SHAPE

AETT
MAGAZINE
MAGASINFROM SCAOM
FRÅN SCA ONTRENDER,
TRENDS, MARKNADER
MARKETS AND BUSINESS
OCH AFFÄRER Nº
Nº 4
2 2007
2007

MATS n moose hunt •

LEDERHAUSEN

Ca
o
a: Shape

mer
on goals higher than making money

a: Shape
mer
PATENTS

o
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nm
oose hunt •
MOVING EAST

A NS
RM
YOUTUBE GE E
today’s hottest marketing site V
LO NTS
FISH THRIVE AT COU
PULP MILL DIS
New mill in Russia ★ Cutting emissions on the road ★ CEO has the word

SHAPE_EN_407_01_omslag.indd 1 2007-11-23 09:36:29

 EPAHS Contents Nº 4 2007

Almost everyone in
Germany shops at
discount chains.

6
COVER page 6-14

TODAY
YOU EVEN SEE
PORSCHES
IN THE PARKING LOT

SHAPE_EN_407_02_innhåll.indd 2 2007-11-22 14:19:43

 ▲
04 SHAPE UP
China scours Europe for recyclable paper, Google
believes in print, and retail extends its reach.

06 SHAPE COVER
Beer and business top the bill of fare at Oktoberfest
in Germany, where shoppers love a discount but
don’t forget their local butcher and baker.

14 TREND
Smart freight handling can cut carbon dioxide
emissions and save money. Marketers switch on
YouTube, and patents move East.

20 PROFILE
Meet Mats Lederhausen, who invests in

16
companies that do more than make money.

24 TECHNOLOGY
Surprise: fish now thrive in the waste waters of the
Östrand’s pulp mill.

26 SCA INSIDE
SCA invests in new mill in Russia, and a 16-year-
old from Norway wins the Libresse design
competition.

30 CAMERA
Shape stalks the wild moose, king of the forest.

34 SHAPING A VIEW
20 SCA’s CEO Jan Johansson has the word.

26 30 SCA Shape is 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 Göran Lind, Kristin
Päeva, Appelberg Design Tone Knibestöl, Appelberg
Printer Sörmlands Grafiska Quebecor AB, Katrineholm
Cover photo Frans Hällqvist
SCA Shape is published in Swedish and English. The
contents are printed on GraphoCote 80 gram from SCA
Forest Products. Reproduction only by permission of
SCA Corporate Communications. The opinions expressed
herein are those of the authors or persons interviewed
and do not necessarily reflect the views of the editors or
SCA. You can subscribe to SCA Shape or read it as a pdf
at www.sca.com.

[ 4*2007 ] SHAPE SCA *3

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 SHAPE UP
Brighterfuture
FOR US
RETAIL SECTOR
■ While many major players report-
ed lower earnings than expected
in September, the retail market
overall grew more than expected
during the month. Statistics from
the US Department of Commerce
indicate a growth rate of 0.6 per-
cent, double the forecast.
Concerns about housing loans in
particular had raised doubts about
demand, but American consumers
still appear to be willing to spend.
The Swedish pulp and
paper industry invests in
green research.
4*SCA SHAPE [ 4*2007 ]
SHAPE_EN_407_03_plock_.indd 4
IKEA INVESTING
BILLIONS IN NEW
STORES
PHOTO: ISTOCKPHOTO
■ Ikea will invest several billion dollars in
new stores over the next few years as its
drive to lower costs continues, Ikea’s new
chairman, Göran Grosskopf, says in an
interview with the Swedish business daily
Dagens Industri. Increasing global com-
petition and more intense price pressure
account for the move.
“It’s because of other furniture chains,
DIY chains like Home Depot and rapidly
growing retail giants like Wal-Mart,
which are expanding their product
range,” Grosskopf tells the newspaper.
“We see really great potential for growth
and will invest heavily, among other
things in a number of new stores in both
existing and new markets,” he says, men-
tioning India as a possible market.
Carrefour to open
hypermarket in Bulgaria
■ THE FRENCH COMPANY Carrefour, Europe’s
largest retail chain, is opening a hypermarket in the
Bulgarian city of Varna on the Black Sea. The store
will occupy 100,000 square feet. Carrefour is leas-
ing the space for 30 years from the Scottish property
development company Miller Group.
PAPER INDUSTRY GOOD
AT ENVIRONMENTAL
PROTECTION INVESTMENTS
The pulp and paper industry, together with the
chemical and metal industries and the energy
sector, accounts for 70 percent of all environmen-
tal protection investments in manufacturing, the
Swedish National Institute of Economic Research
reports in an analysis.
The analysis also shows that the companies invest
in both corrective and preventive measures.
2007-11-23 13:51:46
 Record growth
in Poland
less than expected
■ Poland’s retail sector grew 14.2
percent in September compared
to the same period in 2006. De-
spite the sharp increase, growth
was still lower than the 16.5 per-
cent forecast. Analysts predict
that the strong growth in Polish
private consumption will slacken,
the news bureau Interfax reports.

of the company’s print adver-

tising, said he saw a number
CH

of opportunities in newspaper
BELIEVES IN PRINT
IN RE

advertising.
A C

■ GOOGLE, the pub- “Print today is an under-

SC YC

licly traded search engine, valued medium,” Phillips

O LA

surprised the market when said, noting that newspapers

UR B

a company representative are consumed more intensely

IN LE

said the company sees major than Web pages.

G P

potential for traditional print The dominant search

EU AP

advertising. Speaking to a engines, Google and Yahoo,

RO ER

large gathering of apprecia- have both developed collabo-

PE

tive newspaper managers at rations with traditional print

the Newspaper Association newspapers, and Microsoft’s
FO

of America’s annual meeting, msn has expressed similar

R

Google’s Tom Phillips, head ambitions.

■ CHINA’S DEMAND FOR recycled fiber has increased

RECYLED FIBER
IMPORTS TO CHINA
dramatically over the past seven years. This year, the country is
expected to import more than 20 million tons of recycled paper
Million tons components, up from 3.7 million tons in 2000. The reason
for the increase is an expansion of China’s cardboard and
SOURCE: SPCI/SVENSK PAPPERSTIDNING
21-23(est.)

packaging industry. Chinese containerboard makers like Nine

Dragons and Lee & Man Paper have strengthened their pres-
19.6

ence in Europe with their own purchasing organizations. The

3.7

12.3

us, which was previously the main supplier of recycled paper

6.9
PHOTO: ISTOCKPHOTO

to the Chinese, can no longer satisfy the demand for recycled

containerboard in China. The increase in Chinese demand
2000 2002 2004 2006 2007
mainly affects Britain and the Netherlands, which now have to
pay higher prices for the raw material.

[ 4*2007 ] SHAPE SCA *5

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 SHAPE COVER

PORSCHES
PARKED
AT LIDL

6*SCA SHAPE [ 4*2007 ]

SHAPE_EN_407_04_cover.indd 6 2007-11-23 13:54:22

 Albin and Elisabeth Hessler shop just as often at discount stores as they do at the well-stocked grocery chain stores.

The German grocery market is divided in two. Today, almost every

German shops at discount chains like Lidl and Aldi. At the same time, for
many people, shopping at their local bakery and butcher shop is a given.
And interest in quality is rising in the German market.

a
TEXT PETRA LODÉN PHOTO FRANS HÄLLQVIST & DUNCAN SMITH

ccording to the market
survey company AC-
Nielsen, 96 percent of
Germans shop at dis-
count stores. Aldi is the
leading chain, with an estimated 80 per-
cent of all households in Germany shop-
ping there.
“Today, you even see Porsches in the
parking lot,” says one young German.
“It’s no longer unattractive to shop at dis-
count stores.”
At Lidl or Aldi, Germans buy basic
goods like laundry detergent, toilet paper,
fish, it’s a question of shopping at other
stores. And most people choose to go to
the local bakery for bread.
“A few years ago, I went to the butch-
er’s whenever I wanted to buy meat and
deli items,” says Albin Hessler of Aich-
tal, outside Stuttgart, in southern Ger-
many. “But today I don’t do it as often.
The quality and selection are really good
in most grocery stores.”
Hessler and his wife Elisabeth go gro-
cery shopping every Friday. Usually they
travel a few miles from home to Edeka,
part of a grocery chain with a wide as-
need, but they buy their bread at the lo-
cal bakery.
At Edeka’s big supermarket, the fish is
set out in elegant displays and the meat is
well trimmed. There are plenty of staff
members to provide help, and the light-
ing is pleasantly subdued. The selection
is huge and level of service is high.
The contrast is considerable when you
walk into Aldi’s significantly smaller store.
There is only a limited range of products
here, the stores all look the same, and
things go quickly in the checkout line.
“There almost have to be two of you
▲

hygiene products or juice as well as fruit sortment of goods. During the week, they when you go shopping,” Elisabeth says.
and vegetables. For goods like meat and stop by Aldi to pick up anything else they The cashier rapidly enters the items,

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 SHAPE COVER

and there is little space beyond the cash
register, so you have to load your pur-
chases right into the cart. When you
pay, the cashier already has your change
counted out.
Aldi and Lidl offer more than just gro-
ceries. In the middle of the store are long
aisles with baskets of clothes, toys and
electronic goods. Every week they pub-
lish full-page ads, and Elisabeth Hessler
says the stores often have lines outside
before they open on the day the new sales
flier comes out.
“The discount chains do incredibly
aggressive marketing,” she says. “But
you have to watch out. Not everything is
as cheap as it seems. Their own brands
are inexpensive, but they also sell name
brands, and these may be more expensive
than in other stores. Customers probably
assume that everything is cheap because
it’s sold in a discount store.”
people want to support their local mer- even look you in the eye.”
chant. I know my customers, I say hello to Sevimli buys a substantial amount
them with a smile, we have small talk and of locally raised vegetables, which cus-
joke a bit. If an older shopper needs help tomers appreciate. Customers are mainly
carrying their purchases home, we can singles, older people and consumers who
take care of that. In stores that are part demand quality, and these target groups
of big grocery chains, the cashier doesn’t are growing. ▲
DISCOUNT CHAINS FOR EXPORT
German discount chains have done well abroad, to the point that
half of Europe’s largest grocery chains are German. In recent
years, Lidl, owned by the Swiss holding company Schwarz, has
expanded rapidly throughout Europe, and Aldi, the number two
discount giant, is not far behind.
.
THESE LOW-PRICED chains, called sell products under their own brands.
“discounts” in Germany, are grocery stores According to Frankfurter Markt-
with a limited number of items. The stores forscher, discount chains are the only
themselves are rather small, and they often grocery stores that report consistent

GERMANY HAS BEEN called a “coun-

try of bargain hunters.” But recent years
have seen a break in the trend. Last fall,
Mercer Marketing Consultants conduct-
ed a survey of 2,000 shoppers. The sur-
The discount chains
vey revealed that Germans no longer see do incredibly ag-
themselves as bargain hunters but instead
place greater value on quality and a wide gressive marketing.
selection of goods. A full 38 percent, sig- But you have to watch out.
nificantly more than in previous studies,
said selection and quality are important.
“Just relying on low prices will not be
enough in the future,” says Sirko Siems-
sen, an expert on issues in the grocery
trade at Mercer Marketing Consultants.
“Grocery chains that have a wider selec-
tion of goods may experience a resurgence
if they consistently make use of their com-
petitive edge. But at the same time, they
should keep an eye on prices.”
That’s because price still comes fi rst
in the survey. Half of those surveyed said
that price largely determines how satis-
fied they are when they go shopping.
Turan Sevimli can provide evidence
that Germans’ intense hunt for bargains
has eased. He has run a small local gro-
cery store, Markt Ecke, for six years.
”It’s not just about being inexpensive,”
Sevimli says. “Our store is good. I think
the reason for this is that more and more At Turan Sevimli’s store, customers can buy locally grown vegetables.

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 growth in sales. Aldi, Germany’s lead-
ing discount chain, increased gross sales
by 4.2 percent in 2006 from the year be-
fore. Each German household spent an
average of about 1,200 euros at discount
stores in 2006 – 63 euros more than the
year before. Schwarz had a highly suc-
cessful 2006, according to the market
survey company Retail Group. It is esti-
mated that Schwarz Group sales rose 12

FOTO: SCANPIX
percent on an annual basis.
Discount chains sometimes have their
critics, but the fact is that customers seem
to like their low prices, quick service and FACTS / LIDL
easy access. The discount chains are not
★ Started in the 1930s as Lidl & Schwarz
generally willing to be interviewed, but
Lebensmittel-Sortimentsgrosshandlung
in a written statement, Lidl explained its
★ Lidl is owned by a foundation controlled
success this way: “The cornerstone of our by the founder Dieter Schwarz and his
success is ‘simplicity.’ Our aim is to have family
all our operations, all our work proce- ★ Its headquarters are in Neckarsulm,
dures, run in a simple way, with top qual- Germany
ity at the lowest prices possible.” ▲ ★ Lidl has some 6,000 stores throughout
Europe
80,000 ★ Kaufland and Handelshof are also part
80, 000

of the Schwarz Group

70,000 “I would never buy bread at a dis-
count store,” says Elisabeth Hess-
ler of Aichtal, outside Stuttgart.
60,000
64, 000

61 ,000

50,000

40,000
45, 000

45 ,000

39 ,000

37 ,000

30,000
36, 000

32 ,000

30, 000

FOTO: SCANPIX
20,000

10,000
6.0 4.7 4.5 3.3 3.3 2.9 2.8 2.7 2.4 2.2
0 FACTS / ALDI
Carrefour France

Metro Group Germany

Tesco Britain

Rewe Germany

Edeka Germany

Auchan France

Aldi Germany

Leclerc France

Casino France
Schwarz Group Germany

★ Started as a family firm in 1913 in Essen.

Today owned by brothers Karl and Theo
Albrecht. Karl Albrecht is the richest
person in Germany with a fortune of USD
17 billion. In 2006 he was ranked 13th
on Forbes magazine’s list of the richest
people in the world
★ Aldi is short for Albrecht Discount
▲

★ In 1961, the chain was divided into Aldi

Nord and Aldi Süd after a dispute over the
sale of tobacco products
Market share in Western and Central Europe (percent)
★ There are about 1,600 stores in Germany
Approximate sales in 2006 (million euros)
and some 1,200 stores outside Germany
SOURCE: PLANET RETAIL
in a number of European countries, the US
and Australia
[ 4*2007 ] SHAPE SCA *9

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 SHAPE COVER

MEETINGS FOR
Oktoberfest in Bavaria,
Germany, is not just a
chance to drink beer in
large tankards. It has
also developed into a
popular occasion to hold
a conference, meet cus-
tomers and do business.
TEXT PETRA LODÉN

n February, when six months still

remain before the first beer is
poured at Oktoberfest, most seats
have been reserved. All that’s left
are the 20 percent of places that
the city of Munich does not allow
organizers to book ahead.
The festival area, almost half a square
kilometer in size, holds 14 major beer
tents and a number of smaller ones with
a total of some 100,000 seats.
Peter Schottenhamel is the fourth gen-
eration of owners of one of the largest
tents. His great-grandfather started op-
erations 140 years ago with a small tent
that could seat 140 people. His operation
now seats 10,000, with 6,000 in the fes-
▲

tival tent and the rest outside. Schotten-

hamel’s tent is not among those where
breweries supply their own beer. Instead,
it is run by a privately held company that
can choose the beers it serves.
FOTO: GETTY IMAGES

This year’s Oktoberfest ended Octo-

ber 7. After a few weeks of well-deserved
vacation, planning will begin for next
year’s festival.

10*SCA SHAPE [ 4*2007 ]

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 New! Our most stretchy diaper ever.

www.libero.com

SHAPE_EN_407_04_cover.indd 11 2007-11-23 13:56:19


shape cover
“It takes about four weeks to take
down the tent, and in late November or
early December it’s time to start plan-
ning for next year and taking bookings,”
says Schottenhamel. “We’re usually fully
booked in early February. It wasn’t like
this 10 or so years ago. You could still
make a reservation up until August. But
Oktoberfest is growing bigger and bigger.
We could fill another 10,000 seats.”
Many companies invite their custom-
ers or employees to Oktoberfest. “If a
company plans a meeting for May and
invites 500 customers, perhaps 50 will
come,” Schottenhamel says. “If they plan
a meeting for Oktoberfest, 490 come.”
Hundreds of different companies
come from every industry imaginable.
Some industries have a more noticeable
presence in certain years, depending on
where the most money is being made.
This year saw a lot of it companies,
banks and insurance companies. The
companies invite customers from across
the country and even from abroad. One
of Germany’s largest banks invited 400
customers to the Schottenhamel tent.
“We also have hospitals that come here
with their staff. That’s another type of cus-
tomer that often keeps coming back.”
Reserving a table doesn’t cost any-
thing, but there is a commitment to buy
food and drink. The minimum order is
two liters of beer and half a chicken.
During Oktoberfest, not a single hotel
room can be found within a 150-km ra-
dius of Munich. Oktoberfest is the event
that brings the most revenue to the state
of Bavaria, and many positive side effects
spill over to companies in the region, such
as stores and taxi services.
“I’m here every single one of the 16
days Oktoberfest is under way from
about 5:30 in the morning to 11 at
night,” Schottenhamel says. “The wait-
resses and other staff make good money,
but they work hard for their pay.”
Next year Oktoberfest is celebrating
the 175th time it’s been held. On Sep-
tember 20 it’s time to open the first keg of
beer with the words “Ozapft isch.” Book
your seat in time if you want to be sure to
get a seat in one of the big tents. ▲
12*SCA SHAPE [ 4*2007 ]
SHAPE_EN_407_04_cover.indd 12
oktoberfest
★ 6.2 million visitors came to this
year’s Oktoberfest.
★ 6.7 million liters of beer were
consumed.
★ 12,000 people work during the
festival.
★ Visitors spend almost one billion
euros during the 16 days that Ok­
toberfest is under way. Almost
half is spent in the actual festival
area, with about 200 million
euros spent on shopping in and
around Munich and 300 million
euros on hotels.
★ Oktoberfest originated with the
wedding of Crown Prince Leo­
pold on October 12, 1810, when
he married Princess Therese. The
place on the outskirts of Munich
where the festival is held is called
Theresienwiese.
Money piling up in Bavaria
Germany was reunified
17 years ago, yet it’s still a
divided country when it
comes to growth and job
opportunities. Today the
country is split not just
into east and west but also
north and south.
In comparisons of various Euro-
pean regions, two areas in particular
top the lists no matter how they are mea-
sured. Most people probably know one of
them, the southern German state of Ba-
varia. The other, Baden-Württemberg,
its neighbor to the west, may not be as
photo: getty images
Cannstatter Volksfest
The Cannstatter Volksfest or
Stuttgart Beer Festival is held just out-
side Stuttgart at almost the same time
as Oktoberfest, starting a week later.
While it is not as large an event as Ok-
toberfest, it’s not all that much smaller.
About four million visitors come over 16
festival days, consuming beer and food at
long tables. There are also a large num-
ber of attractions in the festival area.
The Volksfest was held for the first time
in 1818. King Wilhelm of Würtenberg
thought the people deserved a festival af-
ter two years of famine brought about by
a natural catastrophe in 1815. The festi-
val was planned for the king’s birthday
on September 28.
well known but is just as successful.
“The two southern states have al-
ways been competitors, and they’re al-
ways keeping an eye on each other,” says
Friedrich Heinemann, head of corporate
taxation and public finance at the Cen-
tre for European Economic Research in
Mannheim. “The two are close ideologi-
cally. They’re both traditional strongholds
of the conservative Christian Democrats.
Many of the big international industrial
groups have their headquarters in south-
ern Germany, and in Baden-Württemberg
there are also a large number of small and
medium-sized enterprises that are incred-
ibly successful.”
Stuttgart, the capital of Baden-Würt-
temberg, has enjoyed tremendous growth
2007-11-23 13:56:29
 for a number of years. Daimler has its
headquarters here, as do sap and Bosch,
but many small and medium-sized com-
panies in the electrical, engineering,
chemistry and it industries have enjoyed
amazing success. A new exhibition center
recently opened next to the airport, and
by September it was already fully booked
through Christmas.
“Germans are
feeling a new sense
of pride about
west or between north and south will
grow. “The eastern states are catching
up to the rest of Germany, although it’s
going very slowly,” he says.
Despite major regional differences
and an international economy that has
been shaky this year, things are going
well for Germany as a whole. After a
number of years of stagnation and an-
nual gnp growth between 2001 and
2005 of only about 0.7 percent, gnp in
2006 rose a healthy 2.2 percent over the
previous year.
Nonetheless, Heinemann is concerned
that the government has lately expressed
adverse effects on the economy, not im-
mediately, but over the medium term,”
he says.
GERMANY HAS A STRONG reputation
as an industrial nation with large compa-
nies like Siemens, bmw, Daimler, Bayer,
basf and sap. But the country also has
many mid-sized and smaller industries.
Like other industrial nations, Germany
has undergone numerous restructurings,
but the industrial sector still constitutes
the backbone of the German economy.
Germany has enormous exports, almost
one trillion euros, and has been described

▲
a willingness to backtrack on the exten- as an “export champion.” Roughly one-
their country.” sive reforms carried out in the labor mar- third of gnp goes to exports. Baden-
ket, pensions and taxes. “That may have Württemberg is the state that is most de-
The rules for how research funds are
allocated among the different states were UNEMPLOYMENT IN GERMANY’S FEDERAL STATES (percent)
recently changed. Competition has inten-
sified, and the latest allocations resulted In September
2007, unemploy-
in the eastern states receiving no fund- ment in Germany
ing at all while Baden-Württemberg and was 8.4 percent.
Schleswig-
Bavaria wound up with the bulk of the The lowest rate, Holstein
money. This will naturally favor south- 2.7 percent, was in 7.8 Mecklenburg-
Vorpommern
Biberach district,
ern Germany even more. Baden-Würt- Hamburg 14.8
Bavaria and Baden-Württemberg com- temberg, and HAMBURG
the highest was 8.7
pete not just economically, but also in the Bremen
in Uckermark, BREMEN
entertainment field. Munich has its Okto- Brandenburg, in 12.3
berfest, but Stuttgart has the Cannstatter the former East Niedersachsen
Berlin
Volksfest, a beer festival that is almost as Germany, 21.1 8.4 BERLIN
large. When the last beer was poured on
percent. HANNOVER 14.9
the evening of October 14, a record 4.5 Brandenburg
million visitors had attended the festival Saxony-Anhalt 13.8
– yet another sign that times are good. DORTMUND 15
North Rhine-Westfalen
On October 3, 1990, the German 9 LEIPZIG
Democratic Republic ceased to exist, and Saxony

SOURCE: STATISTIK DER BUNDESAGENTUR FÜR ARBEIT - STAND SEPTEMBER 2007 (DZ/AM)
the Federal Republic of Germany now BONN Thüringen 13.9
consists of 16 states. Integrating the east- 12.1
Hessen
ern states into the Federal Republic is still 7.2
a costly process. Dizzying sums, over a FRANKFURT
trillion euros, have been invested in uni- Rhineland-Palatinate
fying the country so far, but unemploy- 6 KAISERSLAUTERN
ment in the former East Germany is still Saarland NUREMBERG
twice as high as in the west. 8.1
“People living in the west like to say Bavaria
they feel solidarity with the east, but they STUTTGART
4.8
can’t understand why it’s taking so long,”
Baden-Württemberg
says Mai-Brith Schartau, a professor at
4.7 MUNICH
Södertörn University College.
However, Heinemann of the Centre
for European Economic Research doesn’t
think the differences between east and

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 SHAPE COVER

pendent on exports, which also means
that it is more vulnerable than other parts
of Germany in the event of a major slump
in the international economy.
The German labor market can be de-
scribed as a social market economy in
which labor conflicts are rare. Through-
out the 1990s, workers went on strike
an average of 12 out of 1,000 workdays.
The corresponding figure for the whole
of the eu was 84 days.
Germans are feeling a new sense of
pride about their country. The black-
red-and-yellow flag now flies atop many
a flagpole, something that never hap-
pened before. Chancellor Angela Merkel
has received positive reviews in interna-
tional contexts, and Germany’s tenure
as EU president was a great success, as
was its hosting of the World Cup in soc-
cer. “Obviously, Germans were proud
of their country before, but they didn’t
show it,” says Schartau of Södertörn Uni-
versity College. “Now they dare to ex-
press it because Germany has done things
that have played an important role in in-
ternational contexts.” ▲
GERMANY IN BRIEF
Capital and largest city: Berlin
Population: 82 million
Population density:
236 inhabitants/km 2
President: Horst Köhler
Chancellor: Angela Merkel
GNP growth (forecast 2007): 2.4 %
Inflation (2006): 1.7 %
National holiday: October 3
Country code +49
PERSONAL CARE
In Germany, the market for diapers and
sanitary napkins is dominated by retail-
ers’ own-brand products.
“Roughly 50 percent of diaper sales
consist of own-brand products,” says
Svein Ryan, regional head of personal
care, Central and Eastern Europe.
“Compare this to Scandinavia, where
90 percent of diapers come from Libero
or Pampers.”
SCA’s sales of baby diapers in Ger-
many are between EUR 40 and 45 mil-
lion. Customers include Aldi, Lidl and
Drogeriemarkt.
There has been a sharp increase in
pant diapers, with growth of about 20
percent annually.
“SCA has a market share for pant
diapers of between 65 and 70 percent,”
Ryan says.
Sales of TENA incontinence protec-
tion are also increasing, but mainly
among retailers. The German state has
become more restrictive on the sale of

SCA IN GERMANY
incontinence protection by prescription.

Germany is by far SCA’s largest market.
Sales totaled USD 1.9 billion in 2006, and some
5,600 people are employed there.
TISSUE
Tempo, those highly familiar hand-
kerchiefs, is today one of SCA’s tissue
brands. For many Germans, the Tempo
brand is synonymous with handker-
chiefs.
“We’re proud of having the Tempo
brand in our portfolio. Tempo was
along with other product names
included in the purchase of Procter &
Gamble’s European tissue operations,”
He also says that the industry in gen-
eral is being pressured by higher costs
for things like energy and raw materi-
als, which SCA has to compensate for.
Total sales: USD 1.9 billion Empoyees: 5,637
(Dec. 31 2006)
U m
PACKAGING
SCA Packaging recently launched
X-tra Services in Germany, a concept
whereby customers are offered a com-
prehensive solution for packaging and
related services and operations.
“The trend is toward more custom-
ized solutions for customers with more
services being provided by our com-
pany,” recalls Marc Stabernack, head of
marketing for Middle Europe.
The first nine months of 2007 were
very good for SCA Packaging in Ger-
many.
“Last September , we exhibited
at the major German packaging trade
show ‘FachPack’ in Nuremberg with a
400 m stand which attracted a lot of at-

tention. This has meant really positive

SD pl
E

says Bernhard Riede, vice president tis-

22oye

feedback for our operations as well,”

5 es
m :2

sue sales and marketing. says Stabernack. “Things are also going
ill 7

USD 719 million

io 7

The acquisition was announced back Employees: 2,919 well for the whole country right now,
n

in March, but only in September did the USD 292 million both for businesses in Germany and for
Employees: 32
EU approve the deal. exports, which are on the rise.”
“The deal was closed on October 1
and we are gradually integrating the
operations. One step was taken on
USD 632 million
Employees: 2,409
FOREST PRODUCTS
December 1, when all systems were SCA Forest Products has no production
transferred to SCA.” in Germany, but it’s an important mar-
It’s still too early to say what the ket for printing paper from Laakirchen,
future will look like. Austria, and Ortviken, Sweden. In addi-
“We’re still doing the work to de- FOREST PRODUCTS PACKAGING tion, one of the business area’s largest
velop our strategy for our new brands,” TISSUE PERSONAL CARE sales offices is in Mettmann, in North
Riede says. Rhine-Westphalia.▲

14*SCA SHAPE [ 4*2007 ]

SHAPE_EN_407_04_cover.indd 14 2007-11-23 13:57:11


Wei Wei and Huang Yi Xin acting out in front of the webcam
YOUTUBE
SEVENTH HEAVEN FOR AMATEURS
It’s a world ruled by nerds, activists and teenagers with a taste for
nudity, accidents and heavy irony – a place every marketer in the analog
world should have gone out of their way to avoid. But today companies
are lining up to be seen on the video Web site YouTube.
TEXT MATTIAS ANDERSSON
MILLIONS OF PEOPLE have done it
without leaving any lasting impression
on history – miming or playing air guitar
to a favorite song in front of the mirror or
at a party.
But trade the mirror for a webcam
and a handful of partygoers for that gi-
gantic living room known as the Inter-
net and the concept is suddenly loaded
with completely new potential.
Wei Wei and Huang Yi Xin know all
about it. These two Chinese students
from the Guangzhou Arts Institute re-
corded and edited favorite songs to en-
tertain themselves and their friends us-
ing their university’s intranet.
But the results were so comical that
their enthusiastically mimed version of
the Backstreet Boys’ “As Long As You
Love Me” spread across YouTube and be-
came a hit among the Web site’s visitors.
At the same time, people at the Shang-
hai office of Ogilvy, the international
advertising firm, were on the lookout for
smart concepts to market their customer
Motorola’s inexpensive phones in China.
It took just a few weeks to go from
concept to fi nished ad.
The only change the Motorola/Ogil-
vy team made in the Chinese students’
SHAPE_EN_407_05_trend.indd 15
, and marketing on YouTube begins.
fi lm was the addition of a short break.
One student gets a call on his cellphone
from his girlfriend.
“You barely see the phone,” says
Christian Nord, a specialist in digital
media marketing at Ogilvy’s office in
Stockholm. “It’s not the product that
plays the leading role but the guys. The
ad was a huge success not just in China.”
THE PHENOMENON of YouTube, a
Web site whose users upload material
they’ve produced themselves or their own
favorite clips, has become the hottest In-
ternet Web site for marketing – which is
why Google, the publicly held Web giant,
paid usd 1.65 billion for the site last year.
Companies and organizations are
now lining up to market themselves on
YouTube – which makes competition,
already tough, very intense.
“The audience is fussy, and you’re
competing with Saturday Night Live
and other material from the best enter-
tainers in the world, dramatic videos
from accidents and catastrophes, origi-
nal home-grown productions and nu-
dity,” Nord says.
To get viewers, you have to give the
audience what they want. ▲
TREND
PIONEERS ON
THE WEB
■ As early as the late 1990s, SCA
was on the Internet with a Libero
Web site for pregnant women and
the parents of small children.
Long before Facebook,
MySpace, here was a site that
mixed ads for baby strollers with
advice about breast-feeding.
“We were able to get online so
early and be ‘right on target’ be-
cause we’ve always had a dia-
logue with thousands of par-
ents,” says Sofia Hallberg, head
of communications for Libero.
Today, Libero’s “yoga video,” with
its baby in diapers taking over her
mother’s yoga class, is among the
favorite commercials on YouTube.
Libero.se has 150,000 unique visi-
tors a month and a social function
that goes beyond marketing diapers.
One relevant example where
SCA actively uses new meth-
ods and channels in its market-
ing is “the Tork revolution.”
Basically, it’s a question of rebrand-
ing three different brands mainly in
the US into one global brand, Tork.
In a series of commercials, which
are also found on YouTube, the pa-
per revolution is being launched
using humor as its weapon.
See it for yourself: libero.se, you-
tube.com and torkrevolution.com
[ 4*2007 ] SHAPE SCA *15
2007-11-23 14:01:29
 TREND

ENVIRONMENTA
WORK SAVES
MONEY
needed here is a series of measures to
European highways are carrying an increasing break the trend.” He thinks one of the
amount of freight, causing environmental changes most important measures for quickly
lowering emissions is to reduce the use
we see today. Businesses are focusing on the prob- of fossil fuels like gasoline and diesel.
“Today, carbon dioxide cannot be
lem of carbon dioxide emissions, which is reduc- eliminated, so what’s needed is the in-
ing the environmental impact and saving money. troduction of new technology and new
fuels to reduce the emissions of fossil
TEXT MIKAEL GIANUZZI PHOTO GETTY IMAGES carbon dioxide by freight traffic,” Sjödin
says. “To speed this introduction, what’s
needed most of all is the establishment of
ACCORDING TO the Stern report, the percent of carbon dioxide emissions from effective means of control, because the
British government’s review of the eco- road transportation and freight account- technical solutions already exist.”
nomics of climate change, about 14 per- ing for 40 percent, suggests that road Most countries in the world have signed
cent of all emissions in the world come freight transportation accounts for some- on to the United Nations’ goal of reducing
from the transportation of freight. Road thing on the order of 4 to 5 percent of all greenhouse gas emissions. The long-term
transportation accounts for 10 percent. carbon dioxide emissions in the world. goal means in practice that global emis-
However, there are no statistics on what “Greater growth leads to more freight sions must be cut in half by 2050.
percentage of these road transportation transportation, and there is no single so- In the business world, there has been
emissions in turn comes from freight lution to the carbon dioxide problem,” growing awareness of climate problems,
transportation. An estimate based on says Åke Sjödin, transportation special- and an increasing number of companies
European conditions and statistics, with ist at the ivl Swedish Environmental have not just adopted an environmental
personal automobiles accounting for 60 Research Institute. “Rather, what is policy but have also turned their words

16*SCA SHAPE [ 4*2007 ]

SHAPE_EN_407_05_trend.indd 16 2007-11-23 14:01:39


NTAL
Environmental work can
be very profitable if it’s
done the right way
into deeds. In Sweden, companies like
Preem, Trelleborg, Södra and Perstorp, in
collaboration with the Swedish Road Ad-
ministration, are now developing tools to
help transportation purchasers place de-
mands on their suppliers in terms of safety
and the environment. The focus of envi-
ronmental demands is on fuel consump-
tion and emissions of carbon dioxide, ni-
tric oxides and particles. The work will be
ready in February 2008.
Ulf Hammarberg, environmental
manager at the logistics company dhl,
notes a considerable increase in the
number of customers who want help in
their environmental work. Demand for
the company’s green services is grow-
SHAPE_EN_407_05_trend.indd 17
ing, albeit from a low level, and aware-
ness is increasing among customers that
their own company’s actions have envi-
ronmental consequences.
“For instance, we get more and more
questions from customers about our
emissions reports,” he says.
IN GENERAL , Scandinavian com-
panies are at the forefront in terms of
environmental work, but those spear-
heading the movement are found inter-
nationally. That’s the view of Magnus
Swahn, a consultant in sustainable lo-
gistics at the company Conlogic.
“The companies that have come far-
thest are those that have integrated en-
vironmental issues with business logis-
tics,” he says. “Environmental work can
be very profitable if it’s done the right
way. For instance, Nike really pushes
the idea of optimal flows on the types of
traffic that use the fewest resources.”
As for transportation, there are great
environmental and economic gains to be
made in every type of transportation.
“It’s a question of making transporta-
tion as resource-efficient as possible,”
Swahn says. “It means filling trucks to
the max, lowering the speed of ships by
a few knots and making sure there is a
berth available for docking instead of be-
ing forced to wait to enter the harbor.”
He thinks eco-driving, which is a
method of driving cars in an environ-
mentally friendly way, and planning
can save 10 percent in operating costs
for rail transportation, but also for oth-
er methods of transportation.
“The forest and paper industry start-
ed early and acted professionally,” he
says. “They realized early on that there
was big money to be saved by being fru-
gal with resources.” ▲
MINIMAL ENVIRON-
MENTAL IMPACT IS
THE GOAL
■ At SCA Transforest in Sunds-
vall, Sweden, a test is now be-
ing conducted on synthetic die-
sel made from natural gas.
“In the long term, we expect it
will be possible to produce synthet-
ic diesel from biomass, like forest
waste, and completely stop pro-
ducing carbon dioxide,” says Peter
Eriksson, logistics and environmen-
tal manager at SCA Transforest.
Eriksson’s goal is to reduce de-
pendence on fossil fuels and thus cut
the environmental impact of SCA’s
shipments to a minimum. Synthetic
fuel made from biomass produces
no carbon dioxide, while the con-
tent of other substances that have
an impact on the environment is less
than that of regular diesel. During the
test period, a truck is being driven
in-house between SCA’s plants and
freight terminal in Sundsvall on syn-
thetic diesel. If the outcome of the
test is satisfactory, more cars will
run on synthetic diesel over the long
term. SCA Forest Products is test-
ing synthetic fuel on one of its lum-
ber trucks in the Sundsvall region.
“The advantage of synthetic
diesel is that it can be used in the
same engines as those using regu-
lar diesel,” Eriksson says. “The cost
is about one Swedish krona ($0.15)
more a liter, but there are lower
emissions of most substances.”
Seventy percent of all freight trans-
ported by SCA is by sea, and trans-
portation here has been made more
efficient. Ships that sail fully loaded
from ports on the coast of northern
Sweden down to Germany, Britain
and the Netherlands return almost ful-
ly loaded with items like return fiber
pulp, which is recycled into produc-
tion in SCA’s plants in Piteå and Umeå.
“We also ship freight for oth-
er companies,” Eriksson says.
Twenty percent of SCA’s trans-
portation is by truck. Environ-
mental work here involves steps
like optimally filling trucks.
The remaining share of SCA’s
freight, about 10 percent, is by rail.
[ 4*2007 ] SHAPE SCA *17
2007-11-23 14:01:51
 TREND
by Chinese companies,” Lagerwall says.
In South Korea, 166,189 patents were
applied for.
“China says it wants to be in the lead in
patent applications in a couple of years,”
says Solgun Drevik, a product developer
at sca whose name is on more than 50 of
the company’s patents.
A growing number of patent applica-
tions in growth markets are being filed
by Western companies, who now want
to protect their patents globally. These
companies applied earlier for patents
only in Europe and the us.
The us accounts for one out of three
patent applications in the world, almost
twice as many as second-place Japan. Eu-
rope is still strong, with six of the top 10
countries in terms of patent applications
in 2006. Next, in descending order, come
Germany, South Korea,, France, Britain,
the Netherlands, China,Switzerland and
Sweden.
Growth markets account for only 8.3

PATENTS
percent of patent applications, but the
number is quickly rising. Besides China
and South Korea, other countries experi-

moving east
encing increases include India, South Af-
rica, Brazil, Mexico and Singapore. ▲

100 PATENTS A YEAR

The number of patent applications is increasing ■ “At SCA, we apply for around 100
rapidly in Eastern European countries and East patents a year, with 50 or 60 of
these in Personal Care,” says Paul
Asia. Since 2000 the number of applications filed Winblad, head of patents at SCA.
“We get temporary protection via
in a year has increased 9 percent in South Korea the Patent Cooperation Treaty for

and 26 percent in China. 30 months. Then we continue in a

TEXT PER ÖQVIST
“AMONG THE 20 COMPANIES that
applied for the most patents in 2006,
seven were in Asia, much more than in
the past,” says Boel Lagerwall, head of
marketing at Awapatent, one of Europe’s
leading consultancy firms in intellectual
property rights.
In both Eastern Europe and East Asia,
where products from the West have long
been copied illegally, interest in interna-
tional patent systems is growing. People
there are increasingly careful about fol-
lowing international conventions be-
cause they want to attract foreign capital,
and also because they are now more and
more at the forefront of developments
themselves and want to protect their own
products from illegal copying.
More Chinese companies’ products
can compete internationally. Among
the big Chinese brands are Lenovo, the
world’s third-largest pc manufacturer,
and tcl, the world’s largest tv manufac-
turer by volume.
“More than 200,000 patents were ap-
plied for in China in 2006, most of them
few strategically important
countries.”
SCA applies for patents in 14
countries a year on average. Simple
inventions that are easy to copy on
a broader level may be covered by
patents in 30 or 40 countries.
Expensive, complex inventions are
protected in only four or five major
markets, often Germany, France,
Britain, the US and Japan or China,
and sometimes in Australia as well.
Nine out of 10 applications result
in a patent because these have been
so carefully prepared. Some 30
patent engineers and administrators
are employed full-time to handle
patent applications and related
fields like pattern protection.

18*SCA SHAPE [ 4*2007 ]

SHAPE_EN_407_05_trend.indd 18 2007-11-23 14:02:23

SCA
 Ad in France saying that
SCA Packaging knows
how to make packaging
that makes you want to
buy the product.

C r é e r l’ e n v i e d ’a c h e t e r
c ’ e s t n ot r e m é t i e r

U n emballage réussi est capable à lui seul de déclencher

l’envie d’acheter. Pour optimiser la performance de vos
produits, SCA Packaging Nicollet met toute son expérience de leader
et sa créativité au service de votre projet d’emballage. Une équipe
dédiée travaille en partenariat avec vous, de la réflexion marketing à
la fabrication, en passant par la conception, le design, le graphisme…
L’essentiel est le résultat : créer l’envie d’acheter.

w w w. S CA PAC k Ag i N g . f r

SCA Packaging Nicollet

[ 4*2007 ] SHAPE SCA *19

SHAPE_EN_407_05_trend.indd 19 2007-11-23 14:02:37

SCA_NicolletAd_203x265_FR.indd 1 11/9/07 11:36:58 AM
 PROFILE

Customers and employees favor companies with heart and

soul that stand for something more than just their products,
says MATS LEDERHAUSEN, who pursues investments that
do more than make money.
TEXT JONAS REHNBERG PHOTO EVA EDSJÖ/VOL

A PASSION
FOR PURP
t o Mats Lederhausen, a former head of
global strategy at McDonald’s Corpora-
tion, corporate social responsibility (CSR)
goes way beyond positive image building:
“All human beings have a responsibility
to help make our society better, and business is no
exception. I also think employees and customers
increasingly want their companies to be part of so-
lutions and not part of problems.”
Lederhausen recently left his senior management
largest economies are businesses, and people all
over the world trust them more than they trust
politicians.”

AS A BUSINESS SCHOOL graduate with an en-

position to devote more time to his newly founded
company Be-Cause. The company identifies and
supports entrepreneurs who share his own visibly
heartfelt passion for businesses with a purpose big-
ger than their products.
Entrepreneurs and companies have an important
role to play in today’s world, he argues.
“For better or for worse, businesses have be-
come the most powerful institutions on this plan-
et,” he says. “More than half of the world’s 100
trepreneurial soul inherited from his father Paul,
who started the first McDonald’s franchise in the
family’s native Sweden in 1973, Lederhausen is con-
fident that CSR in no way precludes sound business.
He believes the critical point of departure is that we
stop thinking about doing well and doing good as
mutually exclusive dimensions of life.
“They are not, and we have to do both,” he says.
“We will never solve our challenges if the solution
is that companies go bankrupt in the process. The
only way forward is to find small steps every day
to integrate good, smart, intelligent solutions that
help companies grow, people thrive and societies
prosper.”
Globalization and climate change are two trends

20*SCA SHAPE [ 4*2007 ]

SHAPE_EN_407_05b_profil.indd 20 2007-11-23 14:07:48


RPOSE
“For better or for
worse, businesses
have become the most
powerful institutions
on this planet.”
Our governments are too large
for the small problems of life and too
small in spirit for the large ones.
SHAPE_EN_407_05b_profil.indd 21
MATS ON :
■ WHY A COMPANY SHOULD
ACT RESPONSIBLY AND TAKE
A STAND:
★ It is the right thing to do.
★ You attract smarter, better
and higher-energy people.
★ Eventually, customers will
reward you for it.
■ THE FUTURE OF CAPITALISM:
“I passionately believe that if we
all made investment decisions
with a long-term perspective,
we would have a more human
and more attractive form of
capitalism. But we tend to be
short-sighted because we want
good deals quickly.
“I think there are promising
tendencies. Many private equity
companies, for example, adopt
a time frame of at least three to
five years on their investments.
Since they are not public, they
can often disregard the short-
term impact of a decision.
“Looking ahead, I would
▲
hope we could introduce some
type of incentive that puts
a premium on wealth that is
created by creating real jobs,
real products and real brands
with lasting values rather
than short-term investing.”
NAME: Mats Lederhausen
AGE: 44
LIVES: Oak Brook, Chicago
FAMILY: Wife, Dr. Jessica
Lederhausen and their four
children 18, 17, 15 and 11 years old.
CAREER: Began his career with
McDonald’s in 1979. The Boston
Consulting Group in London 1988
- 1990. Managing director and
joint venture partner for McDon-
ald’s Sweden 1990-1993. Head of
global strategy for McDonald’s
Corporation 1999-2003. During
the next four years Mats played a
key role in shaping the agenda
that helped McDonald’s complete
one of the most successful
corporate turnarounds in recent
history. McDonald’s Ventures
2003-2006. His newly founded
company Be-Cause 2007-
www.be-cause.com
[ 4*2007 ] SHAPE SCA *21
2007-11-23 14:08:00
 profilE
that have added tremendously to the complexity of
doing businesses, particularly considering differ-
ences in stakeholder readiness for these challenges.
Lederhausen agrees that the trends are as significant
as they are difficult.
“All countries operate from different perspectives
with distinct habits, cultures and norms. Acting re-
sponsibly in one culture can sometimes be seen as
irresponsible in another,” he says, yet he believes
globalization is a good thing.
“Like everything else in life we have to help offset
some of its problems, but we can’t throw the baby out
with the bathwater by proclaiming it is all bad,” he
says. “Look at all the people in the world that have a
chance to permanently be lifted out of poverty in the
next generation. That’s a beautiful thing.”
In addition, globalization and techno-
logical advances have made companies almost com-
pletely transparent, says Lederhausen. He sees com-
panies taking on a bigger role – because they have
to and because people expect them to.
“Our governments are too large for the small
problems of life and too small in spirit for the
large ones,” he says. “People want organizations
to stand for something. They are hungry for real
companies that are both smart and effective but
also show they have a heart and soul and care about
more than themselves.”
As a result, Lederhausen says, more
and more people are looking toward companies
that demonstrate heart and soul by acting respon-
sibly. From a strict business perspective, respon-
sible companies do better both in terms of sales
and in terms of being able to recruit better people,
he argues, while admitting the correlation is hard
to quantify.
“The results of CSR activities are almost impos-
sible to divorce from other normal business activi-
ties,” he says. “A company could for instance have
a great environmental program that its customers
liked, but it could still have poor customer service.
Ultimately, it’s hard to say which of the two factors
would have a bigger impact on financial results.”
Lederhausen argues that it’s vital for a company
to identify its soul, which often gets lost as small
companies grow into big corporations.
“Any organization must be clear about who it is
and define its raison d’être,” he cautions. “Orga-
nizations without soul lack energy and will ulti-
mately fail to connect with their most important
22*SCA SHAPE [ 4*2007 ]
SHAPE_EN_407_05b_profil.indd 22
stakeholders and become a place that employees
simply view as somewhere to spend time between
nine and five. This will not inspire anyone, which
eventually will be felt by the customers.”
Consequently, it is critical for a successful com-
pany to have a purpose in order to inspire custom-
ers and staff. If lost, how can you recover it? Start
by identifying your roots, says Lederhausen:
“Most companies are born from inspiration,”
he says. “Very few entrepreneurs start businesses
just to make money. Rather, that initial spark was
often the result of a need they saw people truly had.
Unfortunately, over time this idea gets buried in
bureaucracy and process and loses its power. My
job is to help companies awaken the power of that
Organiza- original inspiration again.”
tions without Lederhausen aims to pursue this task as head
of the newly founded company Be-Cause, which
soul lack invests in entrepreneurs who both make a profit
energy and and contribute to society.
will ultimate- “I’m not really a corporate guy,” reflects Leder-
hausen. “I prefer being an entrepreneur than a big
ly fail to shot in a big company, and I have always regard-
connect with ed myself as a kind of business philosopher who
their most is more concerned with the why’s instead of the
what’s and how’s.”
important
stakeholders In addition, he remains a senior adviser to
McDonald’s, particularly on asset management
and become and corporate reputation issues such as CSR and
a place that brand trust. This role is likely to touch on the
employees growing concern over whether the fast-food in-
dustry contributes to obesity and poor health. Le-
simply view derhausen acknowledges the problem but claims
as somewhere the initial focus on fast food was misdirected and
to spend time a bit narrow.
“Americans eat less than one percent of their
between meals at McDonald’s,” he says. “Simple math sug-
nine and five. gest that almost everywhere people eat contrib-
utes to obesity. McDonald’s has actually done a
remarkable job in this area. If you look at their
menu today and all the products, information and
investments they have made trying to help people
eat better, I get really inspired.”
As a visionary thinker in the corporate world,
Lederhausen is certain to inspire a lot of people,
and his Be-Cause baby does its share. To inspire
investors and other stakeholders, he quotes Re-
naissance artist Michelangelo: “The greatest
danger for most of us is not that our aim is too
high and we miss it, but that it is too low and we
reach it.”▲
2007-11-23 14:08:18
 Mats Lederhausen does
not see himself as a corporate
guy. He prefers being
an entrepreneur.

SUSTAINABILITY – SOME
EXAMPLES FROM SCA:
★ SCA grows more than 80 million
new forest seedlings every year. It is an
investment in oxygen and raw material.
★ SCA is one of the world’s largest
suppliers of FSC-certified products.
★ SCAs products mainly contain renew-
able raw materials.
★ No paper company in Europe collects
or uses more recycled paper than SCA.
★ SCA plants three trees for every
one felled.
★ All of SCA’s publication papers are
produced from pulp that is bleached
without using any chlorine chemicals.

[ 4*2007 ] SHAPE SCA *23

SHAPE_EN_407_05b_profil.indd 23 2007-11-23 14:08:33

 TECHNOLOGY

In the past few decades, a series of environmental measures

have been implemented at Östrand’s pulp mill in Sundsvall,
Sweden. Totally chlorine-free bleaching (TCF), a high degree
of system closure of the bleach plant’s white water and effective
biological effluent treatment have together produced the
best results for forest industry wastewater ever measured by
the IVL Swedish Environmental Research Institute.
TEXT SUSANNA LIDSTRÖM ILLUSTRATION LEIF ÅBJÖRNSSON

From environmental culprit

to fish’s best friend

c hlorine bleaching, sulfur

emissions, foul-smelling
gases − over the years, the
pulp industry has not had
the best environmental reputation. The
past few decades, however, have seen
enormous progress, in terms of both
process improvements and additional
cleaning techniques to minimize harm-
ful emissions.
A number of major efforts are now un-
der way at sca. At Östrand’s kraft pulp
mill outside Sundsvall, Sweden, a new
type of biological water purification that
imitates a natural ecosystem has been
used for several years.
sca Forest Products’ environmental
director Roine Morin describes the large
number of process improvements that
have been implemented since the early
1980s. The most significant change is
a sharp decrease in water consumption.
Traditionally, the main problem in pulp
production has been getting lignin, the
compound that serves as glue between
wood fibers, to dissolve in water. In the
past, enormous quantities of water were
used to wash this out. The pulp pumped
into the bleach plant had a high lignin
content, and chlorine was still used to
make the lignin water-soluble so it could
be washed out from the system.
“Before 1980, 120 cubic meters of wa-
ter were used for each ton of pulp pro-
duced,” Morin says. “In an intermediate
phase, when oxygen bleaching was intro-
duced, even though some chlorine was
used in post-processing, we managed to
bring that figure down to 45 cubic meters
per ton of pulp. Since 1996, when chlo-
rine was completely eliminated, we’ve
succeeded in getting it down to 7 cubic
meters per ton of pulp.”
ORIGINALLY, ONCE CHLORINE was
eliminated, the idea was to make the
bleach plant’s water system totally closed.
Because the washing water does not con-
tain chlorides, the water could in theory
be recycled and all the substances in the
process retained.
“But the low volume of water result-
ed in such high concentrations of some
chemicals that the compounds were no
longer water-soluble and caused scaling,”
Morin says. “Therefore, we had to open
up the system again so we had to allow a
little wastewater anyway.”
There were still marked improvements.
The adjustment to chlorine-free bleaching
led to sharp reductions in wastewater vol-
umes. Moreover, the water was less toxic
than before and more easily biodegrad-
able. As for the lignins and other organic
compounds carried in the wastewater,
there was still more work to be done. The
problem with these is that they consume
oxygen. Of course, major progress had
been made since the 1980s, when chemi-
cal oxygen demand (cod) reduction in
water purification was only between 30
and 40 percent.
“When oxygen bleaching was intro-
duced, the results were better − 50 per-
cent of cod could be eliminated,” Mo-
rin says. “Now in the 2000s, we can’t do
anything more about solutions for bleach
plants in terms of the processes involved
in production. Furthermore, the environ-
mental requirements have become strict-
er. So we’ve introduced a completely new
effluent treatment technique.”
He explains how the new effluent treat-
ment plant imitates a natural ecosystem
(see illustration). The fact that the modern
effluent treatment system handles such
low volumes of water means it’s also eas-
ier to control the process.
“Before, there were these gigantic
ponds of hundreds of thousands of cubic

24*SCA SHAPE [ 4*2007 ]

SHAPE_EN_407_06_teknik.indd 24 2007-11-23 14:09:07


Nitrogen Phosphorus
Air
HOW IT WORKS
■ Air is blown into the collected
wastewater, forming an environment
that, once nutritive salts like nitrogen
and phosphorus are added, is opti-
mal for bacteria to begin growing on
their own. The bacteria then use the
oxygen-consuming compounds in
their metabolism, allowing the com-
pounds to be broken down.
Similar processes with different
types of bacteria are repeated step
by step in the wastewater so that
the breakdown of oxygen-consum-
ing compounds is as complete as
possible.
In the final phase of purification,
there are multicellular organisms like
amoebae and bell animalcules. These
consume the smaller organisms that
have formed unwanted sludge floc-
cules in the process. As a result, there
is less excess sludge in the end.
meters,” Morin says. “It was a constant
struggle back then to maintain a balance
between all these forms of life, to get them
to work together in such large volumes.”
In the 1980s, the water flow from the
plant. was 100,000 cubic meters a day
and the retention time for effluent treat-
ment was five days. Today, the volume
of wastewater is down to 30,000 cubic
meters a day with a retention time of 12
SHAPE_EN_407_06_teknik.indd 25
STEP BY STEP
TO CLEANER
WASTEWATER
■ Biological effluent treatment using
bacteria is in itself nothing new, but the
technique has become more sophisti-
cated as a result of several specialized
steps being introduced to break down
harmful compounds. At Östrand’s pulp
mill, a new type of combination process
called Multibio® is being used. The idea
is to start with individual cells and finish
with large floccules and multicellular
organisms. In between is an important
step that involves what is known as a
biofilm — a film of bacteria growing on a
plastic surface — which works as a kind
of safety net. The biofilm withstands dis-
ruptions better than free bacteria floc-
cules and provides protection against
sudden large-scale emissions of toxins.
Air
hours, and cod reduction has improved
to 75 percent.
“This has a strong positive impact on Air
the surrounding environment since, after
treatment, the water flows into the Sunds-
vall Bay,” he says.
The wastewater has now been tested
by ivl. In one part of the investigation, ENVIRONMENTAL
an analysis was done on how the waste MILESTONES FOR THE
from the pulp plant affects fish and crus-
taceans. The species tested was the ze-
PULP PLANT
bra fish, a common aquarium fish, and COD* (kg per ton of pulp)
measures were taken of toxicity, rate of
growth, distribution by sex and ability
to reproduce. The investigation was car-
100
ried out on two generations to determine
if there were any disturbances in second
20
60
12
generation. However, there was no hint
of any such trend − the zebra fish were
healthy and thrived in the wastewater 1970s 1982 1996 2004
throughout the testing period. Chlorine- Oxygen- Totally Biological
“The conclusion is that in normal op- bleaching bleaching chlorine- effluent
free(TCF) treatment
erations, no negative effects are to be ex-
*COD (chemical oxygen demand)
pected in the ocean environment where is one way of measuring the oxygen
the waste runs out,” Morin says. ▲ consumed chemically.
[ 4*2007 ] SHAPE SCA *25
2007-11-23 14:09:22
 SCA INSIDE
LIBRESSE
DESIGN PRIZE
GOES TO NORWEGIAN
CAMILLA NHU Quynh Bui, a Nor-
wegian, won the Libresse Nordic De-
sign Challenge. Camilla is 16 years
old and will see her design in all 180
stores of the jc apparel chain, locat-
ed across the Nordic countries.
Libresse announced the compe-
tition last summer, which gave peo-
ple in the Nordic countries who were
interested in design an opportunity
to create their own pattern for pant-
ies. The response was huge. Nearly
90,000 entries were submitted, and
roughly 50,000 young people took
part in the Challenge – which makes
it the largest design competition ever
in the Nordic countries.
Sorbent Clean & Fresh
– targeting little bottoms
SORBENT HAS LAUNCHED
a new Australian campaign to
increase consumer awareness
of its Clean & Fresh moist wipes.
Sorbent already maintains
strong market leadership in the
moist wipe segment with a 66
percent value share, compared
with Kleenex Flushables at 34
percent*. However, research
indicates that consumer aware-
ness regarding the use and
benefits of toilet wipes con-
tinues to be the key to driving
growth in this segment.
As a result, the Sorbent team
has developed a new adver-
tising campaign specifically
26*SCA SHAPE [ 4*2007 ]
SHAPE_EN_407_07_inside.indd 26
The kick-off for the competition
was the launch of Libresse Design Edi-
tion, a collection of uniquely designed
packages for sanitary pads. Out of this
came the idea of initiating a creative
competition for young people inter-
ested in design. Last July and August,
people were able to use an advanced
drawing program on Libresse’s web-
site to design their entry by choosing
among templates, ready-made figures
and drawing free-hand.
“The interest was fantastic and
the quality of the entries was con- Websites, I’ve known for a long time
sistently very high,” says Margareta that our visitors were creative, but this
von Renteln, who is in charge of Li- result shows we’ve found something
bresse. “With the high traffic on our that affects many people.”
targeting young families, who
are the key users of the prod-
uct and make up 50 percent of
moist wipe purchases**.
The campaign features a
four-week outdoor media
advertising schedule that
started October 28.
This initiative aims to cre-
ate awareness among young
mothers about the benefits
of introducing Sorbent Clean
& Fresh wipes into their
child’s toilet routine.
* Aztec Scan Data MAT 23/9/07
** Aztec ShopperView IHP Na-
tional Panel MAT 5/8/07
2007-11-23 14:11:38
 LIBERO’S STRETCHIEST diaper
ever has been launched in Sweden,
and other countries are coming
soon. The new stretchy diaper was
designed by Karoline Lenhult, a
mother of three children, and has a
more functional design. The diapers
are marked with a smart color code
that alerts parents when it is time to
change to the next size.
“We are very proud of our new Li-
bero diaper, which makes everyday
life easier for parents at the same as
we make adaptable diapers for dis-
covery-hungry children who now can
move freely without leakage,” says So-
fia Hallberg, Libero brand communi-
cation manager at SCA Personal Care
in Gothenburg.
A sneak preview of the product be-
gan in the end of August on YouTube.
The film, featuring a baby leading an ad-
vanced yoga class for adults, can also be

NEW
seen on TV in the Nordic countries.

U P ER -
S Y
ET C H
STR R O M
R F
DIAPE RO
LIBE

SCA in joint venture in the Middle East

SCA is forming a joint venture
company together with Jordan-
based industrial group Nuqul. The
new company, in which SCA will
own 50 percent, will manufacture
and sell feminine hygiene prod-
ucts in the Middle East and Egypt.
The operation will span 18 coun-
tries in the region. SCA’s purchase
price for its 50 percent stake
amounts to USD 18.5 million.
“This joint venture gives us
a unique platform for entering
Egypt and the main markets of
the Middle East with our success-
ful feminine hygiene products,”
says Gunnar Johansson, president
of SCA Personal Care. “These
markets have immense growth
potential, and we expect to grow
our sales in the region substan-
tially. We aim to complement
Nuqul’s product range, sold under
the Cinderella and Lady Fine
brands, with our own product
range. Our ambition is to eventu-
ally extend our joint venture to
other personal care categories in
the future.”
Nuqul is a leading industrial
group in the Middle East, with
operations that include tissue and
personal hygiene products. The
Group’s annual sales total about
USD 400 million. Nuqul is the
leading supplier of tissue in the
region and has a substantial and CORRECTION: In the last issue
fast-growing hygiene business we showed a picture of a paper
with strong positions in all Middle machine in Ortmann. It is situated
East markets. in Austria, not Germany.

[2 2007 ] SHAPE SCA *27

4**2006

SHAPE_EN_407_07_inside.indd 27 2007-11-23 14:11:25

 PRIZE FOR WELL-
FOLDED PACKAGING
SCA PACKAGING Nicollet won
the Formes de Luxe Award for its
Rémy Martin cognac gift box in Oc-
tober. Winners were selected based
on the criteria of innovation, design
and technique, and the prize cer-
emony was held during the annual
Luxe Pack trade show in Monaco.
The competing products were
presented in Formes de Luxe
1
magazine, a bilingual pub-
lication devoted to luxury
packaging and issued six
times a year. All read-
ers of the magazine voted
for their favorite products
through a form published in
the special summer edition of the
Formes de Luxe magazine.
sca Packaging Nicollet’s entry in
the Formes de Luxe competition came
first in the étui pliant (folded pack-
NEW MILL IN TULA
IN NOVEMBER 2006 SCA signed
an investment agreement with lo-
cal authorities in Russia to build a
tissue mill in the city of Sovetsk in
the Tula region, south of Moscow.
The design and project work were
completed during the past year,
and necessary permits were ob-
tained. In September SCA signed
a land lease and received permis-
sion to build the mill. The Tula mill
plans to start production in the
fourth quarter of 2008.
Russia is a fast-growing tissue
market, with 9 percent annual
growth by volume. SCA intro-
duced Zewa to the market in 1997,
and now the brand is a market
leader in Russia with a 40 per-
cent share. SCA’s manufacturing
28*SCA SHAPE [ 4*2007 ]
SHAPE_EN_407_07_inside.indd 28
aging) category. The festive gift box
commissioned by cognac producer
Rémy Martin has a decorative pull-
cord closure and an original three-
way opening that folds out to reveal
the cognac bottle inside in a spectac-
ular way. The exterior sparkles, thanks
to a holographic effect, and features
the black, red and gold of the
brand. The structural com-
plexity of this innovative
packaging required the use
of special cutting tools.
sca Packaging Nicollet
provides advanced packaging
solutions for a vast range of con-
sumer products across numerous
sectors, including food and beverag-
es, luxury goods and detergent. sca
Packaging Nicollet covers the Euro-
pean market and produces more than
a billion diverse packages a year.
facility in Svetogorsk, in the St.
Petersburg area, has no spare
capacity, and it currently imports
10,000 tons of tissue mother
reels each year to help meet total
annual demand of 55,000 tons.
The Tula region for the new
mill was chosen for its attractive
geographical position, well-
developed infrastructure and
interest and support from the
local authorities in planning and
completing the project.
The mill will have an annual
tissue capacity of 30,000 tons
Mats Berencreutz (second from the left)
at fi rst, and the initial stage is
president of SCA Tissue Europe, visited
expected to cost 70 million euros. Tula on October 12, where he toured the
The tissue produced in the mill site of the future tissue mill and met the
will be distributed and sold in project team and the SCA Russian and
Russia, Ukraine and Kazakhstan. Eastern management.
2007-11-23 14:12:07

ONE
COLOR
FOR
ALL
SCA TISSUE’S new Xpressnap®
Tabletop dispenser now comes
in 10 colors. John Riley, category
director of Tabletop, says the new
range of colors has made these
dispensers particularly appeal-
ing to schools and teams. “They
can find an Xpressnap Tabletop
in their colors. Whether orange
for the Syracuse Orangemen, blue
for the Duke Blue Devils or a team
color for a local high school, SCA
has a color that works for them.”
The AD-a-Glance™ feature of
the dispensers is an added bonus.
“With AD-a-Glance, the school
can print their school, team or
mascot on the insert and the dis-
penser is immediately customized
for them,” Riley says.
Xpressnap is a unique product
that promises customers a 25 per-
cent decrease in napkin use due
to its one-at-a-time dispensing
technology. Customers also touch
only the napkins they take, keep-
ing the process far more hygienic
than other systems.
SHAPE_EN_407_07_inside.indd 29
MILL IN
ORTVIKEN WILL GROW
SCA IS EXPANDING production
of mechanical pulp at Ortviken
paper mill. The sek 800 million
investment will allow paper produc-
tion at Ortviken to continue to in-
crease, while providing significant
quality improvements.
“Through our newly established
agreement with the Norwegian ener-
gy company Statkraft, we have now
secured a long-term supply of electric-
ity at a very competitive price that al-
lows for this investment,” says Ken-
neth Eriksson, president of sca Forest
Products. “Since our most recent pa-
per machine went into operation in
1995 we have increased production
by almost 50 percent through fine tun-
ing and investments to eliminate bot-
tlenecks. We have now reached a level
where pulp production is restricting
the mill’s continued development.”
The major items in the investment
are new refiners with high capacity. It
is in the refineries that the raw mate-
SCA INSIDE
rial, fresh spruce pulpwood, is ground
to pulp. But the investment also in-
volves separating pulp production
and customizing it for the different
paper grades.
“Our present pulp mill produces
pulp for all our four paper machines,”
Eriksson says. “This means we must
prepare the pulp in different ways, de-
pending on whether we are produc-
ing newsprint or coated publication
papers.”
With the new investment, the mill
will be able to prepare the pulp from
the outset for the product for which
it will be used. “This will lead to im-
proved product quality but also means
that we will save money and other re-
sources by doing it right from the start
instead of preparing the finished pulp
for each application,” Eriksson says.
Work on implementing this invest-
ment will start immediately. The new
equipment is scheduled to be in oper-
ation by spring 2009.
[ 4*2007 ] SHAPE SCA *29
2007-11-23 14:12:39
 CAMERA
On th e hunt for th
KING OF THE FOREST
e
TEXT MATS FALCK PHOTO ULF BERGLUND
IN THE FORESTS OF SWEDEN, the moose hunt
is an important annual event. In the north the season
starts on the first Monday of September, while in the
south it begins on the second Monday of October.
The season then runs until January or February. Of
some 250,000 hunters in Sweden, more than 90 per-
cent are men.
Moose herds expanded considerably in Sweden in
the last century. In the 1940s, fewer than 20,000 ani-
mals were shot, while in the 1980s the number peaked
at 180,000. Today some 100,000 of the estimated
300,000 to 400,000 moose in Sweden are shot annu-
ally. sca’s forests alone are thought to contain some
30*SCA SHAPE [ 4
3*2007 ]
SHAPE_EN_407_08_kamera.indd 30
PHOTO: GETTY IMAGES
30,000-40,000 moose. Low shooting rates along with
plenty of food due to large-scale clear-cuttings in 1960s
and 1970s were the reasons for the strong growth in
moose herds.
The king of the forest feeds on leaves, branches and
grass and can live to be 20 to 25 years old. Moose,
also known as European elk, are the largest animal
in Sweden’s forests, weighing up to 550 kg (1,200
pounds) and reaching a height of 2 meters (6.5 feet).
Moose are found in the northern parts of North
America, Asia and Europe. In Latin, the Swedish
moose is known as Alces alces, from the Greek word
alke, which means strength. ▲
2007-11-23 14:16:15
 Plans for the day’s first drive are drawn up. The hunting guide reviews which
stations are to be manned and where the drivers will walk. After picking
from a deck of cards, the hunters take turns choosing stations.

Early in the morning on the first day of the hunting season, hunters creep to their stations. In the dawn hours,
when the moose are on the move, the hunters wait for an animal to come within shooting distance.

[4
3*2007 ] SHAPE SCA *31

SHAPE_EN_407_08_kamera.indd 31 2007-11-23 14:16:57

 kamera
camera

After the first drive of the day, the

frozen hunters light a fire, grill hot
dogs and heat up their drinks.

After lunch, a moose cow

and calf are spotted in the area.
The hunters quickly regroup for a
new round and the drive starts up.

3*2007 ]
32*SCA SHAPE [ 4

SHAPE_EN_407_08_kamera.indd 32 2007-11-23 14:17:14

 Hunting involves a lot of waiting.
Using two-way radios, the hunters are
in contact with each other and with the
drivers. As soon as someone sees an
animal, everyone else on the
team is informed.

[4
3*2007 ] SHAPE SCA *33

SHAPE_EN_407_08_kamera.indd 33 2007-11-23 14:17:29

 SHAPING A VIEW

Jan Johansson
President and CEO, SCA

“WE HAVE A UNIQUE CUSTOMER

OFFERING THAT’S AN INTEGRAL
PART OF OUR LIVES — SIMPLE,
INDISPENSABLE PRODUCTS THAT

o
IMPROVE OUR EVERYDAY LIFE”

GREAT OPPORTUNITIES
ver the next decade, an estimated one bil-
lion new consumers will have a disposable
income of over usd 5,000, the dividing
line at which individuals generally begin to
buy products for their own well-being.
That’s good news for sca.
For me, having just taken over as ceo, it makes me al-
most giddy to think of the great opportunities that sca
has for growth in the world. We have a unique customer
offering that’s an integral part of our lives – simple, indis-
pensable products that improve our everyday life. We have
strong positions in markets throughout the world. I’m
thinking of our world-leading position in incontinence
protection with tena, our very strong regional positions
in children’s diapers like Libero, Drypers and Pequenin,
or sanitary protection like Libresse, Bodyform and Saba.
sca’s acquisition of Procter & Gamble’s tissue operations
will increase the rate of branded sales in Europe of facial
tissue, paper towels and toilet paper.
These are all important opportunities for growth for us.
Forest Products. sca has always considered its forest hold-
ings to be strategic in nature, something we want to have
control over. We have great advantages in today’s climate
of Russian export duties and a supply shortage. Timber
prices have increased dramatically, and we’re seeing that
more and more people in the world now share our posi-
tive view on forest holdings. This gives us a secure flow
of raw materials, is a renewable resource and helps absorb
carbon dioxide.
In recent years, sca has taken decisive steps in shift-
ing from being a commodity supplier to a company with
high-quality value-added products, a company based on
preferred partners. This is a shift I greatly respect and I
will promote further.
Keep an eye on our development! ▲

BECAUSE WE WILL GROW. In my fi rst meetings with

colleagues, the stock market and the media, I have been
clear in announcing that growth, both in sales and profit-
ability, is high on the agenda. Speed is another item. Over
the last few weeks, I’ve visited our business areas and spo-
ken with many fellow employees. I’ve experienced a very
solid sense of competence and professionalism in all four
business areas. With this as a starting point, I believe we
can raise the bar in terms of speed to the market.
The third item on my agenda is simplicity. To be quick,
we have to simplify our internal procedures and operat-
ing systems so that we ensure energy is spent on the right
PHOTO: SCA

thing: The customer! The consumer! Growing! Creating

profitability!
One of my most recent visits to our operations was to

34*SCA SHAPE [ 4*2007 ]

SHAPE_EN_407_09_kronika.indd 34 2007-11-23 14:17:59

 Eddie vs. the Germs
A revolution has begun. Custodians everywhere are fighting the clean fight
against the legions of bacteria that invade washrooms, contaminate patrons
and generally gross everyone out. Find out who’s winning.

“The only good germ is

a dead germ!”
Eddie “The Sterilizer” Mundy, Custodian

SCA Tissue is a leading provider of napkins,

towels, tissue, wipers and dispensing systems
for the Away From Home tissue market.

SHAPE_EN_407_09_kronika.indd 35 2007-11-22 14:05:09

 





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