kro-nor), which was 16 percent better thanthe first quarter of 2009.

    Operating profit fell by 5 percentto 2,027 million kronor. CEO Jan

    Johansson explained that earnings,which were adversely affected by ex-tremely sharp price increases in rawmaterials like recovered paper andpulp increases that cannot be imme-diately offset by raising prices.

    material pri-ces had the greatest impact on Tissue,where operating profit decreased 18

    percent compared to 2009. Earningsfor Forest Products decreased 16

    percent as a result of lower prices forpublication paper. In Personal Care,however, the positive trend continued,and operating profit rose 5 percent,mainly due to higher volume and lowerraw material costs.

    had a dif-ficult time during the financial crisis,also managed a higher operating pro-fit, in part because the restructuringprogram is now yielding results.

    CEO Jan Johansson is confidentabout the rest of the year. Market fore-casts are on whole cautiously optimis-

    tic. Demand for SCAs Personal Careproducts continues to be stable, with

    good growth in priority growth mar-kets.

    will improvewith price increases and lower costs,which is expected to produce results inthe second half of the year.

    Market demand in Packaging isexpected to increase. The publicationpaper market in Europe also showssigns of some recovery, and in sawnsolid wood products, the market ba-

    lance continues to be good, said Mr.Johansson.

    Sharp price increases in raw materials affected SCA duringthe first quarter, but the profit was still 16 percent betterthan the same period last year.

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