Facts & Figures SCA Forest Products

Transcription

1 Facts & Figures 2011 SCA Forest Products

2 On 13 December 2011, SCA Östrand s new lime kiln was inaugurated. The kiln is part of the plant s chemical recovery system and is powered by biofuel pellets from BioNorr in Härnösand,. The new lime kiln replaces two old oil-fired lime kilns and enables Östrand pulp mill to reduce its carbon emissions from fossil fuels by 80%. SCA Forest Products AB, Communications Layout and production: Areskoog Reklam AB Photo: Per-Anders Sjöquist and Linda Snell. Printing: Tryckeribolaget AB, Sundsvall, May 2012

3 Contents 1 SCA Group 2 SCA Forest Products 4 Publication papers 10 Ortviken paper mill 11 Laakirchen paper mill 13 Aylesford Newsprint Ltd. 14 Pulp 15 Solid-wood products 16 Energy 19 Forestry 20 Forest seedlings 20 Distribution & logistics 22 Research & development 24 Addresses 25

4 2 SCA Group SCA is a global hygiene and paper company that develops, produces and markets personal care products, tissue, forest products and packaging solutions. Sales are conducted in some 100 countries under many strong brands. SCA creates value by fulfilling the needs of customers and consumers in a spirit of innovation, through continuous efficiency enhancements and with a clear ambition to contribute to sustainable development. In 2011, SCA had sales of SEK 106bn and about 44,000 employees. Organisation SCA consists of four business areas: Personal Care, Tissue, Packaging and Forest Products. The business areas are organised in ten business units: SCA Incontinence Care Europe manufactures and markets incontinence products in Europe. SCA Consumer Goods Europe manufactures and markets tissue and personal care products for consumers in Europe. SCA AFH Professional Hygiene Europe manufactures and markets AFH tissue in Europe. SCA Packaging Europe manufactures and markets packaging solutions. SCA Forest Products manufactures publication papers, pulp, and solid-wood products and manages SCA s forest holdings. SCA Asia Pacific encompasses personal care products and tissue in Asia and in the Pacific area. ORGANISATION Board of Directors Business units Corporate staffs Global Hygiene Category Global Hygiene Supply SCA Incontinence Care Europe SCA Consumer Goods Europe SCA AFH Professional Hygiene Europe SCA MEIA SCA Americas SCA APAC SCA Forest Products SCA Packaging

5 SCA Group 3 SCA Americas includes tissue and personal care products in North and South America. SCA Middle East, India and Africa comprises tissue and personal care products in the Middle East, India and Africa. The Global Hygiene Category (GHC) is responsible for strategies relating to brand, product development and innovation for all segments in tissue and personal care Global Hygiene Supply (GHS) is in charge of purchasing, production planning, technology and investments in the global hygiene business. After year-end, SCA announced the divestment of the packaging operation to the UK-based packaging company DS Smith. Condensed income statement SEKm Net sales 109, ,857 Operating profit 1) 9,608 9,648 Profit for the year 1) 6,281 5,906 1) Excluding items affecting comparability Sales and earnings 2011 % % 21% % 20% % 32% % 27% 0 Sales Earnings Forest Products Tissue Packaging Personal Care Group s largest markets SEKm 16,000 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Germany Great Britain US France Italy Spain Netherlands Australia Mexico

6 4 SCA Forest Products SCA Forest Products produces publication papers for newspapers, magazines and catalogues, as well as pulp, solid-wood products and renewable energy. SCA Forest Products also manages SCA s extensive forest holding in northern, supplies SCA s Swedish industries with wood raw materials and offers cost-efficient transport solutions to SCA s units. Publication papers account for 50% of sales. Other segments are pulp, timber, solid-wood products, renewable energy and logistics. While the principal market is Europe, solid-wood products and publication papers are also exported to other parts of the world. Fibre strategy In, SCA s industries utilize the high quality of the raw material from the Group s own forests. In the south of the UK, far from the forests but close to Europe s largest concentration of paper consumers, the jointly owned company Aylesford Newsprint uses 100% recovered paper in the production of newsprint. In Austria, close to the large forests of the Alpine region and major population centres, SCA Laakirchen utilises fresh fibre from the forest and recovered fibre in the production of high-quality publication papers. The past year Net sales were on a par with the preceding year (rose 1% excluding exchange rate effects) and amounted to SEK 17,180m. Operating profit declined by 18% to SEK 2,001m. Higher prices for publication papers offset the rise in raw material costs and negative exchange rate effects. The lower operating profit in the pulp and sawmill operations was largely attributable to higher raw material costs and negative exchange rate effects. The productivity improvements implemented had a positive impact on earnings. Organisation SCA FOREST PRODUCTS President SCA Forest Products Business units Staff units SCA Skog SCA Timber SCA Östrand SCA Ortviken SCA Laakirchen Aylesford Newsprint 50% SCA Transforest SCA Energy SCA R&D Centre

7 SCA Forest Products 5 During the year, SCA and the Norwegian firm Fred.Olsen Renewables formed a joint venture to construct two wind farms on SCA s land in Västernorrland county. The area has a potential annual output from wind power generation of approximately 2 TWh. During the year, construction work commenced on the first Key ratios Group SEKm 2011 share, % 2010 Net sales 17, ,123 of which publication papers 8,490 8,526 of which pulp, timber and solid-wood products 7,066 8,597 Operating cash surplus 2,700 3,216 Change in working capital Current capital expenditures Other change in operating cash flow Operating cash flow 1, ,860 Operating profit 2, ,455 Operating margin, % Capital employed 32, ,475 Return, % 6 8 Strategic investments plants and equipment company acquisitions/disposals Average number of employees 4, ,186 DELIVERIES Newsprint 1), tonnes 549, ,000 SC paper, tonnes 521, ,000 LWC paper, tonnes 518, ,000 Solid-wood products, m 3 1,916,000 2) 1,817,000 Pulp, tonnes 480, ,000 1) Including SCA s share in Aylesford Newsprint Ltd (50%). 2) Including deliveries from Gällö Timber-

8 6 SCA Forest Products Net sales Operating profit SEKm 20,000 % 20 SEKm 3,000 % 12 15, ,500 2, , , , , Net sales Operating profit Operating profit ROCE 0 Operating cash flow SEKm 3,500 3,000 2,500 2,000 1,500 Energy 2% Pulp 13% Timber 7% Sales by product segment Newspaper 15% LWC paper 19% 1, Solid-wood products 25% SC paper 18% Sales by region Asia 10% North America 2% Latin America 1% Africa 1% Europe 86%

9 SCA Forest Products 7 wind farms in the collaboration project with Norwegian company Statkraft. SCA has also initiated planning of wind farms to be operated on a proprietary basis. Wind power is an example of new areas of use for SCA s forest holdings. In the latter part of the year, the new lime kiln at Östrand pulp mill was inaugurated. It will reduce carbon emissions by 80% and reduce costs by approximately SEK 50m on an annual basis. During the year, the decision was taken to upgrade one newsprint machine in Ortviken,, to enable production of higher paper grades. A new joint maintenance organisation, SCA Underhåll, was formed during the year for Ortviken paper mill, Östrand pulp mill and Tunadal sawmill. SCA Transforest acquired the three RoRo vessels m/s Obbola, m/s Östrand and m/s Ortviken during the year. They were previously leased on a long-term basis by SCA. After year-end, SCA announced that SCA Packaging will be sold to the UK packaging company DS Smith. The two kraftliner mills in Munksund and Obbola are not included in the transaction and instead will form part of SCA Forest Products. The transaction is subject to review under EU competition legislation prior to implementation. The newly launched SCA Energy develops SCA s wind power holdings. The photo shows wind turbines on SCA land in Jämtland county,.

10 8 SCA Forest Products WOOD CONSUMPTION AND HARVESTING Million m 3 sub Consumption SCA s Swedish units Harvesting on own forestland % of wood consumption Management SCA Forest Products President Business Development and Market Analysis Finance Communications Legal Affairs Human Resources Technology Sales and Marketing Publication papers and Pulp Ulf Larsson Tommy Sundin Göran Fridh Björn Lyngfelt Jan Svedjebrant Håkan Andersson Patrik Halling Rolf Johannesson Environmental certification SCA s forests have been FSC certified since SCA s sawmills, Ortviken and Laakirchen paper mills, Aylesford Newsprint Ltd., Östrand pulp mill and SCA BioNorr have all been Chain of Custody certified according to FSC, Forest Stewardship Council. This means that they can offer FSC-certified wood products, paper, pulp and fuel products. SCA is currently one of the world s largest suppliers of FSC-certified products. During 2011, SCA s forestry was also certified in accordance with PEFC, Programme for the Endorsement of Forest Certification Schemes. Several of SCA s industries were also Chain of Custody certified in line with PEFC. This means that SCA can now offer a broader range of PEFC-certified forest products.

11 SCA Forest Products 9 Deliveries of certified products In 2011, deliveries of FSC-certified publication papers rose by 35% SCA Ortviken (FSC) LWC paper Newsprint SCA Laakirchen (FSC) SC paper SC paper (PEFC) 27% 15% 15% 14% Aylesfors Newsprint Ltd. Newsprint SCA Östrand (FSC) Pulp SCA Timber (FSC) Solid-wood products 71% 68% 42% FSC Forest Stewardship Council. PEFC Programme for the Endorsement of Forest Certification Schemes.

12 10 Publication papers Product development in publication papers and improved printing technology leads to increased specialisation and customisation. In the past, paper containing mechanical pulp was used exclusively for certain segments. To an increasing degree, the focus is on the end product in the development and selection of paper. SCA s products are becoming brighter and have a richer feel, enabling them to compete with the traditional view of quality. Within SCA, there is substantial expertise in relation to wood fibre, forest and pulp manufacturing combined with the innovative capacity to select the right raw material for the specific pulp and paper grades. SCA manufactures LWC and SC paper, newsprint and im proved newsprint. LWC, Light Weight Coated, is a coated paper that gives high brightness as a result of the clean forest fibre used. SC paper, Super Calendered, is a high-gloss publication paper with a high content of mechanical pulp and/or recovered fibre. LWC, SC and improved newsprint are used primarily in magazines, catalogues and ad vertising print. SCA has three paper mills: Ortviken in, Laakirchen in Austria and partly owned Aylesford Newsprint Ltd in the UK. The three mills have a total capacity of 1.8 million tonnes of publication papers. PUBLICATION PAPERS COMPETITORS IN EUROPE Thousand tonnes Capacity in % UPM-Kymmene 29 Stora Enso Norske Skog SCA Holmen Burgo-Marchi Group Sappi Palm 1, ,000 4, ,000 8,000 10,000 The diagram shows the production capacity of leading manufacturers of publication papers in Europe. SCA is not among the largest players in publication papers, but instead focuses on product quality, cost-efficient production and efficient logistics.

13 Publication papers 11 Customers include newspaper and magazine publishers, independent printers and, to an increasing degree, retail chains. Market positions SCA is the fourth-largest producer of publication papers in Europe. Among manufacturers of LWC paper, SCA holds the number six spot, while it is fourth among producers of SC paper and ninth among newsprint producers. The umbrella brand for SCA s publication paper products is Grapho. Europe is the main market and publication papers are sold mainly via the Group s own sales offices in ten countries. Ortviken paper mill Ortviken paper mill produces coated publication paper, LWC, and news print on four paper machines. The raw material is fresh spruce pulpwood from SCA s own forests in northern. Ortviken is the world s sixthlargest publication paper mill with a production capacity of 890,000 tonnes of paper, of which 85 percent is exported. Principal markets in 2011 Overseas 30% LWC PAPER Nordic countries 17% NEWSPRINT Overseas 10% Nordic countries 23% Rest of Europe 15% Germany 11% Great Britain 12% Rest of Europe 17% Netherlands 7% Germany 20% Belgium 7% France 8% Great Britain 23% SC PAPER Overseas 3% Benelux 11% Germany 31% Austria/ Estonia 17% Poland 8% Italy 13% France 17%

14 12 Publication papers Ortviken paper mill Capacity newsprint, tonnes 380,000 Capacity LWC paper, tonnes 510,000 Number of employees 830 Certificates ISO 9001, ISO 14001, ISO 50001, FSC CoC, PEFC CoC Management SCA Ortviken Mill manager Kristina Enander Production, paper mill Katarina Kolar Production, Wood & Environment, Pulp, Energy Anders Åhlund SCA Maintenance Pär Eriksson Development Hans Pettersson (until Oct 31, 2011) Per-Johan Ahlzén (as of Nov 1, 2011) New products Hans Pettersson Finance Mats Kinert Marketing Jan Knuts Human Resources Stina Danielsson Procurement Jörgen Eriksson Communications Anne-Sofie Cadeskog Products and brands Ortviken paper mill Newsprint, used primarily for newspapers: Improved newsprint, used primarily for supplements and advertising print: LWC paper, used primarily for magazines and advertising print:

15 Publication papers 13 Laakirchen papermill SCA Graphic Laakirchen in Austria produces uncoated publication papers on two paper machines. The paper mill is a quality leader among SC paper producers. The Laakirchen mill produces the SC paper GraphoVerde an environmentally friendly high-grade paper containing a minimum of 50% recovered fibre. Demand for GraphoVerde remains high and accounted for 20% of paper de liveries from the paper mill in Laakirchen during 2011, meaning that the full production capacity for this eco-friendly paper grade was utilised. Laakirchen paper mill Capacity SC paper, tonnes 540,000 Number of employees 531 Certificates ISO 9001, ISO 14001, OHSAS 18001, PEFC CoC, FSC CoC Management SCA Graphic Laakirchen President Administration/Finance Marketing Human Resources Raw materials/procurement/logistics Technology/Production Mark Lunabba Franz Baldauf Stefan Eibl-Török Helmut Kinast Rudolf Seelmann Helmut Sageder Products and brands Laakirchen paper mill Uncoated publication paper, SC, used primarily for magazines, catalogues and advertising print:

16 14 Publication papers Aylesford Newsprint Ltd. The Aylesford Newsprint paper mill in the UK is jointly owned by SCA Forest Products and the Mondi Group. Aylesford Newsprint manufactures 100% recycled newsprint branded Renaissance on two paper machines. The mill is strategically situated in the southeast of England, with close proximity to national road links and the Channel Tunnel, benefiting both customers and suppliers of recovered waste fibre. Aylesford Newsprint recovers 500,000 tonnes of used newspapers and magazines to manufacture approximately 400,000 tonnes of recycled newsprint per annum. The Renaissance brand is respected and much in demand by regional and national newspaper publishers in the UK and other Western European countries because of its suitability for heatset printing. Renaissance Newsprint has also been exported to customers in the US, Africa and India. Aylesford paper mill Capacity newsprint, tonnes 410,000 Number of employees 316 Certificates ISO 9001, ISO 14001, OHSAS 18001, FSC CoC, Investors in People Management Aylesford Newsprint Ltd Managing director Mark Lunabba Finance Ian Broxup Marketing and sales David Lucas (fr o m ) Production Josef Hafellner Products and brands Aylesford Newsprint Ltd. Newsprint:

17 Pulp 15 SCA Östrand produces totally chlorine free (TCF) bleached kraft pulp. About 40% of the mill s production is used in the production of SCA s own personal care products and publication papers, with the remainder being sold to external customers. SCA Östrand also produces chemical thermo mechanical pulp (CTMP) for use in such items as tissue and packaging products. Another product produced by Östrand is Airlaid, a unique absorption material based on 100% cellulose. Östrand s products are sold under the brands Celeste, Star and Luna. The mill s soda recovery boiler generates 460 GWh of green electricity per year, making it self-sufficient in terms of electricity and heat. Östrand pulp mill Capacity bleached kraft pulp TCF, tonnes Capacity CTMP, tonnes Capacity Airlaid, tonnes Number of employees 380 Certificates ISO 9001, ISO 14001, ISO 50001, FSC CoC, PEFC CoC, Kosher Management SCA Östrand Mill manager Pulp production Energy and Recycling Production Support SCA Maintenance Development Sales and Marketing Finance Human Resources Procurement Communications Ingela Ekebro Mikael Hjärpe Jens Olsson Susan Björkqvist Trond Normann Jörgen Bergström Stefan Sjöström Johan Andersson Fredrik Ejresund Billy Norberg Anne-Sofie Cadeskog Products and brands Östrand pulp mill Kraft pulp: CTMP pulp: High-grade absorption material:

18 16 Solid-wood products SCA Timber is one of Europe s leading suppliers of wood-based products, with an annual production capacity of 2.2 million cubic metres. The operations include eight sawmills in, woodprocessing units with planing mills in, France and the UK and distribution and wholesale operations. PRODUCTION ,000 m 3 2,000 1,800 1,600 1,400 1,200 1, Further processed Standard Adapted Offgrade SCA Timber is a supplier of customised industrial wood products for further processing into such items as panelling, flooring, windows, doors and furniture. Finished wood components for such sectors as window manufacturing represent another growth market. Products for the building materials market are delivered planed and pre-packaged. The product range is supplemented with service and distribution solutions for customers in the wood industry and builders merchant sector. Gällö Timber is a subsidiary that is jointly owned by SCA Timber and Persson Invest. At the beginning of 2012, SCA Timber acquired PLF, France s largest independent timber supplier to the French builders merchant sector. Markets

19 Solid-wood products 17 PRODUCTION UNITS of which Production capacities Type Solid-wood further m 3 of wood products processed Sawmill Bollsta Pine 460, ,000 Holmsund Pine 100,000 Munksund 1) 2) 3) Pine 440, ,000 Rundvik 1) 3) Spruce 240,000 90,000 Stugun Pine/Spruce 55,000 Tunadal 1) Spruce 450,000 70,000 Vilhelmina Spruce 110,000 30,000 Gällö Timber Spruce 400,000 UK Pine/Spruce 75,000 France Spruce 70,000 Total 2,200, ,000 SCA Timber Number of employees (excl contractors) 857 All sawmills have Chain of Custody certificates (CoC) according to FSC and Controlled wood. Gällö Timber, Tunadal sawmill, SCA Timber UK and SCA Timber France are also accredited in accordance with CoC PEFC. Management SCA Timber (as of March 2012) President Finance / Administration Sales and Marketing (as of autumn 2012) Technology IT Sawmills Bollsta Holmsund Munksund Rundvik Tunadal Vilhelmina Gällö Timber SCA Timber Supply SCA Timber Supply Scandinavia SCA Timber Supply UK PLF Jonas Mårtensson Eva Somero Sörensen Anders Andersson Jerry Larsson Per Fohlin Katarina Levin Anders Nilsson Anders Nilsson Gustav Eriksson Ville Huittinen Adrian Eriksson Tommy Högberg Anders Ek Urban Wiklund Robert Simpson Alexis Megnien

20 18 Solid-wood products SCA s main markets are Scandinavia, France and the UK where the Group has a broad range of products and services, offering warehousing and sophisticated distribution to a large number of customers and building materials distributors. In other countries, SCA is a specialist supplier in a limited number of market segments. Strategy The strategy is to move towards more processed and customised products in markets offering long-term growth. SCA s own raw materials, production and logistics expertise as well as its close cooperation with customers generate competitive advantages. DELIVERIES BY MARKET IN 2011 SEKm Scandinavia/Finland North Africa/Midle East Great Britain Japan France US Italiy Netherlands China/Southeast Asia Standard products Germany Industrial products Greece/Cyprus Spain Finished products Other ,000 1,200 SOLID-WOOD PRODUCTS COMPETITORS IN EUROPE 1,000 m 3 Stora Enso SCA Timber Moelven Mayr-Melnhof Holz Holzindustrie Pfiefer UPM-Kymmene Södra Timber Setra Rettenmeier-Holding Finnforest 0 1,000 2,000 3,000 4,000 5,000 6,000

21 Energy 19 SCA Energy is the division of SCA Forest Products that coordinates all operations related to renewable energy. The unit encompasses refined and unrefined biofuel and wind power. SCA Energy is also tasked with coordinating various development initiatives in the energy area. An important partner in this work is SCA R&D Centre. Wood pellets SCA BioNorr is one of s largest producers of wood pellets and is responsible for pellet production at the plants in Härnö sand and Stugun,, employing 26 people. SCA s sawmills provide the raw material sawdust. Customers are private households, combined heat and power (CHP) plants and SCA Östrand s new lime kiln. In 2011, SCA BioNorr delivered 833 GWh of wood pellets. Forest-based biofuels SCA is one of Europe s largest suppliers of forest-based biofuels and delivers unrefined fuels such as branches and tops, bark, sawdust, and peat. In 2011, SCA delivered 3,200 GWh of unrefined biofuels, including sawdust, to SCA s own production of pellets. Customers include SCA s own industries, district heating plants and combined heat and power plants (CHP) in Northern and central. Wind power SCA is the owner of a substantial wind resource through its major land holding. The collaboration in Statkraft SCA Vind AB aims to generate just over 2,000 GWh and construction on the first wind farms commenced in In the same year, the cooperation with Fred Olsen Renewables was launched, which also aims to generate 2,000 GWh of electricity. In addition, SCA is planning to conduct wind power operations on a proprietary basis. SCA Energy Manager Åke Westberg Director of marketing, biofuels Stefan Rönnqvist Manager, Wind power Milan Kolar Development manager, biofuels Anders Hultgren Number of employees 42 Pellet capacity, tonnes Härnösand 160,000 Stugun 20,000 Certificates ISO 14001, FSC CoC

22 20 Forestry SCA Skog manages SCA s forests and is responsible for wood procurement and timber transportation to industries in Northern. The forest holding comprises approximately 2.6 million hectares of forestland, of which 2 million hectares is managed for timber production. SCA Skog comprises five forest districts, one unit for wood procurement, two seedling nurseries and a newly formed unit for aggregate products. The standing forest volume amounts to 210 million cubic metres (m 3 fo) comprising pine (43%), spruce (39%), deciduous trees (13%) and contorta pine (5%). Growth amounts to 3.9 m 3 fo per hectare and year. In 2011, harvesting in SCA s own forests amounted to 4.4 million cubic metres solid wood under bark (m 3 sub), while timber procurement from private forest owners amounted to 2.6 million m 3 sub. Strategic raw material integration Integration of SCA s own wood raw material is a key aspect of the company s strategy, contributing to a stable cash flow and reliable supplies, as well as facilitating quality assurance and cost control. Revaluation of forest holdings The total value of SCA s forest assets in 2011 was SEK 26,729m. Forest seedlings SCA s nursery operation Norr Plant consists of the Bogrundet and Wifstamon nurseries. Some 50 employees work at the facilities, of whom 32 are seasonal employees. The total production capacity is 100 million seedlings per year. During 2011, SCA NorrPlant delivered 89.5 million seedlings, with 38 million going to SCA s own forests and the remainder to external customers. STANDING TIMBER VOLUME million m 300 Forecast Current volume 250 Measured million m3 5 Cutting plan Timber harvest PLANNED AND ACTUAL HARVESTING VOLUME

23 Forestry 21 SCA Skog Forest holdings, million hectares 2.6 Productive forestland, million hectares 2.0 Volume harvested, million m 3 f 4.4 Harvested area, hectares 18,500 Thinning, incl. alternative forestry methods, hectares 17,700 Share of thinning (volume), % 16.2 Number of employees 470 Management SCA Skog President Mats Sandgren Business analysis Kristian Areskog Forest districts Jämtland Sven Lindroth Medelpad Göran Tjernberg Norrbotten Morgen Yngvesson Västerbotten Birgitta Boström Ångermanland Björn Larsson Wood Procurement Jörgen Bendz NorrPlant (forest seedlings) Jörgen Andersson Aggregate products Valter Jonsson (as of spring 2012) Finance Hillevi Mörtberg Communications Misan Lindqvist IT Göran Wikström Legal affairs Lars Rubensson Human Resources Lena Westman Silviculture Pelle Gemmel Technical development and TQM Magnus Bergman million m 3 From forest districts 6.8 WOOD PROCUREMENT IN 2011 Joint procurement 5.2 Consumption??? SCA forests Locally purchased External suppliers/ Timber exchanges 3.5 Chips from own sawmills 1.2 Import 0.5 SCA s pulp and paper industries SCA s sawmills 4.4 External industries

24 22 Distribution & logistics SCA Transforest is the SCA Group s logistics operation and provides an extensive sea and land transport service within Europe and to overseas destinations. During 2011, the total volume handled was 9.5 million tonnes. Sea transportation accounts for about half of the operation, with the remainder comprising goods handling, road and rail freight and ships agency services. The business is supported by a network of terminals at strategic ports in Europe. The terminals offer stevedoring, warehousing, freight forwarding, customs clearance, ships agency services and other related services. Marine services include extensive intra-european services and the opportunity to transport goods to markets outside Europe, which to a large extent are containerised. Marine transportation accounts for 72% of the business and is conducted, in part, using three specially designed RoRo vessels that operate on a scheduled route, ensuring high delivery reliability. Marine transportation operations also include chartered and contracted vessels offering an effective container service in the Baltic Sea and North Sea with connections to destinations outside Europe. Some 12% of SCA s total cargo volume is by truck, while 16% is by rail. Advanced IT systems contribute to streamlining administration and customer information and support throughout the supply chain. The m/s Obbola, m/s Östrand and m/s Ortviken RoRo vessels operate the North Sea twice weekly. They carry up to 8,200 tonnes, distributed between 165 cassettes and two decks. The cassette system enables loading and unloading in less than four hours.

25 Distribution & logistics 23 SCA Transforest Number of employees 385 Certificates ISO 9001:2000, ISO 14001:2004 Management SCA Transforest President Finance Market and business development IT / Logistics Logistics Shipping ITS ITU Office Human Resources Magnus Svensson Per-Anders Westin Nils-Johan Haraldsson Roger Sälgh Peter Eriksson Lars Petersson Urban Häggkvist Margaretha Gustafsson Katarina Näslund Christina Löthman Transforest Shipping Manager Lars Petersson System traffic RoRo, tonnes 1,700,000 Conventional traffic, tonnes 1,300,000 Container, teus 39,000 Warehouse Annual Interforest Terminals / Manager capacity, m 2 volume, tonnes Sundsvall, / Urban Häggkvist 70,000 1,900,000 Rotterdam, Netherlands / Roelf Buist 73,500 1,600,000 Umeå, / Margaretha Gustafsson 75,000 1,500,000 London, UK / Hugo Heij 50, ,000 Lübeck, Germany / Paul Posorske 15, ,000 Other operations Associated terminals in Skövde (), Vasa (Finland), Hull (UK), Dublin (Ireland), Lisbon (Portugal) and Livorno (Italy). Partly owned companies Sundsvalls Hamn AB 15% Bottenvikens Stuveri AB 15%

26 24 Research & development SCA R&D Centre conducts strategic research and development for SCA Forest Products and SCA Packaging Europe. The basis of the operation is know-how of the unique wood fibre originating in SCA s forests. Research activities are carried out in various competence groups and the purpose of much of the work is to help the business units mills to enhance product quality, develop new products and contribute to cost-efficient production processes. SCA R&D Centre works closely with different development groups at the business units mills and also collaborates with external research institutes, as well as colleges and universities. Develop new products SCA R&D Centre is also a key resource in the development work initiated by SCA Forest Products to develop new products involving the innovative use of SCA s wood raw material. Five areas have been selected consisting of both new products and new or developed processes: energy reduction for mechanical pulp production, next generation of publication papers, biorefinery in mechanical pulp mills, new cellulose-based materials and the packaging solutions of tomorrow. SCA R&D Centre s location on campus at Mid University in Sundsvall,, provides a solid basis for conducting research. The close ties between basic research, applied research, product development and production also create significant potential for exciting new products for the future. The collaboration is beneficial for both parties, making it easier for skilled students and researchers to approach SCA and for the Group s researchers to become more involved in academic research. SCA R&D Centre President Örjan Petterson Number of employees 90

27 Addresses 25 SVENSKA CELLULOSA AKTIEBOLAGET SCA Box 200 SE STOCKHOLM Klarabergsviadukten 63 Tel SCA FOREST PRODUCTS AB SE SUNDSVALL Skepparplatsen 1 Tel Ulf Larsson, president SCA GRAPHIC LAAKIRCHEN AG Postfach 5 AT-4663 LAAKIRCHEN Schillerstrasse 5 Austria Tel Mark Lunabba SCA ORTVIKEN SCA Graphic Sundsvall AB Box 846 SE SUNDSVALL Ortviken paper mill Tel Kristina Enander AYLESFORD NEWSPRINT Ltd. Newsprint House Bellingham Way AYLESFORD Kent ME20 7DL UK Tel Mark Lunabba SCA UNDERHÅLL SCA Graphic Sundsvall AB Box 846 SE SUNDSVALL Ortviken paper mill Tel Pär Eriksson Publication paper sales Belgium SCA GRAPHIC PAPER BELGIUM NV-SA Chaussée de Tervuren 179/2 BE-1410 WATERLOO Belgium Tel Patrick Sandrap France SCA GRAPHIC PAPER FRANCE S.A. 4 rue Gustave Flourens Bãtiment B FR SURESNES France Tel Emmanuel Boisseau Italy SCA GRAPHIC PAPER ITALIA S.r.l. Via Palmanova 67/B IT MILAN Italy Tel Romano Miato Netherlands SCA GRAPHIC PAPER NEDERLAND B.V. Postbox NL-1100 DH AMSTERDAM Z.O. Entrada 161 NL-1096 EC AMSTERDAM Netherlands Tel Jos Tervoort Nordic region SCA GRAPHIC PAPER NORDIC SCA Graphic Sundsvall AB Box 846 SE SUNDSVALL Tel Magnus Larsson Poland SCA GRAPHIC PAPER POLSKA Sp.z.o.o. ul. Gwiazdzista 15A lok.404 PL WARSAW Poland Tel Tadeusz Misko Portugal SCA GRAPHIC PAPER PORTUGAL SA Alameda dos Oceanos, Lote A Parque das Nações PT LISBOA Portugal Tel Carla Filipa UK SCA GRAPHIC PAPER UK LTD Bradbourne House New Road East Malling Kent ME19 6DZ UK Tel David Lucas Germany SCA GRAPHIC PAPER DEUTSCHLAND GmbH Postfach DE METTMANN Germany Schwarzbachstrasse 10 DE METTMANN Tel Nicolas Grand Austria SCA GRAPHIC PAPER AUSTRIA Postfach 5 AT-4663 LAAKIRCHEN Schillerstrasse 5 Austria Tel Martin Mascher

28 26 Addresses SCA ÖSTRAND SCA Graphic Sundsvall AB SE TIMRÅ Östrand pulp plant Tel Ingela Ekebro Pulp sales France SCA GRAPHIC SUNDSVALL AB SE TIMRÅ Östrand pulp mill Tel Johan Malker Italy SCA GRAPHIC PAPER ITALIA S.r.l. Via Palmanova 67/B IT MILAN Italy Tel Romano Miato Netherlands KONINKLIJKE EDUARD VAN LEER B.V. Jodenbreestraat NL-1011 NS AMSTERDAM Netherlands Tel Gerard van de Pol Nordic region SCA Östrand SCA Graphic Sundsvall AB SE TIMRÅ Tel Stefan Sjöström Overseas KORAB INTERNATIONAL AB Södra Hamngatan 53 SE GOTHENBURG Tel Christian Hörberg Elof Hansson AB Pulp Division SE GOTHENBURG Tel Henrik Wallin Mats Jiremark Poland SCA GRAPHIC PAPER POLSKA Sp.z.o.o. Ul. Gwiazdzista 15A lok.404 WARSAW Poland Tel Tadeusz Misko Portugal NORTHERN PULP CELLULOSE SALES S.A. Menéndez Pidal, 6 bajo ES MADRID Spain Tel Peter Schmidt UK PRIORITY PULP & PAPER LTD Quinta Wheeler End Common High Wycombe Bucks HP 14 3NJ UK Tel Kenn Townley Spain HANSEN & CAPPELEN S.A. Avenida del Brasil, 17, 16 D ES MADRID Spain Tel Nils-Ola Jeppsson HANSEN & CAPPELEN S.A. Plaza del Cedro 2-10 B ES SAN SEBASTIAN Spain Tel Enrique Navajas Germany/Austria/ Switzerland SCA ZELLSTOFF GmbH Oberbaumbrücke 1 (Deichtorcenter) DE HAMBURG Germany Tel Folkert Waller Turkey REIS PAZARLAMA VE TICARET AS Mectep Sokak No 10 Levent TR-ISTANBUL Turkey Tel Sinan Demir Ismet Müstecaplioglu SCA TIMBER AB SE SUNDSVALL Skepparplatsen 1 Tel Jonas Mårtensson SCA TIMBER AB Bollsta sawmill SE BOLLSTABRUK Bruksvägen 15 Tel Katarina Levin SCA TIMBER AB Holmsund sawmill SE HOLMSUND Axel Enströms väg 1 Tel Anders Nilsson SCA TIMBER AB Munksund sawmill Box 783 SE PITEÅ Måsvägen 20, Munksund Tel Anders Nilsson

29 Addresses 27 SCA TIMBER AB Rundvik sawmill Box 3 SE RUNDVIK Brogatan 3 Tel Gustav Eriksson SCA TIMBER AB Tunadal sawmill Box 815 SE SUNDSVALL Tel Ville Huittinen SCA TIMBER AB Vilhelmina sawmill Industrivägen 36 SE VILHELMINA Tel Adrian Eriksson GÄLLÖ TIMBER AB Gällö sawmill SE GÄLLÖ Tel Tommy Högberg SCA TIMBER SUPPLY SE SUNDSVALL Skepparplatsen 1 Tel Anders Ek UK/Ireland SCA TIMBER SUPPLY LTD Etruscan Street, Etruria STOKE-ON-TRENT Staffordshire ST1 5PG UK Tel Tel (sales) Robert Simpson SCA TIMBER SUPPLY LTD Severn Farm Industrial Estates WELSHPOOL Powys SY21 7DF UK Tel Robert Simpson France SCA TIMBER FRANCE S.A.S. BP FR ROCHEFORT CEDEX Quai de l Ecluse Bassin No 3 Tel Jacques Morand PLF Le Pinail FR BONNEUILMATOURS Tel Alexis Megnien Scandinavia SCA Timber BM Skandinavien AB SE STUGUN Stuguvägen 21 Tel Urban Wiklund Timber product sales Finland/Eastern Europe SCA TIMBER AB SCA Packaging Finland PB 426 FI TAMPERE Finland Tel Ville Liimola Greece/Turkey/Cyprus N. A. Sitaras Ltd Box GR KIFISIA ATHENS Greece Meletitiki building, 27, Monemvasias Street GR POLYDROSO ATHENS Tel Nicholas Sitaras Israel FOXMAN TIMBER TRADE P.O. Box IL-JERUSALEM 36 Qore Hadorot St. Jerusalem Tel Amiram Foxman Italy A PARLATO WOOD PRODUCTS SALES AGENTS Via Oberdan, 10 IT BOLOGNA Tel Raffaele Parlato Japan SCA TIMBER AB Torebo Herrgård 546 SE ELLÖS Tel Peter Forssell China/Southeast Asia SCA TIMBER CHINA & S:E ASIA Ltd. 17th Floor, Woon Lee Commercial Bldg. 7-9 Austin Avenue Kowloon, HONG KONG Tel Mathias Fridholm

30 28 Addresses Netherlands SCA TIMBER BENELUX Timber Benelux P.O. Box 226 NL-1500 EE ZAANDAM Tel Ad Dekker North Africa/Middle East UNI4 MARKETING AB P O Box SE STOCKHOLM Rosenlundsgatan 56A, 4 tr Tel Anders Marklund Scandinavia, forest products SCA TIMBER AB Munksund sawmill Box 783 SE PITEÅ Måsvägen 20, Munksund Tel Lars-Ivar Eriksson Spain THE NORTHERN PULP CO S.A. Almagro 21 ES MADRID Tel Patricia Endsjö Germany JACOB JÛRGENSEN WOOD GMBH Hans Henny Jahnn Weg 9 DE HAMBURG Tel Raili Heikkinen US SCA TIMBER AB Kirschner Rd Kelowna B.C. Canada V1Y 4N7 Tel (USA) Tel Michael Wicklun SCA ENERGY AB SE SUNDSVALL Skepparplatsen 1 Tel Åke Westberg SCA BIONORR Box 223 SE HÄRNÖSAND Varvsallén 23 Tel Stefan Rönnqvist Ulf Orvér SCA SKOG AB SE SUNDSVALL Skepparplatsen 1 Tel Mats Sandgren SCA SKOG AB Game and fishing Pl 800 SE FRÄNSTA Tel Joachim Söderberg Business operations SCA SKOG AB Jämtland Forest District Box 487 SE ÖSTERSUND Storsjöstråket 15 Tel Sven Lindroth SCA SKOG AB Medelpad Forest District SE SUNDSVALL Tunadal sawmill Tel Göran Tjernberg SCA SKOG AB Norrbotten Forest District Box 783 SE PITEÅ Måsvägen 20, Munksund Tel Morgen Yngvesson SCA SKOG AB Västerbotten Forest District Axel Enströmsväg 1 SE HOLMSUND Tel Birgitta Boström SCA SKOG AB Ångermanland Forest District Bruksvägen 15 SE BOLLSTABRUK Tel Björn Larsson SCA SKOG AB NorrPlant Box 215 SE TIMRÅ Bogrundet Plant Nursery Golfbanevägen 4 Tel Jörgen Andersson SCA SKOG AB NorrPlant Wivstamon Plant Nursery Kabelvägen 8 SE TIMRÅ Tel Jörgen Andersson SCA SKOG AB Wood Procurement SE SUNDSVALL Skepparplatsen 1 Tel Jörgen Bendz

31 Addresses 29 SCA TRANSFOREST AB Box 805 SE SUNDSVALL Sjöfartsvägen 7 Tunadal Harbour Tel Magnus Svensson Germany INTERFOREST TERMINAL LÜBECK GmbH P O Box DE LÜBECK Fabrikstrasse 12 Tel Paul Posorske Terminals Netherlands INTERFOREST TERMINAL ROTTERDAM B.V. P O Box 607 NL-3195 ZG PERNIS RT Streefwaalseweg 15 Prins Willem Alexanderhaven, Haven 2810 Tel Bob de Lange UK INTERFOREST TERMINAL LONDON Ltd 44 Berth Tilbury Dock Essex RM18 7HR Tel Hugo Heij SCA R&D CENTRE AB Box 716 SE SUNDSVALL Sidsjövägen 2 Tel Örjan Petterson SCA FOREST PRODUCTS AB Merlo archive Merlovägen 5 SE TIMRÅ Tel Kjell-Åke Hermansson INTERFOREST TERMINAL SUNDSVALL SCA TRANSFOREST AB Box 805 SE SUNDSVALL Sjöfartsvägen 11 Tunadal Harbour Tel Urban Häggkvist INTERFOREST TERMINAL UMEÅ AB SE HOLMSUND Umeå Harbour Tel Margaretha Gustafsson

32 SCA FOREST PRODUCTS AB SE SUNDSVALL Tel Fax