sca magazine shape 3 2007

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STOP THESPREAD OF MRSA:

Contents N3 2007

6

Over a thousand

people in Swedenwere infected with

the MRSA bacteria in

2006. This is how the

dangerous bacteria

looks close up.

WASHYOUR HANDS.


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04SHAPE UP

What country has the most trees to hug?And what do the Chinese like to buy the most?Read more in Shape up.

06SHAPE COVERThe MRSA bacteria is resistant to antibiotics, andinfects an increasing number of patients worldwide.Clean hands are the best prevention.

14TREND

Shape gives you whisky that tastes of Scotland,guides you through the eco-labeling jungle andexplains why some packages are hard to open.

20PROFILE

Meet Kathryn Llewellyn, campaigns manager

for ACTSA, which supplies women in Zimbabwewith once hard-to-come-by sanitary towels.

24TECHNOLOGY

Fourth-generation paper is here and it cantalk back to you.

26SCA INSIDE

Read about Jan Johansson, the new CEO forSCA, and Johan Karlsson, the new IR manager.

30CAMERA

SCA has a multitude of faces. Check out just a few

of many examples from the multifaceted companyon page 30.

34CAPITAL MARKET DAY

Growth in the Americas was the key phraseat SCAs Investor Day in New York.

[3*2007]SHAPESCA*3

SCA Shape is published in Swedish and English. The

contents are printed on GraphoCote 80 gra m from SC A

Forest Products. Reproduction only by permission of

SCA Corporate Communications. The opinions expressed

herein are those of the authors or persons i nterviewed

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 Publisher Bodil Eriksson

Managing editor Anna Selberg

Editorial Anna Selberg, SCA and Gran Lind, Kristin

Peva, Appelberg Design Tone Knibestl and Mats

Wester, Appelberg Printer Srmlands Grafiska

Quebecor AB, Katrineholm Cover photo Jens Hllqvist

20

30

16

24


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0 10 20 30 40 50 60

SHAPE UP

4*SCA SHAPE[3*2007]

COUNTRY GRDI* SCORE

1 India 92

2 Russia 89

3 China 86

4 Vietnam 74

* GLOBAL RETAIL DEVELOPMENT INDEX

India tops the list of hot markets

Jewelry is at the top of

the list and cell phones at

the bottom when Chinas

National Bureau of

Statistics (NBS) reports

sales increases in different

product groups in the

Chinese retail trade.

CHINA LOVES SHOPPING!and ths is w they pefer to buy

53.3

45.2

44

42.3

30

29.5

27.1

26.2

25.7

23.7

19.7

19.2

15.4

5.3

Increase in August from previous year (percent):

JEWELRY

MEAT, EGGS AND POULTRY

GRAIN AND COOKING OIL

AUTOMOBILES

LEISURE ACCESSORIES

FURNITURE

BUILDING MATERIALS

HYGIENE & INTIMATE ITEMS

CLOTHES

COSMETICS

OFFICE MATERIALS

HOUSEHOLD APPLIANCES

OIL AND OIL PRODUCTS

TELECOM EQUIPMENT

SOURCE: NBS

PHOTO:ISTOCKPHOTO

HIGHER COST FORCHINESE GOODS

After controversies in

Europe and the US over

inadequate product safety,

particularly with Chinese

toys, a general price

increase for products

made in China is expected.

For consumers in the

US, the big sale thats been

under way for 20 years is

almost over, Andy Xie,

former head economist for

Morgan Stanley in Asia,told the Los Angeles

Times.

Costs in China are on

the rise. Consumers will

have to get used to this.

According to US statistics,

the cost of imports from

China rose 0.4 percent in

June, the largest single

price increase since

measurements began.

ACCORDING TO THE CONSULTANCY firm ATKearney, the market for retail shopping is growingbetween 25 and 30 percent in India and 13 percent inRussia and China. India is the hottest country on thecompanys list of new markets with tremendouspotential. Scores and rankings are calculated based onbusiness country risk (25 percent), market attractive-ness (25 percent), market saturation (30 percent) andtime pressure (20 percent).


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[3*2007]SHAPESCA*5

EUROPE

RECYCLES

MORE PAPER

Paper recycling continues to

increase in Europe. The recy-

cling rate (recovered paper in

relation to paper consumption)during 2006 was 56.3 percent

as compared to 55.8 percent

in 2005, according to statistics

from the Confederation of

European Paper Industries.

In 1991, the recycling rate

stood at only 42.1 percent.

Recycling rates vary greatly

among different paper qua-

lities. Some 80 percent of

newsprint used is recycled,

while only 10 percent of the

paper used in magazines is

recycled.

1. RUSSIA 808.8

2. BRAZIL 477.7

3. CANADA 310.1

4. USA 30.1

5. CHINA 197.3

6. AUSTRALIA 163.7

7. KONGO-KINSHASA 133.6

8. INDONESIA 88.5

9. PERU 68.7

10. INDIA 67.7

(22.) SWEDEN 27.5

SOURCE: POCKET WORLD IN FIGURES, THE ECONOMIST

TOP SPOTS FORTREE HUGGERS

PRIVATE LABELS ON THE RISEPRIVATE LABELS CONTINUE to take a large part of the market

in UK grocery retail and now stand for a 43 percent share of the totalUK grocery market, according to TNS Worldpanel. In Europe, onlySwitzerland has a higher share, with private labels making up 53percent of the market. Among the top four grocers in the UK market

Tesco, Sainsburys, Asda och Waitrose half of the turnovercomes from private labels.

The UKs private label market is not only the biggest in Europe.

In the UK, private labels also stand out for being more expensive

than other brands. Studies show that for more than half of UKconsumers polled, private labels werent bought because they were

the cheaper alternative.

Te lrges fs are in tewrd, in mo hec:

PRIVATE

LABEL


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WEAPON AGAINST

SUPERBUGS:

SHAPE COVER

inah Gould, a professor ofapplied health at City Uni-

versity London, has spe-cialized in one way to pre-vent the spread of the most

worrying superbug, meth-icillin-resistant Staphylo-

coccus aureus, or MRSA:

wash your hands.Its an old truth: bacteria dont like hygiene.

In her research, Gould has developed a sys-tematic approach to how people wash their

hands and maintain hygiene, especially inBritain.

British hospitals are so dirty that if yousimply touch something, you run the risk of

getting bacteria on you, she says. You canwash your hands, but as soon as you touchsomething, youre dirty again. And thereslittle awareness of this.

In a case that received attention inBritain, a man was infected with MRSA

bacteria after having undergone a rou-

tine operation. The bacteria could notbe stopped and his leg had to be ampu-

tated.What is ironic is that he had worked as

a cleaner at the hospital for 15 years andhad instructed colleagues how to clean toget rid of MRSA.

Studies that examine the prevalence ofMRSA place Britain high on the list, while

the Nordic countries and the Netherlandscome in far lower. But this is a serious andgrowing problem everywhere. In Sweden,for instance, 1,058 cases of MRSA infec-tion were reported last year, according tothe Swedish Institute for Infectious Dis-ease Control. Thats almost three times

as many as in 2000. In the US the num-ber of reported MRSA infections was

125, 000 last year, according to APIC(theAssociation for Professionals in InfectionControl and Epidemiology).

The spread of MRSA is thought to belargely the result of doctors prescribing

d

Nearly 80 years after the discovery of antibiotics,hospitals and scientists are struggling to come togrips with bacteria that have developed resistance.Known as superbugs, theyre a source of growingconcern and claim the lives of thousands of peopleeach year. If antibiotics cant stop them, what can?TEXT JOHAN RAPP PHOTO JENS HLLQVIST

6*SCA SHAPE[3*2007]

WASH YOURHANDS


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To avoid spreading bacteria in

hospitals, personnel should wash

their hands every time they touch

a patient or do anything nearby.

Theoretically, they should do this as

many as 36 times an hour.

British hospitals are so dirty thatif you simply touch something,

you run the risk of getting bacteria on you

antibiotics for many years for the slight-est symptom, often unnecessarily. Alex-

ander Fleming, who discovered antibiot-

ics in mold in the 1920s, warned early onthat bacteria have a propensity to become

resistant. Therefore, antibiotics must be

used selectively and with restrictions. To-day doctors and others involved in public

appeals as well as lobbyist groups warn

that antibiotics are still being sold over

the counter in a number of countries, likeSpain and Greece; that antibiotics are be-

ing used in animals consumed by people;and that the pharmaceutical industry is not

developing new antibiotics. Most antibiot-

ics were developed before 1980.

The industry would rather developdrugs that are more profitable to invest in,

such as for diseases that require extensive,

even lifelong treatment not a one-week

treatment, which is the case with antibiot-

ics, says Otto Cars, professor of infectious

diseases at Uppsala University and chair-

man of the international network against

antibiotics resistance ReAct.

THE WORK WITH HYGIENE is one ofthe most important pieces of the puzzle

in the fight against MRSA.

Theres a lot to be done here, many

lives to be saved, Gould says.MRSA bacteria are found in every pos-

sible place. Some cases of illness comefrom the growth in travel, especially to

poor countries with dirty water. But inthe West, people run the greatest risk of

getting infected in hospitals.

[3*2007]SHAPE SCA*7


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SHAPECOVER

That hospitals themselves are breed-

ing grounds is due to the fact that bacte-

ria are found in the same place as peoplewith weakened immune defenses, who have

needles inserted in their body or who havewounds that are healing. Other people in

the hospital, doctors and nurses, do not

run the same risk of being infected. Nor

do visitors.The bodys best defense is keeping the

skin intact. As soon as you create an open-ing, bacteria can enter, Gould says.

In hospitals, the important thing is to

minimize the number of bacteria and tothe greatest degree possible limit the trans-

fer of bacteria that are found. One of the

most important measures is to have hospi-tal personnel wash their hands at the righttimes.

How often?In principle, every time they touch the

patient or do something near the patient,she says. In my dissertation, I compared

how often personnel washed their hands

in two hours with how often they shouldhave done so following a stringent defini-

tion. Theoretically, they should have doneso 72 times. Thats clearly not possible,

but it says something about how peoplewould be forced to act to avoid any spreadof bacteria through bodily contact. In real-

ity, procedures are based on washing before

touching a wound and before touching aninstrument that will be inserted into thepatient, like a drip needle. That means in

general a couple of times per patient, de-pending on the treatment.

ONE PROBLEM in many places is work-

ing conditions. Gould says hospital workcan be so stressful and employees so

pressed for time that hygiene procedures

fall by the wayside. Thats one reason why

people now use alcohol to wash them-

selves. You dont have to go to a sink andyou dont have to dry your hands after-

wards, since alcohol evaporates quickly.Alcohol kills bacteria, but not bacteria

spores, Gould says. So its important

to also wash with soap and water. If you

wash your hands with water, you dry them

with a paper towel. Paper is good because

FACTS ABOUT MRSA

Yellow staphylococcus (Staphy-

lococcus aureus, or SA) is one of

the most common bacteria in our

environment. Most of us carry

these bacteria at some point in our

lives, usually in our nose, in our

mucous membrane or on our skin.

One type of yellow staphylococ-cus, methicillin-resistant Staphy-

lococcus aureus (MRSA), has

developed resistance to penicillin

and, when passed on, can lead to

serious infections. Treatment can

be provided by only a limited num-

ber of very expensive intravenous

antibiotics which have serious side

effects. MRSA is spread mainly in

and between medical institutions

and has quickly become by far the

greatest problem in health-care

hygiene throughout the world

today. The bacteria can causefestering infections to wounds

and lead to dangerous infections

in hospitals, for example after an

operation.

Source: The Swedish Institute for Infec-

tious Disease Control

It is good to dry your hands with

a paper towel because it re-

moves skin particles from your

hand that can contain bacteria.

Beautiful but dangerous. A

picture of MRSA bacteria.

8*SCA SHAPE[3*2007]


9/36

HE WARNED ABOUT BACTERIA

The Scottish

doctor had seen

young men die

as a result of

relatively simple

bacteria infec-

tions in field

hospitals during the First World

War. In many years of research,

he tried to develop a means that

could stop infections.

He was close to giving up. But

one day in 1928, when he was

disinfecting petri dishes where

he had been growing bacteria,

he saw mold in the dish. That in

itself wasnt unusual. His labora-

tory was well known for being

messy, and things were stackedup in the sink. The strange thing

was that the bacteria were dead

where the mold was growing.

He had discovered an antibiotic.

Alexander Fleming analyzed the

mold and found that it was from

the penicillium family.

Two other scientists, Howard

Florey and Ernst Chain, contin-

ued Flemings work by develop-

ing, among other things, meth-

ods for the mass production of

penicillin. In 1945, the three were

awarded the Nobel Prize for hav-

ing developed this miracle drug

which has saved millions of lives.

However, Fleming sounded an

early warning. He had observed

that bacteria could become

resistant if too little of the drug

was used for too short a period.

He traveled around the world

focusing attention on the riskthat the sloppy use of antibiotics

would lead to the development

of resistant bacteria.

it removes skin particles from your handthat can contain bacteria, she adds.

Bacteria protect themselves by sur-rounding themselves with a case made of

spores. Under favorable conditions, the

spores can once again become active bac-teria. One example is the bacterium Clos-

tridium difficile or C-diff. It is typicallyfound in hospitals because it develops as

a result of treatment using antibiotics.C-diff leads to long-term diarrhea. Lastyear, 55,634 cases of C-diff were report-

ed in British hospitals, according to Brit-ains Health Protection Agency. That was

an increase of 25 percent over 2004.

MRSA-related illnesses are difficultto fight, but not impossible. The old pre-

scription, hygiene, still holds. Gould andmany others are conducting an unre-lenting fight to establish procedures andawareness in hospitals to block the bacte-

ria, which are becoming one of the great-

est threats to human health.

MRSA IN EUROPE

In Europe, the highest prevalence of MRSA

bacteria in hospitals is in Romania, Cyprus

and Malta. Britain also ranks high on the list .

The Nordic countries and the Netherlandshave the lowest prevalence.

The statistics, from 2005, are from the

European Commissions surveillance body

EARSS, the European Antimicrobial Resis-

tance Surveillance System.

The diagram indicates the prevalence of

resistant bacteria by showing the percent-

age of resistant staph bacteria (MRSA) rela-

tive to the number of total staph bacteria.

[3*2007]SHAPESCA*9


10/36

SHAPE COVER

Each year millions of people around the world

suffer from food poisoning caused by poor hy-

giene. Wolfgang Mller teaches young future chefs

how to keep their kitchens clean. He bans dish-

cloths and encourages the use of paper instead.

TEXT PETRA LODN PHOTO SCA

PAPER WIPES

BEST IN KITCHEN

ROUGHLY HALF of all people who getfood poisoning contract it at home. But only

a small fraction of the cases are reported be-

cause its difficult to trace the source of the

problem to food and food preparation.

Most people who get food poisoning

develop a stomach ache and diarrhea. Buteach year some 5,000 people are admitted

to hospitals in the US alone because of ill-nesses that can be traced to bacteria asso-

ciated with food preparation, and a small

percentage of those affected suffer problemsfor the rest of their lives.

Wolfgang Mller teaches at a school for

chefs in Helsingborg in southern Sweden. Hy-

giene is an important subject at the school,he says, and he wants more people to learn

about it, not just those who plan to work in

kitchens. The public has alarmingly little

knowledge about the subject, he believes.

We teach students how to keep thingsclean, about bacteria and viruses, illnesses

and food poisoning, and we do practicalexperiments with bacteria so that the stu-

dents can see what happens when bacteria

attacks food, Mller says. Then its seri-

ous. Its interesting for them to see what re-

ally happens.Getting a stomach ache and diarrhea is

not just unpleasant, he says. Poor hygiene

in the kitchen can be expensive. Food thatisnt handled properly and goes bad has to

be thrown away.

At the restaurant school, Mller plac-

es great emphasis on establishing properprocedures early on, and he is strict about

making sure these procedures are followed.For instance, no one can enter the kitchen

Here are some common bacteria

that can appear in your kitchen:

AEROBIC BACTERIA: Not

dangerous but foul-smelling and

found by the hundreds of mil-

lions in every dishcloth.

CAMPYLOBACTERIA: Can be

found in products like poultry

and pork as well as unpasteur-

ized milk.

E-COLI: Bacteria found in the

intestine and spread if people do

not wash their hands thoroughly

after going to the bathroom.

ENTEROBACTERIA: Very com-

mon bacteria found in soil and

peoples intestines that disap-

pear when food is cooked.

SALMONELLA: Found in infected

raw meat but disappear when

food is cooked.

STAPHYLOCOCCI: Frequently

found on peoples skin, but only

a few species cause illness.

YOU ARE NOT ALONE IN YOUR KITCHEN

10*SCA SHAPE[3*2007]


11/36

We never use dishcloths,only paper. Everywhere,

for the cutting boards,countertops everywhere.

A FEW TIPS FROMWOLFGANG MLLER:

Practice good hand hygiene.

Make sure cutting boards are

washed thoroughly. Wooden

boards are best because they are

easier on knives. They should be

washed with dish soap but not in

hot water because they dont holdup under high temperatures.

Heat food properly, preferably over

80C (175 F), and cool leftovers

quickly. Food should put be in the

refrigerator within four hours, but

dont cover food until its completely

cooled off.

A FEW RULES FORKITCHEN HYGIENE:

Wash your hands ...

...when you start to prepare food

...when you switch to another task

...when you blow your nose

...when you touch your skin or hair

... and obviously when you go to the

bathroom

Your nails should be clean

Avoid wearing a watch or jewelry on

your hands and arms

Change cutting boards and wash

your knives when you switch be-

tween meat and vegetables

You can wash your dishwashing

without first washing carefully, all the way

up to their elbows.

Dishcloths are banned in the restau-

rant, says Mller. We never use dish-cloths, only paper. Everywhere, for the cut-

ting boards, countertops everywhere.

Ive never seen dishcloths anywherebut in Sweden. In the rest of Europe and

the US, they use paper. Its really rathersurprising. I grew up in Germany. They

use paper there.

Future chefs learn how to

clean their kitchen with pa-

per. During their studies they

also learn through practical

experiments what happens

when bacteria attack food.

Wolfgang Mller teaches at a school

for chefs and thinks that hygiene is an

important subject at the school.

[3*2007]SHAPESCA*11


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SCA IS HELPING to educate its cus-tomers about hygiene, with particular

focus on those who work with childrenand old people. In these workplaces it is

increasingly common to find that employ-

ees with little or no training in healthcareare in charge of tasks that require very

high standards of hygiene.

Peoples hands are the number one cul-prit in spreading infection, says Yvonne

Norln, head of products and marketingat SCA Tissue Europe. The easiest thing

to do is to wash your hands to preventpassing on bacteria and viruses that can

cause illnesses.Many people take great care to lather

up with soap, but Norln says the next

part of the process is more crucial. Themost important step is drying your hands

thoroughly, she says. If people dry their

hands on a towel made of cloth, theres a

big risk that theyll pass bacteria on to the

next person. Microorganisms thrive on a

damp towel. Paper is the best solution.Along with providing instruction, SCA

also carries out hygiene rounds at cus-tomers places of business. These entail

visiting the customers and assessing theirneeds as well as recommending steps to

improve hygiene.In restaurants, cooks use a towel that

they attach to their waist and wipe off ev-

erything imaginable, Norln says. We say,Throw it away. Every surface in a kitchen

should be dried off with disposable towels

to maintain good hygiene.

PETRA LODN

SHAPE COVER

YVONNE NORLNSTIPS:

It is extremely important to washyour hands before and after eatingor visiting the restroom. This is thecase at home, at work, at school, in arestaurant everywhere.

Daycare centers should have chang-ing pads to change diapers on, and theyshould keep a supply of tissues handyfor runny noses.

In healthcare establishments, it isimportant that employees wash theirhands when they move from one pa-tient to another or start a new task.

Office workers should also wash theirhands more often before and afterlunch and after visiting the restroom.Far too many people come to workeven though theyre sick.

At home, the dishcloth is the biggestculprit. A good paper towel works justas well you can wipe things up and drythings off, wring it out and dry somemore before you have to throw it away.

SCAS HYGIENE PATROL

EASING STRAINS ON OLDER PEOPLE Among the elderly, incontinenceis often accompanied by skin prob-lems that result from the inabilityto stay clean and dry. SCAs servicepackage TENA Services includesskin care products and washclothsalong with incontinence protec-tion. Workers in geriatric care areinstructed in hygiene as it relates to

incontinence care.We provide support for health-

care employees in terms of washingprocedures and personal hygiene,says Bjrn lsns, category mar-keting manager for incontinenceprotection. The aim is to ensure thatolder people are given safe, humanetreatment and that employees learn

to treat older patients who sufferfrom incontinence in a simple, secureway. In the final analysis, its a ques-tion of consequential costs, such ascosts related to skin problems, as wellas providing a high quality of life.

SCA currently offers this conceptin Europe, North America, Japan andAustralia.

...e orean atereati ...atervstn te...e orestartnganew

N.B!!!



13/36

[3*2007]SHAPESCA*13

Bend down.

Tear open box.

Take two packs.

Place on shelf.

Bend down.

Take two packs.

Place on shelf.

Bend down.

Take two packs.

Place on shelf.

Tear open box.

Place on shelf.

For Retail Ready Packaging thats easy to find, easy to merchandise and easy to see on

shelf, look no further than SCA OneTouch. With our comprehensive supply chain audit and design

service, well help you develop the right solution for your brand to minimise handling

and maximise sales. If you want to make things easier, well make all the difference

For more information simply call 0162 2 79 33 76 or email [email protected]

R R E TA IL R EA DY PA C K A G IN G. I T S E A S Y TO G E T I N TO.

.


14/36

TREND

14*SCA SHAPE[3 *2007]

Scotch whisky, according to many of its aficionados,contains the distilled essence of a proud and noblecountry. The whisky is made to exacting standards,and just as much precision goes into its packaging.

The right picture can

transport the viewer to the

shores of a silent Highland

loch.

MANY PEOPLE BELIEVE that Scotchwhisky offers the very spirit of Scotlandin a bottle, so it is hardly surprising that

marketing for the national drink is con-stantly reaching new heights. The mostattractive images in a country renowned

for glorious scenery are combined withthe highest-quality graphics to promiseinstant transport from the streets of Los

Angeles, Moscow or Beijing to the shores

of a silent Highland loch.In an industry that lives and breathes

tradition, ironically, little is taken forgranted and everything is open to review.After all, Scotch accounts for about 3.5

billion euros in exports annually to 200countries. Years ago, managers for theiconic Johnnie Walker brand thoughtlong and hard when they took the stepof reversing the direction in which thedapper gent walks. Now he goes fromleft to right, making him seem to stride

forward.Even the concept of the traditional

round tube shipped in a square case is

changing. Glenfiddich, one of Scotlandsbest-known single malt whiskies, is thisautumn introducing revamped packag-ing for top brands that features a trian-gular tube.

Liz Hodson, global brand manager for

Glenfiddich, owned by William Grant &Sons Distillers Ltd, explains: Packagingis the one thing that touches all our con-

sumers around the world, so its a reallypowerful way to communicate Glenfid-dichs unique and distinctive image. Wecommunicate the unique provenance andheritage of Glenfiddich by showing thestag in the valley (Glenfiddich means Val-

ley of the Deer) and through the stories

we tell on the tube, the bottle and the leaf-

let inside the tube.

When developing the new Glenfiddich

packaging, we spoke to thousands of con-

sumers around the world. We know fromthem that they get the quality cues from anumber of elements, from the embossed

medallion on the bottle neck to the corkstopper and the details and layering in the

graphics for example, we have mirroredthe valley detail from the outer tube on the

neck label of the bottle.


15/36

Nearly half the cartons made by

SCA Packaging in Scotland are for

Scotch whisky. Its a significant

part of our business here in Scot-land, explains Richard A. Sharp,

managing director of SCA Pack-

aging Scotland. We are here be-

cause the whisky industry is in

Scotland. Indeed, to be sold as

Scotch whisky the product has to

be bottled in Scotland, and tradi-

tion and practicalities extend that

to packaging. SCA helps world-

class market leaders such as Di-

ageo and William Grant & Sons

to ship what the Scots call our

equivalent of Champagne safe-

ly and environmentally soundly.

The industry allows little margin

for error, but is highly demanding

in terms of quality and service. A

carton costing less than one euro

and made of 75 percent recycled

material protects whisky that can

be worth 500 euros. Cartons have

to be optimized for strength and

minimized for cost and use of

materials. These are high-value

products being exported all over

the world, and part of our job is to

ensure they are in perfect and

pristine condition when theyarrive, Sharp says.

To minimize storage costs and

space, boxes can be made at a

pace of up to 13,000 cases an hour

and shipped within a day or two of

the time an order is received. We

need to make sure our boxes run

through their product lines without

causing any delay, he adds, noting

tolerances are close when packing

600 bottles a minute.

Other famous Scottish products

include shortbread, mineral water,

porridge oats and haggis (minced

sheep organs, beef and oatmeal

mixed with onion and spices in a

sheeps stomach). SCA provides

packaging for Walkers shortbread,

Highland Spring water and Quaker

Oats, but haggis is left to local

specialists.

BOXING CLEVERNothing is left to chance with one ofthe best-known brands from the tradi-tional Scottish producer. Substrates,

graphics, varnishes, color, embossingand copy all work to communicate with

the consumer, Hodson says. Glenfid-dich is very proud of its Scottish heritage,

but it was important to us to not have achocolate-box, stereotype view of Scot-

land. So the chance of seeing the Loch

Ness Monster on a bottle of Scotch isabout the same as seeing the monster in

Loch Ness.

SCA has a major role in this marketing

process by interpreting carefully honedimages in a high-quality form on car-

tons. This is not a brown box that just

says This side up, explains Richard A.Sharp, managing director of SCA Packag-

ing Scotland. We must have good print-

ing skills and machinery that allows us toprint three, four or five colors and print

them accurately.

Quality, precision and faithful interpre-

tations are crucial because cartons are de-

signed for easy opening and point-of-saledisplay. Potential buyers, therefore, might

[3*2007]SHAPESCA*15

A tube and a bottle that

feel like Scottland. Did you

know that Glenfiddich

means Valley of the Deer?

Glenfiddich is very proudof its Scottish heritage, butit was important to us tonot have a chocolate-box,

stereotype view of Scotland.

see more of the carton than of the bottle.In the end, however, marketing must be

secondary to the contents. Charlotte Hal-

liday, marketing manager for the Scotch

Malt Whisky Society, says the society ex-

tended packaging boundaries recently

when it teamed up designers and writersto create labels inspired by the contents of

the bottle. Some very beautiful designs

resulted, she explains, but if the soci-

ety spent too much on overly complex or

flashy packaging, our members probably

wouldnt be too happy.CHAD NEIGHBOR


16/36

TREND


WEVE ALL BEEN frustrated at somepoint by a package that seems to requirethe intelligence of an astrophysicist andthe strength of Superman to open. While

most of us only find it mildly aggravating

to sweep up a kitchen floor full of rice ordried pasta after the tear strip came offand the package slipped out of our hands,in Europe alone there are 60 million to 70

million people with reduced hand function

who cant do it at all. Its mainly women and

older people who make up this group, andnot just those who suffer from arthritis.

A study carried out in the fall of 2003by the Swedish Rheumatism Associationshowed that the availability of devices for

opening packages is consistently poor.Not only do many packages require greatstrength to open, but packages often have

unnecessary double inner and outer seals.

The perforated pouches in plastic and pa-per packaging are often too small.

People with reduced grip force donthave a chance to open the package, saysLeif Hansson, the associations head of

development. They quite simply cantget their weak fingers under the flaps.

In 2005, the Efficient Consumer Re-

sponse Group, together with major grocery

store chains like Tesco in Britain and Carre-

four in France and various European pack-

aging companies, developed a checklist of

criteria that included ease of opening.The requirements for the different

functions of a package must be weighed

together, says Magnus Renman, head of

strategic product development at SCA. If

we make a box thats really easy to open

for the store, it can fall to pieces whenits handled in the warehouse. There are

many kinds of solutions that are easy to

open everything from different traditional tear openings made of cardboard

to more advanced opening devices likelocks with magnets.

SCA is developing packaging solutionstogether with its customers at seven design

centers using a structured working proce

dure. Within a year, there will be some 20design centers throughout Europe.

Besides transportation packaging, SCA

manufactures what is known as primarypackaging, or consumer packaging, for

such items as laundry detergent, cognac

and perfume. One type of solution is teartape. A more advanced solution divides

the package in two when it is opened. The

second type costs a little more for custom

ers but can be used to increase sales or inimage campaigns.


17/36

SCA PACKAGING

AIMS TO MEET

CUSTOMERS NEEDS

Transportation packaging ac-

counts for 70 to 80 percent ofSCAs packaging. Customized pack-aging solutions are developed incollaboration with the customers,

such as major brand owners likeUnilever, Nestl and Kraft Food.Developing solutions largely

entails providing packaging solu-tions for the distribution chain.First, the product is given a goodlook what does it stand for, andwhat are its characteristics?

Next come the functional re-quirements the customer places ontransportation packaging in termsof lifting, filling and sealing. Werea pretty integrated part of our cus-tomers distribution chains, saysMagnus Renman, head of strate-

gic product development at SCA.Among other things, we help todevelop machinery that will putthe products in our packaging.

The point is to optimize the useof loading pallets and make surethat the packaging can be par-celed out quickly in wholesal-ers warehouses. Ideally, the bestthing would then be to convertthe packaging into a store dis-play in one simple operation.

Weve all been frustrated at somepoint by a package that seems to

require the intelligence of an astrophysicist and

the strength of Superman to open.

[3*2007]SHAPESCA*17

The requirements for the

different functions of a

package must be weighed

together. If the box is really

easy to open for the store,

it can fall to pieces when its

handled in the warehouse.

MORE ADVANCED OPENING solu-tions are often made only for select prod-

ucts, where the brand owner wants to in-vest in better, more expensive solutions,

such as for cell phones, Renman says.The packaging industry is working ag-

gressively to find alternatives, he adds.

Its not the ideas themselves that are theproblem, Renman says. We see opportu-nities and can develop solutions for pack-

aging that is easier to open.That usually means that the cost goes

up by a few pennies per package, and largevolumes mean that brand owners still think

the solutions are too expensive.They spend a lot of money on develop-

ing their own products, and unfortunately

packaging often comes up only at the endwhen the product is finished, Renman

says. Brand owners should probably also

start to think more about the needs of theend customer. BOEL HALLDN


18/36

TRENDTREND

MOST MARKETINGdivisions wanttheir products to be seen as eco-friendly,

and there are some that claim their prod-ucts are green simply because they say

they are, says Scot Case, vice president

at Terrachoice Environmental Marketingin Pennsylvania, US.

Case objects to these vague environmen-

tal claims. He has worked with environ-mental issues for 15 years and thinks that,

for a product to be credibly eco-friendly, itshould be certified by a third party show-

ing that standardized criteria have beenmet. Examples of this type of eco-labelingare EcoLogo in North America and the EU

Flower, Swedish Swan and German DerBlaue Engel (Blue Angel) in Europe.

Case thinks it will be many years before

we get a globally standardized eco-label-ing system. However, several national eco-labeling organizations are already collab-

orating in the global network GEN, and it

is fairly easy to get an approved product

certified according to another countrys

labeling system.It would be good to have a common

standard for both producers and consum-

ers, Case says.Kerstin Sahln, who works at SIS

Miljmrkning with the EU Flower, likewise

believes that a worldwide environmental la-bel will not be available for some time.

There are excellent, smoothly func-

tioning national systems in most Euro-

Many people have surely felt confused at the grocerystore when theyre trying to choose products withthe least impact on the environment. No globallystandardized eco-labeling system exists, and it willprobably be a while before such a system is in place.But progress is being made.

pean countries, Sahln says. The EUFlower is a nice complement to these wehelp each other.

The EU Commissions eco-labelingunit oversees the EU Flower. The Com-mission will soon revise the regulations

that govern work on the EU Flower. Thework on eco-labeling has not proceeded

as quickly as we would have liked, so the

Commission is discussing a change in its

work routines, Sahln says.

THE EU FLOWERwas launched in 1992,

and today it applies to 23 different cate-gories of products and services. To date,

more than 400 companies have applied tohave their products or services approved by

meeting the criteria for the EU Flower.A second type of labeling considered

to be of great interest is what is known asan environmental product declaration, or

EPD. This is a kind of ingredient list inwhich the entire life cycle of the product

is assessed. Every environmental impact

that a product entails is identified, andthen it is up to the consumer to determinewhich product is best, or worst, for theenvironment.

Every step in the life cycle of a product

is to be included from raw material ac-quisition to production, transportation,

use and disposal.

The best way today to summarize theoverall environmental impact is to make



19/36

life-cycle assessments, says Susan Ilief-ski-Janols, head of environmental andproduct safety at SCA Personal Care inGothenburg, Sweden. The environ-mental impact is summarized in impactcategories that really describe our mostserious environmental threats today, in-cluding global warming. The advantage

of EPD is that consumers and customers

get a complete environmental assessmentand can make their own choices.

As in many other places, debate onthe environment has intensified in theUS in recent years. It started with chemi-

cal companies, but now companies in ev-

ery product area want to call themselveseco-friendly.

The eco-labeling field has virtual-ly exploded, says Cindy Stilp, seniormarket segment manager at SCA North

America. Its a challenge both for sellers

and for customers to keep up. Everyonewants to be in on it, but its hard to know

whats what.SCA Tissue North America has chosen

to work with EcoLogo because this typeof label is most widespread. EcoLogo is

the oldest eco-labeling system in North

America. The label includes 150 differ-ent product categories, and some 3,000

products from hundreds of companiesare certified.

For those who are puzzled about whichproduct is most eco-friendly, it can behelpful to think about how much carbon

dioxide is emitted. You can calculate your

carbon footprint by visiting the Web site

www.carbonfootprint.com.

PETRA LODN

The eco-labeling field has virtually ex-ploded. Its a challenge both for sellersand for customers to keep up.

SCA BEST BY WWF

FSC is an international organization

that works for more responsible forest

management. All of SCAs forests and

all wood delivered to SCAs plants and

sawmills are FSC-certified or meet FSC

criteria for certified wood. This means

the wood does not come from contro-

versial sources and the company be-

haves in a socially responsible way. The

World Wide Fund for nature, WWF, sup-

ports FSC. According to the groups

own investigation, SCA has achieved

the best results among the worlds larg-

est tissue manufacturers. SCAs tis-

sue is stamped with the WWF panda.

PHOTO:GETTY

IMAGES

Which eco-label is

good for what? Con-

sumers are looking

forward to a global

standard.

[3*2007]SHAPESCA*19

TYPE I Environmental labeling:

Companies can apply to have their

products stamped with an environ-

mental logo when they meet certain

criteria developed by an indepen-

dent organization. The criteria, such

as a given quantity of emissions

or energy use, vary depending on

product category. Examples of la-

bels include EcoLogo, the EU Flow-

er, Swedens Swan and Germanys

Der Blaue Engel (Blue Angel).

TYPE II Self-declared environ-

mental claims, such as claims

from the manufacturing com-

pany that a product is recy-

clable or can be composted.

TYPE III Environmental declara-

tion: A declaration of a products

impact on the environment from

cradle to grave based on an objec-

tive life-cycle assessment. Contains

quantifiable environmental data on

a products life cycle and is verified

by an independent organization.

THREE TYPES OF ECO-LABELING


20/36

PROFILE


KATHRYN LLEWELLYN, the campaigns

manager of ACTSA, finds a way to help

poor women meet their hygiene needs.TEXT ANNA MCQUEEN PHOTO EVA EDSJ/VOL

t World Water Week, an annual globalgathering that took place in Stockholm

in August, more than 2,000 expertsagreed that every government on the

planet has room for improvement in

its water resource management. One person who

would wholeheartedly agree with this statementis Kathryn Llewellyn, the campaigns manager ofAction for Southern Africa, or ACTSA. Having left

Wales to complete her International Developmentthesis on Womens Rights at London University,Llewellyn started work at ACTSA in 2005, primar-

ily because of her personal interest in womens andchildrens rights in the region. She is so motivated,indeed, that she also founded her own charity, run

with the assistance of her family back in Wales, tohelp African children in need.

Springing out of the former anti-apartheid move-ment, ACTSA the trade union-funded group forwhom she works now lobbies the British govern-

ment for policy changes across the whole of south-ern Africa. Though its remit includes many prob-lem-rich, publicity-poor countries like Swaziland

and Malawi, Llewellyn, like the Water Week experts,is acutely aware of the need to prioritize her resources.Her organization has only five employees, who be-tween them are trying to raise awareness about prob-lems stretching across half a continent. Assessingareas of greatest need is therefore a key task.

At a trade union congress in South Africa in2005, it emerged that the country with probablythe greatest current need for assistance is once-pros-perous Zimbabwe. The former director of ACTSA

asked its union leaders, including a woman sportingan immense black eye, how ACTSA might best helpa country now burdened with 1,700 percent infla-

tion, water shortages, hygiene issues and 80 per-cent unemployment. The direct ask of ACTSAsZimbabwean partners was to address the national

shortage of sanitary towels. There had been no sup-ply for seven years, and even if they had been avail-

able, one packet of sanitary towels would now costa local woman half of her monthly salary. The blackeye, it turned out, was a ruling-party reaction to awomens street demonstration in Harare about this

very issue, among others.

a

MAKING A

DIFFERENCEIN ZIMBABWE

Bodyform has now given enough moneyto buy a quarter-million products fromthe manufacturer in Zimbabwe.


21/36

[3*2007]SHAPESCA*21

When asked

to supply

emergency

sanitary towels

to Zimbabwe,

ACTSA initially

imported the

goods from

South Africa.

But when the

group was forced to pay onerous

import duties, it had to change tack.

A local union member knew of a

manufacturer whose factory had

been forced to close down, since

no one had the funds to buy the

products. The British trade unions

then donated enough money toreopen the factory, which now

employs entirely local people

although it has to import the

cotton from South Africa, as none

is being produced in Zimbabwe.

At the start of the campaign, no

British womens magazines would

cover the story as it was considered

unsexy, Llewellyn says. But after

a smattering of celebrity support, a

relationship began to build up with

Bodyform (SCAs brand for towels

and panty liners in Britain), who

soon decided to become heavilyinvolved. Thanks to their generos-

ity, 250,000 free packs of sanitary

towels have now been distributed

across Zimbabwe, with regional

campaigns targeting all women and

girls between the ages of 15 and 40.

Bodyform has now given enough

money to buy a quarter-million

products from the manufacturer in

Zimbabwe, says Llewellyn. To be

honest, weve been surprised at just

how ethical theyve been. Were pri-

marily a trade union organization,

and we have to choose our partners

very carefully. They have to be ethi-

cal, unionized and environmentally

conscious, and Bodyform fulfilled

all those requirements. Whats

more, theyve never requested that

we import their own products or

that we brand their logo onto ours.

Theyve also engaged in extensive

PR campaigns in leading retail

outlets on our behalf. Basically,

theyve been really, really good.

SCAS BODYFORM

HELPS WOMEN IN

ZIMBABWE

PHOTO:GETTY

IMAGES


22/36


PROFILE

women of Zimbabwe will be able to put sanitarytowels back on their shopping lists, as we dont en-

visage the situation in the country turning around

for at least another four years, Llewellyn says. And

yet for the Zimbabwean trade unions, this particu-lar campaign has really made a difference. They feel

that it has stripped away the internal politics andthat a window has finally opened for them onto theworld that someone out there cares. Together, the

lady with the black eye, ACTSA and a host of gener-ous donors have somehow managed to restore some

level of hygiene to Zimbabwes women and girls,

and thereby give them back their dignity.

ACTSA has never been in the business of sup-

plying goods it merely spearheads political cam-

paigns. Llewellyn, however, felt that this must sure-

ly be the place to start. The combination of a lack

of water, the use of inappropriate materials anda general lack of hygiene was toxic and had led to

gender segregation, serious medical complicationsand domestic violence. And yet no one had everdiscussed it. Robert Mugabe was undoubtedly

a liberation struggle hero, says Llewellyn, refer-

ring to Zimbabwes long-entrenched leader, andit took a long time for anyone to dare to voice any

concerns about his regime, let alone such delicate

ones.The current ACTSA wish list, as defined primar-

ily by the local unions, includes lobbying the Euro-pean Union to prevent Mugabe from attending an

Africa-EU conference in Lisbon in December. The

Zimbabweans feel that their current leader should

not be given an international platform when hedenies them a national platform on a daily basis.

ACTSA would also like to see the formation of a

single unified womens agency within the United

Nations. In an ideal world, the group would like tocreate a cohort of monthly givers so that the gapbetween need and supply never collapses quite so

calamitously again.Of course, its going to be a while before the

RobertMugabe wasundoubtedlya liberationstrugglehero, and ittook a longtime foranyone to

dare to voiceanyconcernsabout hisregime, letalone suchdelicateones.

NAME: Kathryn Llewellyn

AGE: 26

BORN: Swansea, South Wales

LIVES: London

EDUCATION: Masters in Interna-

tional Development manage-

ment at the centre for develop-

ment studies, Swansea

University.

CAREER: Since 2005, acting

director for Action for Southern

Africa, or ACTSA.

THINGS THE WESTERNWORLD COULD DO FOR

AFRICA, ACCORDING TOKATHRYN LLEWELLYN :

Show solidarity.

Publicize the problems globally.

Dont dwell on internal politics

concentrate on the human suffering.

Dont impose Western

values on inappropriate places.

Always employ local people and

products where possible.

Dont put locals at risk.


23/36

[2*2006]SHAPESCA*23


24/36

lue skies, swaying palmtrees and a sparkling sea an expansive beach canbe seen in the distance. Ifyou come a little closer

you hear the waves breaking, and whenyou get right up to the giant display, sixmeters long and two meters high, you canalso see a number of postcards printed on

the picture. If you put your hand on one of

them, youll hear a brief description of thatparticular destination from a voice coming

right out of the paper.

This talking display was developed by

researchers at the Fiber Science and Com-munication Network, a part of Mid Swe-

den University in Sundsvall. The aim isto show what can be done with fourth-generation paper by using a working pro-

totype.

We got the term from the simple obser-

vation that the first widespread use of pa-per material was graphic paper you could

even imagine papyrus, says Mikael Gul-liksson, project manager at the network.

From that perspective, the second gen-

eration of paper came when people start-

ed to develop paper grades for packagingand similar purposes. The third genera-

tion was when paper took on the role of a

hygiene product the creping that madepaper soft was a major breakthrough.

So then we asked ourselves what thefourth generation of paper is in light of

the three previous ones, Gulliksson says.And toward that aim, we started a proj-ect involving an interdisciplinary group of

some 20 researchers.

THE PROJECT ,which is financed by theEU and supported by SCA as well as thecounty administrative board of WesternNorrland, has led to developments in-cluding the gigantic display with its pic-ture of a beach in South Africa.

We wanted to make a display thatworks at a distance, like big displays aresupposed to, but also close up by attract-

ing people to it and getting them to inter-act with the display, he says. It was anexciting challenge that involved graphicdesigners, researchers in electronics andmedia studies, and industrial designers.Weve developed this screen together.

The body of the screen is made ofa material, consisting entirely of paper,patented by the Swedish company Well-board, Gulliksson says. The sturdy

board material, which resembles parti-cleboard but is much lighter, was to bedesigned into something interesting forthe wall of the display.

Our industrial designers developed

a way to bend it so that it can stand onits own. With a wave-shaped design, youwould also get a couple of spaces on both

sides of the curves where visitors can sitand get information.

The next layer of the display consists of

an electronically functional layer, madeup of printed circuits and touch-sensitivezones. The circuits converge in differentplaces and eventually link up to a sup-porting electronics unit.

This touch-screen technology hasbeen patented by SCA, which is currently

investigating the commercial and produc-

tion technology possibilities, says Folkesterberg, head of external research atSCAs R&D Center and coordinator forSCA Packagings R&D in Sundsvall.

To create a surface that conducts elec-tricity, printing inks are used that contain

mostly silver particles.

These inks are black or gray, whicharent all that attractive, so theres agraphic surface as the final layer, Gul-

TECHNOLOGY

With new interactive functions based ontouch and sound, paper material provides

additional dimensions of communication.Fourth-generation paper is here.TEXT SUSANNA LIDSTRM ILLUSTRATION LEIF BJRNSSON

PAPERtalk to me

b



25/36

3

2

1

liksson explains.

In the prototype, the graphic layer con-

sists of different sections. Along with thehuge picture of the beach, there are sec-

tions for art with a gigantic comic strip,

for local information with a flyover image

of Sundsvall, and for music with six dif-

ferent CD covers.

Each surface has a number of touch-sensitive zones in the form of postcards,

CD covers or similar pictograms, which

signal to users that if they put their handthere, something will happen. Directly

linked to these are flat speakers built into

the paper material.The speakers consist of holes in the

wellboard surface five millimeters deep,over which we stretched thin membranes

of aluminum foil, Gulliksson says.That produces good sound. With more

sophisticated technology, the speakers

could also be printed. Quick, inexpen-

sive, efficient and all made of paper.The only thing placed outside the pa-

per product is a tiny electronic box with

sound files and software that controls thedisplay and makes sure that sound is de-

livered to the right speaker.

NEW INTERACTIONS

MEAN MORE VALUE The giant display used as a pro-totype for fourth-generation paperis built on existing technology, andin principle it could be realized in acommercial product at any time,says project manager Mikael Gulliks-son. What still needs to be developedare appropriate business models andproduction methods that are quality-assured.

Folke sterberg, head of externalresearch at SCAs R&D Center, notesthat this type of technology can be

of interest to many of the companyscustomers.

SCA makes large quantities ofinformation boards, portable displaysand other constructions made of pa-per that are used to promote productsin stores, sterberg says. By addinganother dimension of communication,customers will then get greater valueadded. SCA Packaging invests a greatdeal in developing new interactionswith customers in the form of bothpaper displays and packaging.

The talking paper consists

of three layers:

1. Sturdy board, which resemblesparticleboard, makes up thebody of the screen.

2. The electronically functionallayer is made up of printed

circuits and touch-sensitive zones.

3. The graphic surface layercommunicates with the user.

A display that talks to the observer . Each surface has anumber of touch-sensitive zones in the form of post-cards, CD covers or similar pictograms, which signal tousers that if they put their hand there, something willhappen. Directly linked to these are flat speakers builtinto the paper material.

[3*2007]SHAPESCA*25


26/36

SCA INSIDE


TORK WINS AWARDThe Tork dispenser series from SCA Hygiene

Products GmbH won the CMS Purus Design

Award in the Technical Category 3, Cleaning

and care products and industrial hygiene

products. The jury said the Tork dispenser

series displays a consistently high level of user-

friendliness presented in an outstanding way.

CMS, which stands for Cleaning Manage-

ment Services, is an international yearly trade

show, and the Purus award has been orga-

nized by Messe Berlin GmbH as part of the

CMS since 2005.

Earlier this year the SCA corporate Web site, sca.com, got a

new look and feel. By the end of 2007 every SCA business

Web site will adjust design accordingly. The first business site

that was launched with a new layout and upgraded content

was SCA Packaging Europe:

www.scapackaging.com

The new Web site is an

important next step in the

sales and marketing

transformation, says Patrick

Verhelst, marketing director

Europe. Together with new

printed materials, we now

have a strong communica-

tion platform from which we

can position SCA Packaging

as a full-service packaging

provider.

SCA PACKAGING LAUNCHES

A NEW WEB SITE

SCA AND STATKRAFT, a Norwegian

energy company, have signed a long-

term agreement on supply of electricityand are to form a jointly owned company

for a major investment in wind power in

northern Sweden. The plans involve pro-

duction of 2,800 GWh of wind powerelectricity per year in seven wind farms.

SCA grants land for the wind power

farms, while Statkraft provides finan-cing. Fully executed, the investment will

be in the range of SEK 16 billion.

Major windpower venture


27/36

[3*2007]SHAPE SCA*27

SCA Hygiene Australia has donated more than USD 80,000 to

the Cancer Council in Australia as part of a unique new initiative

supporting the popular Daffodil Day event.

By releasing a limited edition of specially designed Daffodil Day

eight-packs of Sorbent Designs toilet tissue and Sorbent Thick and

Large 100s facial tissues, SCA will contribute to the Cancer Councils

fund-raising target of more than USD 8 million.

Packaging for both products will feature the signature daffodil,

the international symbol of hope to those affected by cancer, saysJessica Severin, product manager for Bathroom tissues.

SUPPORTINGCANCER RESEARCH

IN AUSTRALIA

THE BOARD OF DIRECTORS of SCA has appointed Jan Jo-hansson, currently President and CEO of Boliden AB, as SCAsnew President and CEO. SCAs Executive Vice President and CFO,Lennart Persson, will be acting CEO until Jan Johansson can takeup his position within three months at the latest.

SCAs Chairman, Sverker Martin-Lf, states: The board sees ma-jor opportunities for SCA to improve profitability and accelerate itsgrowth rate in prioritized markets in Eastern Europe, Asia and LatinAmerica. This applies in particular to SCAs consumer products. It isa question of finding the right leadership for the right challenges. Wehave looked for a CEO whose strong leadership is well documented,who is future-oriented. These are qualities we see in Jan Johansson.

Jan strm has been President and CEO of SCA for almost sixyears. In an exemplary manner, he has implemented essential andextensive cost-cutting and efficiency enhancement programs whichhave contributed to SCAs earnings recovery, says Martin-Lf.

NEW PRESIDENT AND CEO APPOINTED

Jan Johansson is SCAs new CEO .

SCA IS INVESTING IN A BRAND NEW

USD 12 million packaging facility in Nanjing,China. This is another large-scale green-field investment in Chinas Jiangsu Provinceby SCA, following closely on the April inau-guration of its biggest and newest packagingfacility in the Suzhou Industrial Park.

The new SCA packaging factory is located

within the Nanjing Economic and Technol-ogy Development Zone. When it is complet-ed in 2008, the plant will occupy an area of30,000 square meters (7.5 acres).

The new SCA Nanjing plant will focus onserving premium customers, adding value

through proximity to customers, world-classcorrugated and protective packaging produc-

tion and integrated one-stop-shop services.SCA Packaging currently has 18 facilities

across Asia, in countries such as China, Sin-gapore, Malaysia and Indonesia. Annual sales

from its Asian packaging operations total

about USD 200 million, with more than halfof this revenue coming from China. SCA ex-pects sales in Asia to double within five yearsthrough organic growth.

Investment in China


28/36


SCA TO INVEST

SEK 20 MILLION INBIONORR

SCA is investing about SEK 20 mil-

lion is SCA BioNorrs pellet plant in

Hrnsand, Sweden. The investments

cover raw materials handling as well

as pellet production and will result in

increased production and improved

product quality.

Most of the investments, about SEK

14 million, involve a new raw material

intake system. The existing sawdust bin,

with a capacity of 150 cubic meters per

hour, is being replaced with a substan-tially more efficient bin that provides a

capacity of 550 cubic meters per hour.

The investments also include an inter-

mediate storage facility with a capacity

of 2,500 cubic meters. The raw materi-

als will be mixed in this facility prior to

being fed to the pellet production lines.

This will result in a higher and more uni-

form quality of the finished product.

SCA BioNorr is also investing in

another pellet machine in one of its two

production lines. The pellet machine

has a capacity of 40,000 tons annu-

ally, but in an initial stage will increase

production by 7,000 tons of pellets per

year due to limitations in other sections

of the plant. The capacity to produce

pellets in sacks for households and

medium-large customers is also being

increased.

We are making these investments to

meet the increasing demand for pellets,

particularly from the consumer market,

says Stefan Rnnqvist, President of SCA

BioNorr. We have favorable access to

top-quality raw materials, sawdust from

SCAs sawmills, and now we are increas-

ing our capacity to make first-class

pellets from this raw material.The investments will be completed by

year-end.

SCA BioNorr produces fuel pellets of

sawdust from SCAs sawmills at plants

in Hrnsand and Stugun, Sweden.

BioNorrs pellet plants produce a total

of 180,000 tons of pellets annually, with

29 employees. Customers are major en-

ergy producers such as industries and

heating plants as well as households.

BioNorrs pellet plants

produce a total of

180,000 tons of pellets

annually.

SCA IS INVESTING USD 63 million in a new corrugated boardplant outside Nantes in France. The new production plant willgo into operation in 2009 and will replace the present plant inthe area.

The new plant will allow SCA to raise its level of service to thecompanies in the region and offer customized packaging solu-tions including high-quality printing.

We see opportunities to grow in the Atlantic France regionwith an important customer group within the food industry,says John Williams, president of SCAs Packaging Europe busi-ness area. The new plant will meet stringent hygiene standardsin the production environment, which are crucial for this cus-tomer group. We are creating a highly flexible plant that will alsocomply with SCAs high sustainability requirements and offerour employees an improved working environment.

The investment in Nantes will include new equipment that willreduce the companys carbon dioxide and other emissions. Thenew plant will also provide improved wastewater treatment.

NEW PLANT IN FRANCE


29/36

[3*2007]SHAPESCA*29

ScA inSidE

As of Sptbr 1, Joha Karlsso is

th w Vic Prsidt Ivstor

Rlatios at SCAs had ofc i

Stockhol.

Karlssos ost rct positio was at

Husqvara whr h was rsposibl forIvstor Rlatios. Prior to that h

workd, aog othr thigs, with

ivstor cotacts withi ABB i Switzr-

lad ad th US.

New head of IR

THe eURoPeAn CommISSIon hasapproved SCAs purchase o Procter &Gambles European tissue operations

Lennart Persson, acting President andCEO of SCA, comments: The acquisi-

tion gives SCA key prerequisites for thecreation of an even better platform for con-sumer-driven awareness and will strength-

en our market positions in several impor-tant markets.

The purchase price is EUR 512 millionand will be paid in cash in two stages. A

frst payment o EUR 347 million will bemade when the deal is completed, plannedfor October 1. The second part of the pur-

chase price, EUR 165 million, will be paidfollowing agreed technical adjustments atcertain plants, which are expected to be

completed in March 2008.

PurcHASE APProvEd

Durig th sprig, TenA lauchd thr w

products o th europa arkt. Cosurs

ow hav or icotic protctio with

vry high absorptio to choos fro.

Three new producTs

from TenA

TEnA LAdY uLTrA Mini PLuS

may saw th lauch of TenA Lady Ultra mii Plus, which is oly

3 thick but cosidrably or absorbt tha ladig

saitary pads. Th product is aid aily at wo with uri

lakag probls who do ot yt us spcially dsigd uri

lakag products. A larg ajority of wo with ths prob-

ls still us rgular saitary protctio.This is a cotiuatio of SCAs

ivstt i lightr icoti-

c protctio, ad th

capaig builds o TenA Lady

mii magic, SCAs sallst siz,

which was lauchd i 2006.

Th capaig sloga is

discrt as a patylir,

absorbt as a towl, ad th

product has alrady b lauchd i a ubr of europa

coutris ad is big sold aily i rtail stors ad drugstors.

TEnA LAdY MAxi

TenA Lady maxi was lauchd i April ad is

a high prforig product i th TenA Lady

faily ad i th icotic arkt. TenA

Lady maxi is itdd for both ightti ad

dayti us. So far, th product has oly b

lauchd i Frac ad is big sold i rtail

stors. Product sals toppd 250,000 uros i

its rst v oths o th arkt.

TEnA SiLHouETTE MEdiuM

This product was lauchd i April ad is

th rst icotic protctio for adults

that works lik rgular udrwar. With its

attractiv dsig ad a or fii way ofcouicatig, th product is aid at

wo who hav ot usd products fro th

TenA Pat sris bfor.

Th product had sals of 190,000 uros i

its rst v oths o th arkt. marktig

is big carrid out through th distributio

of fr sapls, through pritd dia ad

by dirct arktig capaig. Fro Sptbr to Dcbr

thr will b a TV capaig i Frac, which is xpctd to rach

120 illio viwrs ovr four oths.


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cAmErA


This spring, SCA held a company photographycontest, with employees from around the world send-ing in their entries. The aim was to capture SCA in a

photograph. Over 300 entries were submitted, andthere was tremendous variation in the subjects. Whothought, for instance, that a paper machine made of

steel could look extraterrestrial when photographed

with a wide-angle lens? Or that two pieces of folded

paper can make a beautiful heart?The hardest-working photographer of all is Oulli de

Kort from SCA Packaging in Tilburg, the Netherlands,

who sent in the most entries. His lens transforms the

most everyday factory settings into works of art.Welcome to the world of SCA in pictures.

ScA tHrougH AcAmErA lEnS

Soa Lindh, SCA PackagingObbola, took this beautifulpicture of a paper heart.


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[3*2007]SHAPESCA*31

[3*2007]SHAPESCA*31

This futuristic pictureof Paper Machine 4 inOrtmann, Austria, wastaken by HerbertStefanek.

Ingo Wolf of SCA Hygiene Products in Ismaning,Germany, took this self-portrait at a height of 5,350meters in front of Mount Everest and the adjacentpeaks of Lhotse and Nuptse in Nepal.

A glittering wall of water, takenby Hannu Ahoniemi of SCASuameer in the Netherlands.


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cAmErA


A product devel-oper checkingproduct qualityat SCA in Olawa,Poland, taken byJan Svensk.

Harry Wierengathought ofcollaborationwhen he tookthis picture ofhis colleagues atSCA Hoogezand,Holland.


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[3*2007]SHAPESCA*33[3*2007]SHAPESCA*33

A group photoof a team fromSCA Prudhoe inEngland, taken byPaul Armstrong.

Above: An air-suckingsystem used whencorrugated board isproduced.

Left: The board readyfor next stage in the

production process.

Oulli de Kort, who works incustomer service at SCA Tilburg,sent the most entries to the com-petition. Playing with light fasci-nates him as a photographer.His interest in photographystarted at age 16 when he saw apicture taken by his grandfather,who was a great photographer.Asked how often he carries hiscamera, he says, Always. I onlyput it down when I go to bed.

Forest, by Hannasterberg, SCAsheadquarters,Stockholm

Left:

Shadows that builda beautiful patternare from a newSCA Packagingbuilding in Tilburg,Holland.


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CAPITAL MARKET DAY

SOUTH AMERICA WILLGROW 50 PERCENTor SCA Americas, we expect organic growth to be5-7 percent in the next few years. For North America,its mainly a question of further increasing the per-

centage of high-value products. In South America,

the challenge is to have rapid growth combinedwith a good profit margin, said Thomas Wulkan,

president of SCA Americas.

Especially in South America, where tissue for con-sumers accounts for almost half of sales, the opportunities for

growth look promising. Jan Schiavone, vice president of SCASouth America, estimates growth of 20 percent this year alone.

We aim to grow our existing business with 50 percent

over the next five years to sales of 1 billion dollars, something

that I think is realistic, Schiavone said.Growth in Latin America means expanding SCAs product

range and enhancing its market position in markets that it

already operates in primarily in diapers as well as enter-ing completely new markets.

There is considerable potential in Brazil and Argentina,

markets where SCA is not active today. Brazil is our firstpriority, due to the market size and the more stable politicalsituation, Schiavone noted.

He argued that SCA has a highly developed and successfulmodel for setting up operations in South America through

joint ventures, where a critical component is close collabora-tion with local players in the distribution chain. This is shown

especially by the companys success in Colombia, where SCAs

Familia tissue and Nosotras feminine care products are among

the ten most widely known brands in all categories.For SCAs single largest market in the Americas, away-

from-home tissue in the US, value growth is at the top of theagenda. The market is mature and is expected to have annual

growth of between almost 1 percent for the weakest segment

(manufacturing) and almost 4 percent for the strongest (therestaurant industry).

We will increase the share of high-value products and sell

our tissue to a greater extent in systems that give customers a

stronger connection to SCA. I expect that the percentage ofhigh-value products will increase from 3 percent of sales in2004 to 15 percent this year and 30 percent in 2011, said

Joe Raccuia, president of SCA Tissue North America.In incontinence products, where SCA has a strong position

with the TENA brand in South America as well as in Centraland North America, the company benefits from demographictrends. In Mexico, the percentage of the population over 40(the age when women could develop their first incontinence

problems) is expected to increase from one quarter today to

almost 70 percent in 2050, said Jaime Costa, president of SCA

in Mexico and Central America. Today SCA has a 40 percentshare of the Mexican incontinence market.

In the US, by far the worlds largest market for inconti-

nence products (with sales of almost 2 billion dollars), SCAtoday has 25 percent of the market in the health care sectorand 13 percent of the market in retail trade. SCAs growth

has been around 9 percent in the last few years.We benefit from demographic trends, and I expect the

strong growth to continue. Through to 2010, the number

of people over 60 in the US will increase by 24 percent,said Brian Nelson, vice president of SCA North America

Health Care.

GROWTH WAS THE KEYWORD WHEN SCA PRESENTED ITS OPERATIONS

IN THE AMERICAS TO SOME 60 ANALYSTS AND INVESTORS ON CAPITAL

MARKET DAY IN NEW YORK ON 17 SEPTEMBER.

Manhattan cityscape.

SCAs Capital Market

Day was held at the

Hotel Gansevoort in

New York.

f


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sca magazine shape 3 2007

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