EDITION THREE 2011
HEADLINES
Container freight volumes are on the rise |6
Approval for bonded warehouses in Sundsvall and Umeå
|9
Wind power and project shipping in focus | 14
scatransforest.com
UNCERTAIN TIMES = OPPORTUNITIES
Over the past six months, concern about a new global crisis
has risen sharply. In fact, looking at the stock markets around
the world, could the crisis already be here? After all, the value
of listed companies has plummeted. There is certainly cause
to take these concerns extremely seriously.
At the same time, however, the economy is doing just fine in a
number of segments and in several countries. We do ourselves
a disservice by being over-pessimistic! The fact that we
recently survived the financial turbulence of 2008 means that
we have recent experience, and are therefore better prepared
mentally to handle a new financial crisis.
As far as SCA Transforest is concerned, we have to continue
improving our efficiency and our services so that we can keep
our existing business on a competitive and profitable footing.
We naturally have a major advantage in the fact that SCA is
continuing to invest in its Swedish industries with a view to
driving up competitiveness. These industries make up a large
part of our customer base.
However, it is clear that we have to look beyond our existing
business and try to identify new opportunities – exploring
ideas that will gradually reposition us in more profitable
territory for the future.
Times of uncertainty and change are not just a threat. They
also throw up opportunities. Openness to new thinking and
new solutions is rarely greater than during difficult times.
Now is the moment to consider amending processes internally
within the company, or finding new partnerships, customers
or products that we have not had before.
This is entirely in line with the greater focus that SCA’s group
management is currently placing on upping the pace of innovation
and business development work within every unit of SCA.
And that is what we are committed to, as we develop the
Transforest of tomorrow!
Magnus Svensson, President
Publisher: Nils-Johan Haraldsson +46 60 19 35 30 Editorial staff: Mikael Högström +46 60 19 35 55, Henrik Fälldin
+46 60 19 36 20, Björn Lyngfelt +46 60 19 34 98 Lena Zettervall 060-19 35 27 Editor: Carl Johard +46 70 883 88 10.
Cover photo: Per-Anders Sjöqvist. Translation: LanguageWire. Production: Frosting Kommunikationsbyrå.
Printing: Prinfo Accidenstryckeriet. Inlay: SCA GraphoCote 90 gram. Cover: Cocoon gloss 200 gram.
Please submit any comments about New Ways to: SCA Transforest AB, Box 805,
SE-851 23 Sundsvall, Sweden. Tel. +46 60 19 35 00 info@scatransforest.com
New productivity record
at Interforest’s terminals
2010 saw efficiency improve at all of Interforest’s terminals by 13 percent on average – and the
efficiency work continues. ”That is 92,000 fewer working hours, which is a huge improvement”,
Text: Carl Johard. Photo: Per-Anders Sjöqvist
says Magnus Svensson, CEO of SCA Transforest.
The comprehensive efficiency drive
started in 2009, as a consequence of the
sizeable drop in volumes caused by the
previous financial crisis.
“We lost 12 percent of our volumes
and had to draw up a plan to tackle that
problem. We took a range of measures
at the time and have consistently stuck
to the plan ever since. There is great
potential for further improvements, and
we’re working on that now,” comments
Magnus Svensson.
New IT system
One key efficiency measure was the
installation of STEAM, an umbrella term
for a range of systems at the terminals,
including the Warehouse Management
System (WMS).
“We’ve got it to work really well and
certain changes to the way of working
have already occurred, such as improved
warehouse planning. Instead of planning
for goods handling during one shift,
the planning is ongoing, whatever the
shift. This means that as soon as a
space becomes available, it can be filled
immediately instead of four to eight hours
later. This can considerably cut down on
the amount of driving and time,” says
Magnus Svensson. “We can also store
much more than before in our existing
warehouses.”
The next step will be to introduce
task management.
“We always get slack times at various
stages of the transport process. As it
stands at the moment, if there are five
minutes to spare when a forklift driver
is unloading or loading lorries, he has
to wait until the next lorry. The new
The ambitious work at Interforest´s terminals
continues with tough new efficiency goals.
task management system improves the
overview of everything that needs doing.
This means that the forklift driver can
carry out other tasks nearby during slack
periods,” explains Magnus Svensson.
Tough efficiency goal
SCA Transforest’s goal for 2012 is to
reach 25 tonnes per man hour for its
blue-collar workers, which corresponds
to around 21 tonnes if the white-collar
workers are also included. For 2015, the
goal is 30 tonnes per man hour for bluecollar workers, corresponding to around
26 tonnes including white-collar workers.
Umeå, the terminal that has gone
furthest in its efficiency work, is already
nudging the 2012 goal of 25 tonnes per
man hour. Interforest Terminal Sundsvall
and Interforest Terminal London are not
far behind.
“Our aim is to achieve the same efficiency
level as land-based distribution centres.
Although they may have it easier with a
more even workload of waiting lorries
instead of arriving ships, there is still no
real reason why we can’t attain the same
efficiencies as our land-based colleagues.
Our major challenge is to smooth out
the peaks and troughs of work between
ships,” says Magnus Svensson.
“In these times, it is vital for us to
increase our efficiency, our capacity and
our profits. Over recent years, wage and
fuel costs have risen sharply, while at the
same time customers have been loath
to accept any large price rises in a more
strained market. Our ambition is to grow
and attract more volumes in the future,
based on a platform of high efficiency.”
Imperial Shipping takes over
operation of SCA’s three ships
SCA Transforest has signed a new management agreement with the Swedish-British company
Imperial Shipping, which will take over the operation and maintenance of its three ships MV Östrand,
Text: Carl Johard. Photo: Henrik Fälldin
MV Ortviken and MV Obbola.
“For three years from 1 December, we
will be responsible for the crewing and
the technical operation of the ships, which
will involve purchasing spare parts and
materials and maintaining compliance
with international safety systems,”
explains Lars-Arne Inberg, CEO of
Imperial Ship Management AB.
“The SCA ships are extremely
interesting. We see this as an exciting
challenge that suits our company
perfectly, giving us greater stability for
our newly launched business, while
also expanding our expertise and our
collaboration.”
NEW WAYS 4
Specialists in the forest industry
Imperial Shipping – whose head office is
in London – owns and operates 13 RoRo
and general cargo ships of its own, mainly
ranging in size from 6,000–35,000 DWT.
Since 1999, Imperial Shipping has also
owned the historic Swedish Orient Line
Shipping Company, which is based in
Gothenburg.
Together with the Swedish Orient
Line, Imperial Shipping’s vessels ship
cargoes from Northern Europe to
Southern Europe and North Africa, with
a broad spectrum of project and contract
cargoes shipped around the world.
“We have a number of vessels that load
up and transport forest industry products
from the Baltic Sea to the Western
Mediterranean. We also have two of
our ships chartered out to Stora Enso,
running between the Baltic Sea and
Europe,” says Lars-Arne Inberg.
Imperial Ship Management
A few years ago, Imperial Shipping set up
Imperial Ship Management AB, which is
also based in Gothenburg and is responsible
for operating and maintaining the shipping
line’s own 13 ships. The fleet is made up of
six general cargo ships and seven RoRo vessels.
Lars-Arne Inberg, CEO of Imperial Ship Management.
“We began life as an internal ship
management company for our own ships,
but in spring 2011, the board decided to
start offering our services externally.
We consider ourselves experts in
operating and maintaining RoRo in
particular. On 1 September, we signed a
management agreement with Norwegian
Car Carriers, owners of MV Helena,
which is chartered to Holmen. And now
we have also signed a similar management
agreement with SCA Transforest to cover
their three ships. This complements the
other contracts we have very well, and
we hope to be able to develop further
business with SCA in the future,”
comments Lars-Arne Inberg.
OSM leaders in crewing
Imperial Ship Management has chosen
to subcontract all crewing of its own
and contracted ships to the Norwegian
company OSM Crew Management, an
independent supplier of marine services.
OSM offers ship management, crew
management and consultancy services,
as well as navigation and engineering
solutions and financial planning.
Founded in 1989 in Arendal, Norway,
the OSM Group is now responsible
for crewing a fleet of 430 ships and
offshore platforms around the world.
The company, which employs over 7,000
people from 30 different countries, has 21
offices globally.
“As part of our management
agreement, all the crew on SCA’s three
ships have the option of leaving the
previous owners Transatlantic on 1
December, to take up employment with
OSM Transforest, a company jointly
owned by SCA and OSM,” concludes
Lars-Arne Inberg.
5 NEW WAYS
“Container freight volumes
set to continue growing”
Container freight volumes are on the rise globally, not least to and from Interforest’s terminals. ”We’re
seeing growing container volumes right now, mainly due to a jump in ocean volumes from SCA and
Text: Carl Johard. Photo: Henrik Fälldin
external customers,” says Magnus Svensson, CEO of SCA Transforest.
“To meet this demand, we’ve already
taken on a slightly larger container
ship, on a time charter, for the UmeåSundsvall-Rotterdam-Stockholm route.
That ship departs every ten days, but
we have also taken on another 13 extra
container ships since the beginning of the
year,” explains Magnus Svensson.
“The unrest in North Africa caused
a drop in shipments there for a while.
Instead container shipments to Asia
increased. In Egypt the immediate crisis
is now over and trade is up and running
again. Since the earthquake, there has
also been an increase in exports to
Japan.”
Continued upturn
Magnus Svensson predicts a sustained
rise in volumes for container freight.
“When economic activity tails off
and customers in Europe are unable to
purchase the industry’s output, container
exports usually increase. The growth
in Asia makes sales possible there, as it
becomes more problematic to secure
sales on the domestic market.
“We therefore believe that ocean freight
from Europe will remain relatively strong
due to the fact that markets such as Italy,
Greece, Spain, Portugal, Ireland and to
some extent the UK are a little sluggish.
We have also seen smaller volumes to the
US in recent years.”
New markets
New markets for SCA Transforest’s
container freight are also on the brink of
opening up.
“The container systems have become
large and efficient, so we have also
started containerising flows that are
not ocean freight. We’ve started taking
containers to Ireland, for example. We
may switch to container freight to other
such markets that are not all that far
away, such as the Mediterranean and
North Africa,” says Magnus Svensson.
A major advantage of containers is that
you don’t need to fill a whole ship.
“With containers, you only need to ship
25 tonnes instead of gathering a few
thousand tonnes to get a reasonable
freight level. It can be a good way
of breaking into a new market.”
Another change is that SCA
Transforest has seen strong growth in
intermodal shipments by rail across the
Continent, chiefly from Rotterdam to
Eastern Europe. For certain destinations,
it has proven highly cost-effective to
transport containers by train and then
transfer them to trailers for the final
stretch by road to the customer.
“This is an exciting development and
it shows that we are on the right track
in gradually adapting our terminals to
create an efficient interface with the
intermodal transport systems,” concludes
Magnus Svensson.
Introducing Autostore
for more efficient
container management
In a drive to manage container flows within a single system, SCA Transforest is currently installing
Autostore, a brand new British container management system, at all its terminals. “The whole idea of
the project is to make container management easier, dispensing with the manual registration process that we have today and reducing the risk of registration errors and faulty deliveries,” explains
Text: Carl Johard. Photo: Henrik Fälldin
Peter Eriksson, Logistics and Environmental Manager at SCA Transforest.
Autostore is being supplied by British
firm Central Systems & Automation,
which is based in Leicester.
“This is a standard system that is
already in operation in a few locations
around Europe, but we have made a
few minor modifications to suit our
business,” says Peter Eriksson.
All containers have their own 11-digit
container number.
“By the time a container arrives
at the terminal, we already have the
information on it, so when it comes in
we confirm that it has arrived and that it
really is the right container.”
Any movement of the containers
within the terminal is then carried out
according to predetermined rules.
“When a container is scheduled to be
stuffed (loaded), the person driving the
truck – called the ‘reach stacker’ – is told
by the system to fetch an empty container
and then drive it to the stuffing site.
Once the stuffing is completed, the driver
receives a new message to take it away for
storage,” relates Peter Eriksson. The same
system is also used to create loading plans
for ships.
Major benefits
One major benefit of Autostore is that
SCA Transforest can use the same system
at all its terminals.
“The shipping department will have a
much better overview of which containers
are where and which ones have been in
storage for a long time. Since we have
to pay rent for containers after a certain
time, it’s important to make sure that we
load up the right containers. The system
also makes the administrative processes
much easier. There is every indication
that container volumes will continue to
increase in the future and now we will
be able to handle this without needing to
employ more staff.”
There are also major benefits for the
customer.
“Above all, the containers will be
handled much more safely and reliably.
Being able to transfer all information
electronically is both simpler and more
secure.”
Start in the autumn
Courses on Autostore have already been
held for six superusers from the terminals
in Sundsvall, Umeå and Rotterdam and
from the shipping department. These in
turn will train the staff at their respective
units.
The plan is to start rolling the system
out in autumn 2011.
“The shipping department and the
terminal in Sundsvall will bring the
system online at the end of October.
We aim to then have the system up and
running in Umeå in February next year
and in Rotterdam by the second half of
2012,” concludes Peter Eriksson.
Did you know...
…Sweden is the world’s second biggest exporter of paper, pulp and sawn timber combined. Its pulp and paper industry is the third largest in Europe,
after Germany and Finland. Sweden plays a crucial role in Europe’s supply of fibre, since the majority of its production is based on virgin fibre. Swedish
pulp exports are also critical for the supply of raw material to paper manufacturers in countries such as Germany, Italy and France, while as much as a
fifth of sawn timber consumed in EU countries is produced in Sweden.
NEW WAYS 6
7 NEW WAYS
Did you know...
SCA Transforest GAINS approval
for bonded warehouses
in Sundsvall and Umeå
Container Feeder
from Sweden to
Rotterdam continues
SCA Transforest is launching a new service, storing uncustomed import goods at bonded
warehouses in Sundsvall and Umeå. These bonded warehouses allow the customer to hold off on
customs clearance of imported goods until those goods are released for delivery from the terminal.
Text: Carl Johard. Photo: Per-Anders Sjöqvist
Payment of duties and VAT is also delayed until the time of delivery.
Increased container volumes have led SCA Transforest to
extend its agreement with Flintercape for a further six months
Text: Carl Johard.
from October 2011 to March 2012.
When containerised freight is shipped
northbound, on the Container Express
route for example, many of the goods
have not yet been cleared through
customs. In official terms, these
uncustomed goods are referred to as
having ‘T1 status’ and before they can be
delivered to the end customer in Sweden
transit arrangements have to be made
and the goods given customs clearance.
SCA Transforest has previously been
unable to offer this service, but all that
is set to change from October, in close
partnership with Logent Customs AB.
The Swedish customs specialist has
expanded its bonded warehouse licence
from Swedish Customs to include the two
terminals in Sundsvall and Umeå.
Logent becomes agent
In administrative terms, SCA Transforest
will give Logent Customs AB advance
notice of when the transited goods are on
their way into the terminal by emailing
NEW WAYS 8
a copy of the transit accompanying
document. Logent Customs AB will keep
logs of incoming and outgoing goods.
“When shipments with T1 status
arrive, we tell Logent, which gives
the goods an IG number and registers
them in the goods logs,” explains Peter
Eriksson, Logistics and Environmental
Manager at SCA Transforest.
When the customer wishes to remove
goods from the bonded warehouse,
Logent Customs AB must again be
informed.
“As our customs agent, Logent has to
obtain customs clearance for the goods
before we take them from the terminal
for delivery to the customer,” continues
Peter Eriksson, who points out that these
procedures only apply to the container
volumes that pass through Sundsvall and
Umeå.
“As far as all other customs clearance
is concerned, we will continue to take
care of that ourselves.”
Customer benefit
The benefit of having a bonded
warehouse in Sundsvall and Umeå is
that goods that come by Container
Express from Rotterdam do not need to
be cleared through customs until they
are collected from the warehouse by the
customer.
“We now have the facility to receive
uncustomed container goods. This means
that we can store uncustomed goods for
our customers, without them needing
to pay import duties and VAT during
the period of storage. Once the goods
arrive at their destination port, transit
arrangements have to be made and this is
something we were unable to do before.
Now we can with our new bonded
warehouse licence.”
SCA Transforest plans to have the
new system of bonded warehouses
implemented in Sundsvall and Umeå
during October.
“The partnership has worked well in
its first 18 months. We are currently
developing our container traffic and have
now agreed a new six month period with
the Flinter shipping line,” comments
Lars Nolander, head of SCA Transforest
Shipping Department.
MV Flintercape, which was built in
China in 2008, is owned by the Dutch
shipping line Flinter. Since the end of
February 2010, the new MV Flintercape
has been servicing the Sundsvall-UmeåRotterdam route.
The cargo on board is coated paper
for Japan, solid-wood products from
nearly all the Norrland sawmills.
“On the north bound leg we are able
to offer many different customers freight
transport from Rotterdam to Stockholm,
Umeå and Sundsvall. We also take back
numerous empty containers to be loaded
up in Umeå and Sundsvall,” explains
Lars Nolander.
“With the Container Feeder from
Umeå and Sundsvall, we have taken
a considerable step up in vessel size,
corresponding to the size that sails to
other larger container ports around the
Baltic Sea,” says Lars Nolander.
“It is important to increase in size
so that our customers in Norrland, who
are a long way from their customers in
Asia and South America, can be offered a
reasonable price for their shipments. This
can only happen by choosing a largersized vessel combined with containerised
loads. It is important that together, we
and our customers reach a critical volume
in order to support a Container Feeder.
Nobody can operate this volume of
shipments from Sundsvall on their own.”
…in shipping, a container is usually
a large, reusable box suitable for
intermodal transport. Containers
appeared in England in the mid-18th
century in the form of large wooden
crates for transporting coal. Then came
specialist solutions for different transport
needs.
Loading the containers requires large
cranes, which first arrived on the scene
in the 20th century. In the mid-20th
century, their use rose sharply with the
introduction of various standards. The
container system revolutionised goods
handling globally, as infrastructure was
created with suitable modes of transport
and handling equipment, and the
workforce shifted from stevedoring at the
ports to working inland at the customer
warehouses. This was one of the drivers
behind globalisation.
The purpose of the container was to
make loading and unloading easier and
get the carriers turned around as quickly
as possible, to protect the goods from
the weather, theft and damage in transit,
to allow the use of different modes of
transport along the logistics chain, such
as lorries, trains and ships, and to create
a temporary storage space, for example
while awaiting shipment.
AEO APPROVAL FOR .
SUNDSVALL AND UMEAÅ
SCA Transforest’s Swedish units in
Sundsvall and Umeå have now been
awarded AEO accreditation by Swedish
Customs. This accreditation is valid
from 9 September 2011 and covers
both security and customs clearance.
Interforest Terminal Rotterdam has long
been accredited to the same standard.
AEO stands for ‘Authorised
Economic Operator’ and is a quality
accreditation sanctioned by the European
Union and other countries, including
Norway, Switzerland and Japan.
As an AEO, SCA Transforest gains
smoother customs administration,
simpler customs clearance and fewer
security inspections of transported
goods.
9 NEW WAYS
SCA invests
in the future of
Ortviken Paper Mill
SCA is investing SEK 350 million in Ortviken Paper
Mill. The investment will increase the mill’s capacity
to produce improved grades of newsprint and also
strengthen SCA’s profile as an industry leader on
environmental issues. Text: Carl Johard. Photo: Per-Anders Sjöqvist
More efficient
freight between Ortviken and
the Sundsvall terminal
Text: Carl Johard. Photo: Per-Anders Sjöqvist
Ortviken’s PM5 paper machine is being
reworked to produce higher quality
paper. The capacity to manufacture highbright pulp is also being increased, and
additional investments are being made in
Ortviken’s wastewater treatment plant.
“We are making these investments to
expand the flexibility of our product mix,
making us better able to meet customers’
requirements for products with higher
levels of brightness,” says Kristina
Enander, Mill Manager at SCA Ortviken.
The production of newsprint is set
to continue.
“We will still be able to produce
newsprint on PM5 for the markets
with the best returns. Above all, the
investment will make us more flexible,”
says Kristina.
Several sub-projects
The investment comprises several subprojects:
- PM5 will have its wire and press
section reworked to increase dewatering
capacity.
- Conversion of PM5 to neutral pH by
installing new presses in the pulp factory.
- New wash presses to increase
bleaching capacity.
- Extension of external water
NEW WAYS 10
K r i s t in a E n a
treatment by installing microflotation
and expanding biological treatment. Improved quality
“The focus of this investment is on
further quality improvements. Now
we will also be able to produce better
newsprint grades with higher grammages
and brightness on PM5,” explains
Kristina Enander.
“These investments also enable us to
enhance utilisation of our raw material.
Spruce pulpwood from the north of
Sweden is the best raw material in the
world for producing publication paper
based on mechanical pulp. We can also
draw greater benefit from the investments
we have made in new technology for
mechanical pulp production.”
Strengthening SCA’s
environmental profile
The investment also strengthens
SCA’s profile as an industry leader on
environmental issues. SCA
was among the first to offer Totally
Chlorine Free products and was one of
the world’s first paper manufacturers to
nder, M
ill M a
nage
r at
SCA
Or t
v ik
en.
offer substantial volumes of FSC certified
publication paper. In recent years, the
use of renewable biomass for energy
production has contributed to products
from SCA Ortviken having a uniquely
low carbon footprint.
Good news for SCA Transforest
This is also good news for SCA
Transforest, which provides SCA
Ortviken with freight services.
“This means that SCA Ortviken will
be able to make extra products and thus
keep itself at full production, which is
great for us. It also shows a commitment
on the part of the SCA management not
only to invest in the environment, but
in the existing factory with a view to
maintaining production and increasing
competitiveness long into the future,”
says Magnus Svensson, CEO of SCA
Transforest.
Following major investments in Ortviken, SCA has also chosen to invest in a new automated loading
system for the paper mill. At the same time, Östman Transport is investing in customised trailers
and trucks for internal freight between Ortviken and Interforest Terminal Sundsvall.
Having recently invested in a new
packaging line, SCA Ortviken is moving
forward with an automated loading
project which involves partial conversion
and the introduction of brand new
equipment. The project started in March
this year, and the system is set to be
operational by April next year.
Supplying the complete system for
automated loading, which includes
mechanical equipment, control systems,
electrical equipment and their installation,
is Gothenburg company Trancel, a
specialist in customised fully automated
systems for pulp and paper handling.
The conversion will involve changing
the control mechanisms in LWC1 for
improved load consolidation and load
composition as part of the ramp control
system instead of in RMS.
“The goods will be directed to a
number of loading ramps, and then the
whole load will be pushed into the lorry
in one go,” says Urban Häggkvist, head
of Interforest Terminal Sundsvall.
The system also includes equipment that
allows the driver and the terminal to
see the status of the ramps and loading
process. The system requires a whole
different type of ongoing pre-sorting,
which will improve the efficiency of the
work considerably.
Loading will run more smoothly after
the conversion and installation work,
making optimum use of the lorries.
New lorries for internal freight
Alongside this, Harry Östman
Transport, which took over internal
freight between Östrand Pulp Mill,
Ortviken Paper Mill and Interforest
Terminal Sundsvall in June this year, is
investing in new lorries and five specially
adapted trailers.
These new trailers, which are being
built by Dutch firm Renders, will be
higher and tailored specifically to this
kind of internal freight. They will also
have five axles, with a fixed mid-axle
and steering on the other four.
“The five lorries have been ordered for
delivery this winter. They will be ready
for action in plenty of time before the test
runs, which are due to start in March
2012. Bringing these on stream will give
a further boost to the efficiency of our
loading and internal freight transport,”
says Urban Häggkvist.
Earlier this year, SCA Transforest
signed a five-year agreement with
Östman Transport AB regarding internal
freight between Östrand Pulp Mill,
Ortviken Paper Mill and Interforest
Terminal Sundsvall. The investment in
new customised freight lorries was part
of this agreement, which runs until 21
December 2016.
Under the agreement, Östman
Transport takes responsibility for
transporting the entire annual volumes
of pulp from Östrand (580,000 tonnes)
and newsprint and coated paper products
from Ortviken (900,000 tonnes) to
Interforest Terminal Sundsvall.
11 NEW WAYS
“We have to improve
the reliability of our
transport systems!”
A commission of inquiry has been set up to examine the consequences of the EU and the IMO’s
Sulphur Directive, states the Swedish Transport Administration’s Director General Gunnar Malm in
this interview. He also reveals that he hopes next year to be able to launch two green rail corridors
from Stockholm via Naples to Palermo and from Oslo via Gothenburg to Rotterdam.
Text: Carl Johard. Photo: Trafikverket
How will the EU and IMO’s decision on limiting
sulphur emissions in the Baltic Sea and the
North Sea impact directly on the Swedish
Transport Administration? What do you think
the consequences will be for the shipping
industry and the Swedish transport industry
as a whole?
“I can only say that the decision exists.
The indications I have received from the
EU suggest that this is a firm decision
and an issue that does not leave much
room for manoeuvre. I am fully aware
of and understand the forest industry’s
views on the problems this creates and
the consequences it brings – not least in
relation to the skewed competition that
arises.
“As recently as today, we met with
the Swedish Maritime Administration to
Name: Gunnar Malm
Lives in: Borlänge, Sweden
Age: 61
Current post: Director General of the Swedish
Transport Administration since
1 April 2010
Background: Commissioner for inquiry into the formation of the Swedish Transport Administration and into high speed rail links, CEO of Arlandabanan Infrastructure AB, CEO of Translink AB,
President and CEO of ASG AB, CEO of Swedcarrier AB, Deputy Director General and CFO of SJ and a large number of board appointments in transport and logistics
Family: Wife and two children
NEW WAYS 12
discuss this very issue. Together, we have
decided to jointly conduct a thorough
impact analysis – not simply to identify
the increased costs for shipping, but also
to get a handle on what consequences the
current ignorance and knock-on effects
may have. There is no time to lose, and
this investigation must not take too long.
It is important that we move forward
quickly, considering the leadtime required
for any decision on new tonnage and new
technical solutions.”
What is your view of the infrastructure developments around Sundsvall with the triangular
track for Bergsåker and Maland, and the
upgrading of the Tunadal line. Can these projects be brought forward, bearing in mind that
Tunadal Sawmill and Ortviken are planning
major increases in production?
“They are part of the national plan, but
they are not at the top of the list. Over
SEK 160 million has been set aside for
this in the plan for the period 20192021. There is also money set aside for
the Port of Sundsvall and the Tunadal
track for the same period. But we need
further funds on the operational and
maintenance side.
“Our task at the Swedish Transport
Administration is to review capacity and
identify what problems and shortcomings
there are in the system. In this context,
we have said that we have to be prepared
to bring forward the triangular track for
Bergsåker and Maland, and the Tunadal
track, and this will be set out in the Swedish
Transport Administration’s new plan.
This means that we will at least be able to
start the planning earlier than 2019-21 –
although not before 2014. However, this
requires political decisions first.”
There have been major problems in getting the
new Bothnia line up and running. Have these
problems now been resolved?
“We had teething problems with the
Bothnia line’s signalling system, but these
have been ironed out. The next major
development is to link the Bothnia line
with the Ådal line to the south. We have
also been forced to delay this, because
the supplier has had major problems
connecting up the signalling system. The
project has been technically complex,
with numerous level crossings along the
Ådal line. The signalling system will now
be connected by December 2011. Then
we need to test the system and carry out
safety checks before trains can begin
running. When the Ådal line opens,
we will have a modern rail link from
Sundsvall to Umeå.”
Logistically, how can we safeguard the Swedish export industry’s competitiveness and
reliability as suppliers?
“The big challenge we face is
strengthening the routes already in
place. We have to establish smoothly
functioning nodes, where shipping can
connect up with reliable rail systems and
vice versa. We have to get all the modes
of transport to work better together, and
this is where the intermodal terminals and
transport systems have a key role to play.
“We are currently examining which
areas need to be given a boost to get to
this position, and we aim to complete this
work by spring 2012. We also possess
various instruments that will help us to
achieve the objectives we set.
“In parallel with this investigation, we are
improving operation and maintenance,
not least on the railways. The robustness
of the rail network leaves something to
be desired and we are working intensely
on that issue. Then there are always new
needs arising – not least from the growing
mining industry.”
What are the Swedish Transport
Administration’s most important objectives and
priorities with regard to the transport needs
of Swedish industry over the next year and
beyond?
“The major challenge is the robustness
and reliability of the transport systems.
Industry must be able to trust that the
goods they send will arrive on schedule.
We have to get to grips with the capacity
problems, remove bottlenecks in the
transport systems, establish functional
intermodal solutions and support
international freight transport. It is
also important that we get in early in
deepening our dialogue with industry.
“I do think that the needs of industry
have moved up the agenda in recent years
and there is considerable understanding
of their wishes and problems at this
time. We will never be able to satisfy all
requirements, but we are trying to do as
much as we can.”
In what way are you supporting international
freight transport?
“Mainly on the railways, where we are
working to bring about a number of green
corridors down to Europe. The focus in
Sweden is primarily on two corridors –
corridor C from Stockholm via Naples to
Palermo, and the corridor that goes from
Oslo via Gothenburg down to Rotterdam.
“We have recently set up a task force
to drive this work forward. The aim is
for at least one of these two corridors
to be up and running during 2012. The
intention is for there to be capacity on
this rail route for trans-European freight
traffic, with a specially adapted system
of rules and regulations in place. There
will then be sufficient slots on the line
and customers will not need to worry
about the border crossings. This is a
significant project and an important issue
for Sweden, since we have such a sizeable
international forest industry.”
What are green corridors?
“They come out of a European
Commission initiative to develop a
greener transport policy that meets the
challenge of climate change and at the
same time boosts the competitiveness of
European industry.
“The features of the green transport
corridor include sustainable and
well integrated logistics solutions,
harmonised regulations across national
borders, a concentration of national
and international freight on relatively
long transport routes and efficient,
strategically located intermodal
terminals.
“In Sweden, the government’s
Logistics Forum has taken the initiative
to develop these, and we at the Swedish
Transport Administration have been
asked to join forces with the Swedish
Maritime Administration and Vinnova to
form a secretariat to develop the concept
of green corridors.
“There is already one corridor up and
running – the rail line from Amsterdam
to Genoa, which passes through the
Netherlands, Germany, Switzerland and
into Italy.”
What is happening with the upgrading of the
rail line between Sundsvall and Trondheim?
“The Meråker line between Sundsvall
and Trondheim needs extensive
upgrading, not least on the Norwegian
side. However, there are no plans at the
moment and nothing is going to happen
before 2015. On the Ore line to Narvik,
however, we already have full utilisation
of capacity. Here investment will focus on
items such as sidings.”
13 NEW WAYS
Construction work starts
on first 63 wind turbines
Statkraft SCA Vind AB has now taken its investment decision regarding the first phases of the
Mörttjärnsberget and Stamåsen wind farms in Jämtland and Västernorrland counties in Central
Sweden. To start with, this will involve erecting 37 wind turbines at the first farm and 26 at the second.
Text: Carl Johard. Photo: SCA
Statkraft SCA Vind AB, in which
Statkraft has a 60 percent stake and SCA
a 40 percent stake, has initially decided to
erect 37 wind turbines with a total output
of 85 MW at Mörttjärnberget wind farm
and 26 turbines with a total output of 60
MW at Stamåsen wind farm.
Around SEK 2.5 billion will be invested
in these first two phases of development.
Work started on site at Mörttjärnsberget
in August and Stamåsen in September,
with Stamåsen set to be operational by
autumn 2012 and Mörttjärnsberget by the
third quarter of 2013.
“We’ve now entered an intensive
phase, with two large farms under
construction, so it feels like we are finally
on the road to realising the project that
we’ve been working on since 2007, which
will contribute to a better climate,” says
Jakob Norström, CEO of Statkraft SCA
Vind AB.
“Wind power makes an important
environmentally friendly contribution
in the transition to a future low carbon
society. We are very happy to start the
construction of another wind farm, and
to strengthen growth in a strategic focus
area,” adds Statkraft CEO Christian
Rynning-Tønnesen.
Ongoing procurement
Statkraft SCA Vind AB has already
started the procurement process for the
new wind turbines. A deal has been struck
with Siemens Windpower for the purchase
and delivery of 63 turbines in total. A
framework agreement with Siemens also
provides a future option on 253 turbines
for the planned wind farms.
SIC Sverige has been contracted to build
NEW WAYS 14
Milan Kolar, head of wind power at SCA Energy
the access roads and the foundations for
the turbines.
“We are looking to make the concrete
using aggregate from the site, but the
two wind farms will still require many
lorry loads of cement and reinforcement
bars. We also hope to be able to pump
water up from boreholes on the farms,”
explains Åke Westberg, Manager of SCA
Energy. The tender to build the roads
within the farms was won by Frölander
Entreprenad in Härnösand.
“Work has already started on the
roads, with the foundation work due to
start in the autumn and pick up pace
during spring 2012,” says Åke Westberg.
The procurement of other necessities
such as transformers, power and freight
services is ongoing. When it comes to the
issue of freight transport by sea and land,
discussions are underway with suppliers
that include SCA Transforest.
Åke Westberg, Manager of SCA Energy
Many bulky shipments
The new wind turbines that Siemens
will be delivering are made in Jutland,
Denmark, and will be taken as project
shipments by sea to a port in the Sundsvall
region before being transferred by lorry to
the two wind farms.
The shipments will be extremely complex,
since the rotor blades are 55 m long, giving
the rotor itself a diameter of 113 metres.
“We are looking at 70-metre-long
shipments by road,” says Milan Kolar,
head of wind power at SCA Energy.
The towers are disassembled and
transported in containers.
“We estimate 7-8 shipments per
turbine. In total that amounts to almost
500 shipments in 2012 and 2013 just for
the 63 wind turbines agreed on so far,”
states Milan.
15 NEW WAYS
SCA Energy planning 990 wind
Turbines – 200 of them on its own
SCA Energy is fully embracing wind power. Together with Statkraft, SCA has applied to erect 460
wind turbines in Västernorrland and Jämtland, with another 30 in the pipeline. In parallel with this,
planning has started on erecting a further 300 turbines in partnership with Norway’s Fred Olsen
and 200 turbines entirely on its own. This represents a total investment of over SEK 30 billion.
Text: Carl Johard. Photo: SCA
Together with Statkraft, SCA has applied
for permission to erect a total of 460
wind turbines and will soon submit
an application for another 30, creating
the capacity to generate 2.6 TWh in all
at seven wind farms in the counties of
Västernorrland and Jämtland in Central
Sweden. Three of the farms have gone
to appeal at the Environmental Court of
Appeal and a final decision on these is
expected in November 2011. Of the six
applications, three have been given the
go-ahead: Mörttjärnberget, Stamåsen and
Raftsjöhöjden.
Construction started in August
As the appeal process continues, Statkraft
SCA Vind AB has decided to start erecting
63 wind turbines on two of the farms –
Mörttjärnsberget and Stamåsen. Work
started at Mörttjärnberget in August this
year and Stamåsen in September. The plan
is for the two wind farms to be up and
running by autumn 2012 and the third
quarter of 2013 respectively.
A decision to start building the
project’s other 427 planned wind turbines
may be taken during the first quarter
of next year, following the decision of
the Environmental Court of Appeal in
November.
“In terms of investment and capacity,
we can build and install 100-150 turbines
per year,” states Åke Westberg, Manager
of SCA Energy.
Partnership with Fred Olsen
Alongside its involvement in Statkraft
SCA Vind AB, SCA has also entered into
NEW WAYS 16
partnership with Fred Olsen, with SCA
owning a 40 percent stake in the planned
wind farms. The plan with Fred Olsen is
for 300 wind turbines in Västernorrland
and measurement masts have been set up
in the chosen locations.
Independent planning
SCA has also decided to independently
plan 200 wind turbines on land between
Viksjö and Graninge, north of Härnösand.
Here too work has already started, with
measurement masts in place.
“We’re currently carrying out
feasibility studies and drawing up data
for an application to the Environmental
Court, a so-called Environmental Impact
Assessment or EIA. We’re taking wind
measurements, documenting the bird of
prey population and conducting a dialogue
with the Sami people and other local
residents,” explains Milan Kolar, head of
wind power at SCA Energy.
SCA has not yet decided whether the
company will also erect the wind turbines
itself.
“At the moment, we are just planning
out the area, so we can secure an
environmental permit. These days, it
makes sound financial sense to do the
planning yourself. Once the farm has its
permit, we have various options – we can
either sell off all or part of the project or
we can choose to build it ourselves,” says
Milan Kolar.
As far as the project with Fred Olsen
and the independent project are concerned,
construction will not start before 2014,
with turbines then operational by 2015.
Partnership with SCA Skog
“Within the wind farms, only around 2-5
percent of SCA Skog’s forest land will
be used for wind power production and
roads. The rest of the land in these areas
can be used for forestry as normal. It’s
fantastic that we are able to combine two
industries – energy production and forestry
– in this way, with SCA Skog receiving
revenue as the landowner and access to
good transport routes. This also raises the
value of our forest land,” comments Åke
Westberg.
In addition, the wind farms are
estimated to generate employment to the
tune of 3–4 full-time jobs per 10 wind
farms.
Major step for wind power
SCA’s well advanced plans in this field
mark a major step forward for wind power
in Sweden. There are currently 2,000
wind turbines in Sweden, which together
generate 5 TWh.
SCA’s total of 990 wind turbines,
planned in partnership with Statkraft
and Fred Olsen or independently, would
almost double the country’s wind power
production.
“Just within SCA Statkraft Vind AB,
we estimate production of up to 2.6 TWh,
which amounts to around two percent of
Sweden’s energy consumption at this time.
With all our plans, we can get that up to
five percent or more. Above all, we would
then be able to match SCA Ortviken’s
annual demand for 2 TWh of energy,”
concludes Åke Westberg.
Siemens charging
up for many long
project shipments
Siemens Windpower has been chosen to provide 37 wind turbines for
Statkraft SCA Vind AB’s wind farm in Mörttjärnsberget and 26 turbines for
the Stamåsen wind farm. This will require a large number of project shipments
by sea and 520 superlorry shipments through central Sweden starting in
Text: Carl Johard. Photo: Siemens
May–June 2012.
“We have signed a framework
agreement with Statkraft SCA Vind
covering 253 wind turbines. Of
these, we have now received orders
for 63 turbines, which is a huge and
important contract for us. This is
the biggest framework agreement in
wind power ever signed in Sweden,”
states Hans Carlsson, head of
Siemens Windpower in Sweden.
company Bonus Vindkraft and
its manufacturing base in Brande,
outside Billund. Since then Siemens
Windpower has grown from 800 to
7,000 employees, with factories in
Denmark, the US, China and India.
Over the same period, deliveries
have risen from 500 to 3,000 MW,
which equates to about 1,500 wind
turbines per year.
World leaders in wind turbines
Siemens Windpower is the world
leader in offshore wind turbines,
and one of the 5–6 biggest names in
land-based turbines.
Siemens moved into the field in
2004 with the acquisition of Danish
Brand new technology
The wind turbines that Statkraft
SCA Vind has ordered from Siemens
are being built in Brande. The
diameter will be 113 metres wide
and the tower will stand 115 metres
tall.
“The impressive size of the rotors
and the power output are entirely
adapted to the average winds on
site. These turbines are designed for
Swedish conditions and moderate
winds,” says Hans Carlsson.
However, the big new innovation
for the turbines on order is that they
apply brand new technology, with
Siemens drawing on its extensive
expertise in manufacturing directdrive motors for the pulp and paper
industry. The new turbines thus
have no gearbox.
“After all, Siemens is also a
world leader in electric motors and
generators. Here, we have taken the
really innovative step of switching
17 NEW WAYS
wind turbines, we expect
uptime in excess of 95 percent,”
says Hans Carlsson.
Many jobs
The wind turbines will generate
many new jobs in central Sweden,
during both their construction and
operation.
“We’re aiming to do as much
of our procurement as possible
locally. However, it has to be on
commercially acceptable terms,” adds
Hans Carlsson.
The major procurements faced
by Siemens Windpower relate to
installation and transport.
“Those are the basic services that
have to be sourced. The installation, for
instance, requires extremely large cranes
that are able to lift 70 tonnes 150 metres
up in the air.”
»This is the biggest framework agreement in wind power ever signed in Sweden«, states Hans Carlsson, head of
Siemens Windpower in in Sweden.
from a traditional driveline in the turbine
to a direct-drive turbine. This framework
agreement with Statkraft SCA Vind is a
huge breakthrough for our new directdrive technology, with a major client
giving their seal of approval.”
Increased uptime
It is true that direct-drive turbines have
been on the market for a long time, but
they have tended to be enormous in both
size and weight.
“What we are doing is delivering a
direct-drive machine that is lighter and
smaller than its predecessors, but with
the same output. In traditional turbines
with a rotor, drive axle, gearbox and
NEW WAYS 18
generator, the machine housing weighs
85 tonnes. The equivalent direct-drive
machine of the same diameter from
Siemens Windpower weighs in at 73
tonnes,” explains Hans Carlsson.
There are numerous benefits. The
absence of a gearbox cuts down on the
number of moving parts – axles, cogs and
bearings – by 50 percent.
“Removing the component with the
most moving parts reduces maintenance
costs, and also increases uptime
considerably over time. Gearboxes have
long been a major sticking point for many
manufacturers of wind turbines, although
our robust offshore turbines have been
spared such problems. With our new
Many long shipments
When it comes to the issue of transport,
discussions are underway with suppliers
that include SCA Transforest.
“We’re shipping the wind turbines
up to the Sundsvall region by sea and
then on by road to the farms,” says Hans
Carlsson.
The transport challenge is
considerable, partly due to size – the
blades are 55 m long and the 70 tonne
tower parts is four metres in diameter –
and partly to sheer quantity, since each
wind turbine makes up eight lorry loads.
For the 65 wind turbines already ordered,
this means 520 superlorries on small
roads through central Sweden, plus a
significant number of project shipments
by sea.
However, the tower itself will not take
up too much space, since Siemens has
come up with a novel concept, where the
tower is disassembled and transported in
containers.
“We’ll be starting delivery in May–
June next year. The overland transport
has to take place at night, accompanied
by one vehicle in front and one behind
with yellow flashing lights,” concludes
Hans Carlsson.
Heavy truck headed
for Aitik mine
In late August, SCA Transforest’s vessel MV Ortviken shipped a 221-tonne mining truck called
a Cat 795F AC from Rotterdam to Holmsund on behalf of Cetonia Shipping.
Text: Carl Johard. Photo: Piet Radder
The mining truck, which can carry 100 tonnes more than its
predecessor, the Cat 793D, came in 31 different parts, all of
which were loaded onto cassettes.
The cargo was one of ten new Cat 795F’s that Boliden
Mineral has ordered for its Aitik copper mine, currently
Scandinavia’s largest open-cast mine and one of the largest
copper mines in Europe.
MODEL: ..........................................................Cat 795F AC
Engine Model: .............................................Cat C175-16
Cylinders: ....................................................................16
Gross Power: .................................................... 3400 hp
Displacement: ..........................................................85 L
Gross machine operating weight:............570 tonnes
Nominal payload capacity: ........................ 313 tonnes
Boliden is investing SEK 5.2 billion in its Aitik 36 project to
double the mine’s production volume – from 18 to 36 million
tonnes of ore per year.
This involves extending the intended lifetime of the mine
from 2016 to 2030 and increasing copper, gold and silver
production, along with brand new mining of molybdenum,
which is used in alloys.
Top Speed – Loaded: .....................................................................64 km/h
Turning Circle Clearance Diameter: ................................. 38.7 TYRE
Fuel Tank: ........................................................................................ 7192 L
Overall length: ..........................................................................15.146 m
Overall Tire Width: .....................................................................8.966 m
Front Canopy Height: .................................................................. 7.800 m
19 NEW WAYS
Unique
reporting
behind SCA’s
many
environmental
successes
The long history and farsighted design of SCA’s
environmental reporting makes it utterly unique. For
more than ten years, SCA has used its renowned
Resource Management System (RMS) to measure
and analyse emissions from its various facilities and
freight transport around the world. This deep and
committed work on sustainability has earned the
Group a number of accolades and wide international
recognition in the environmental field.
Text: Carl Johard. Photo: SCA
SCA was an early adopter of measurements to check the
company’s environmental impact. Back in the 1990s,
the Group launched systematic measurements of the
resources that the company used and its emissions to
air and water. Initially, these covered all the factories
and their processes, with freight added at a later date.
It was at this point that the new Resource
Management System (RMS) was created.
Patrik Isaksson, Director of Environmental Affairs at SCA
NEW WAYS 20
Proud of the system
“This is far and away the most important part
of SCA’s environmental work. RMS allows us to
understand the present and the future by analysing
historical data from previous years. It is also a key
tool for following up on the Group’s overall objective
in the environmental field. The fact that RMS has
been subject to third party auditing over the past
10 years has increased the credibility not only of
RMS but of all our communications regarding SCA’s
environmental work,” states Patrik Isaksson who,
as Director of Environmental Affairs at SCA, is
ultimately responsible for RMS.
“RMS tells us whether we are doing better or
worse than in the previous year. It also gives us exact
levels for the company’s emissions to air
and water, as well as the consumption of
electricity, fuel, freight services, water,
raw materials and recovered paper.”
Over its ten years of continuous
monitoring, the RMS system has
had a direct positive effect on SCA’s
environmental impact.
“We are extremely proud of and
pleased with the system. It has certainly
been a major factor in our many
environmental awards of recent years,”
says Patrik Isaksson.
Greater interest from investors
The ongoing RMS work is managed by
the company’s RMS network, which
comprises around 15 people and is
led by chairperson Ingela Keskitalo in
Barcelona, Spain. A total of around
100 people from around the world are
involved in the work, with every reporting
unit having someone responsible for
environmental reporting. Peter Eriksson,
Logistics and Environmental Manager
at SCA Transforest, is tasked with
compiling data on the whole company’s
freight work, and is also part of the RMS
network.
This network, which meets several
times a year, conducts analyses,
continuous improvement work and
preparations for the next year’s data
gathering and reporting.
Once all the data has been gathered
and the calculations carried out, SCA
produces various reports, for example
on emission levels for carbon dioxide,
nitrogen dioxide and sulphur dioxide.
SCA then incorporates this information
into its annual sustainability report,
which also presents figures on energy and
water consumption, as well as freight
work in tonne kilometres.
The report generates considerable
interest:
“Investor are showing increasing
interest in SCA’s RMS data, since the
report explains just how the company
manages resources and impacts on
the environment. The fact is that 23
percent of SCA’s shares are held by
owners with a keen interest in the
company’s sustainability work,”
comments Patrik Isaksson.
Reporting on freight
SCA is a particular trailblazer when it
comes to environmental reporting for
freight transport.
“We are especially proud of our
freight reporting. We gather freight
data from across the whole SCA Group
around the world, including how many
tonnes are sent between different
points, over what distances and by what
mode of transport. This information,
which covers all shipments of both
finished goods and raw materials, is
then imported into a large database,
where it is processed based on emissions
calculations from the Network for
Transport and Environment (NTM)
in Sweden. We believe that we are
quite unique in having such a detailed
system for the company’s freight work,”
concludes Patrik Isaksson.
NTM, an independent network for all
parties involved in transport issues, has
compiled emission values for all modes of
transport by road, sea and rail.
Boom in
eco-friendly
paper
The environmental certification symbol
of the Forest Stewardship Council (FSC)
is increasingly common on magazines
and printed material. In Britain, use
of FSC certified paper increased from
1 percent in 2008 to 7 percent in
2010. SCA’s deliveries of FSC certified
publication paper have increased
substantially since it was introduced on
the market at the beginning of the 2000s.
2010 saw SCA’s Ortviken and Laakirchen
paper mills deliver over a quarter of a
million tonnes of FSC certified printing
paper. Deliveries of FSC paper grew by
35 percent last year. Although the main
demand is for magazine-quality paper,
deliveries of FSC certified newsprint are
also on the rise. Demand for FSC certified
pulp from Östrand Pulp Mill remains
high, with deliveries of FSC pulp
exceeding 50 percent, as
in 2009. Of SCA Timber’s
deliveries of sawn timber
and finished products,
35 percent were
FSC certified.
21 NEW WAYS
Uncertain future over
EU Sulphur Directive
Right in the middle of the summer holidays, the European Commission decided to begin the
process of implementing the IMO’s Sulphur Directive in a future EU Directive. “This may mean that
for at least five to ten years, we will have 35 times tougher limits than our closest rivals in the region.
The only really concrete thing we can work on up until 2016 is creating systems using larger ships
that consume less fuel per tonne kilometre,” states SCA Transforest’s CEO, Magnus Svensson,
in this interview.
Text: Carl Johard. Photo: Linda Snell
Do you still think it is possible to get this
decision changed?
“Yes, I do. Anything is possible in the
wonderful world of politics.”
Is sending shipments via Trondheim
or some other Atlantic port an option?
“No, we don’t think so. We have
industries from Sundsvall all the way up
to Piteå and much of our volume heads
for Lübeck and Rotterdam. The cost of
transferring shipments to Trondheim
would be far too high. It is therefore
difficult to imagine any cost-effective
option that involves the Atlantic ports.”
How does this decision affect SCA
Transforest’s strategic planning?
“This decision affects every unit within
SCA and we now have to seriously
incorporate this into our future
investment plans.”
Is investing in scrubbers
for the ships an option?
“No, the scrubber technology available
today is not suitable for us. Simply
investing in a scrubber that then releases
all the sulphur-contaminated water into
SCA invests
in Brazil...
...and grows in Turkish hygiene market
Did the decision come as a surprise to you?
“Yes, it was entirely unexpected. Now
we face even more of an uphill struggle
in terms of trying to rectify the matter in
the future.”
SCA is acquiring the Brazilian hygiene
products company Pro Descart. The
purchase price corresponds to SEK 450
million on a debt-free basis. The company
has annual sales of SEK 360 million.
Brazil is the most highly populated
country in South America, with 190
million inhabitants and favourable
economic growth. The market for
hygiene products has good potential,
not least in incontinence care products,
which have shown double digit growth.
Pro Descart is a family-owned company
focused on incontinence care products,
but also sells baby diapers and wet
wipes. The company has around 400
employees.
NEW WAYS 22
the sea makes no sense environmentally
or economically. And if we have to carry
the sulphurous water long distances
on board the ships, we will lose load
capacity. On top of that, there are all the
conversion costs.”
How about LNG ships?
“With LNG, once again you have to
convert the ships or buy new ones. What
will that cost us and what will the price
of LNG be in the future? These are
two sizeable questions that first have to
be resolved. There is a significant risk
that the price of all types of energy is
going to continue rising. Germany is
set to close 12 nuclear power stations
SCA has acquired 50 percent of the Turkish hygiene products
company Komili from Yıldız Holding, the largest food group in
Turkey. The purchase price corresponds to SEK 308 million on a
debt-free basis.
Komili is currently the fourth largest
producer of baby diapers and feminine
care products in Turkey, and also has
operations in associated product areas
such as wet wipes, soaps and shampoos.
The company will operate as a joint
venture between SCA and Yıldız
Holding.
The acquisition includes local
production and access to a strong
distribution network in the country.
Komili’s annual sales are approximately
SEK 530 million.
SCA has also acquired 95 percent of the
Turkish hygiene products company San
Saglik, producer of incontinence care
products, from the family-owned MT
Group. The purchase price corresponds
to SEK 95 million on a debt-free basis.
San Saglik has rapidly captured market
share since the company was founded
in 2008, and is now the second largest
player in incontinence care products in
Turkey. The acquisition comprises local
production and access to strong brands.
San Saglik generates annual revenues of
approximately SEK 100 million.
and this is likely to drive up demand for
all the alternative energy sources and
fuels, including natural gas. So what
will natural gas cost in the future? It is
difficult to make a major investment and
convert our ships without knowing where
the price of natural gas is going to go. It
might end up being just as expensive.”
Will freight be switched to
road and rail instead?
“No, we don’t think that will happen
either. There is already limited capacity
on road and rail, and there are still
no solutions to the issue of increasing
volumes on these modes of transport.
There is an imminent risk that land
transport prices will also skyrocket once
the systems are at full capacity.”
So what are the remaining options?
“We and most other players will be
following developments extremely closely,
waiting to see what happens up until
2016, when the new EU Directive is
scheduled to come into force in the Baltic
Sea, North Sea and English Channel.
It is going to cause extremely distorted
competition. The rest of the world is
required to go down to half a percent
by 2020 – a deadline that they have the
Magnus Svensson, CEO at SCA Transforest
option of postponing until 2025. We were
never given any such leeway. For at least
five to ten years, we will have 35 times
tougher limits than our closest rivals in
the region.
“There will not be much shipbuilding
going on for the time being. We may
though see the development of attractive
technical solutions that steer us onto a
particular course in the future. The only
SCA continues to be
in the sustainable global top
SCA has qualified for the eleventh
consecutive year for the FTSE4Good
global sustainability index. FTSE4
Good’s review proved again that SCA has
a strong sustainability strategy.
This time SCA got 98 points out of
possible 100 in FTSE4Good’s rating.
”During 2010, SCA began the
installation of a lime kiln at the Östrand
pulp mill in Sweden which will cut
carbon dioxide emission by 80% and
we have released a new global hygiene
supplier standards, to name just
two examples,” says Marita Sander,
Sustainability communications manager,
SCA. ”It’s of great value to us that our
commitment is being recognised by
independent evaluators.”
really concrete thing we can work on up
until 2015 is therefore creating systems
using larger ships that consume less fuel
per tonne kilometre. That challenge is
going to become increasingly important.”
SCA wins export
award in Germany
SCA’s hygiene operations in Germany
are this year’s winner of the Swedish
Export Award. Since 2003, the
Swedish Export Prize has been
awarded each year by the Swedish
Chamber of Commerce in Germany
and the Swedish Trade Council in
cooperation with the Embassy of
Sweden in Berlin.
SCA is represented in Germany
with hygiene brands TENA
(incontinence care products),
Tork (away-from-home hygiene
solutions), Tempo (toilet tissue and
handkerchiefs), Zewa (toilet paper
and kitchen rolls) and Danke (toilet
tissue).
Personal Care starts at
Interforest Terminal Rotterdam
With no doubt the most adapted fluff pulp warehouse in any of Europe’s main ports, we are not shy to call ourselves fluff
pulp experts. To ensure the high hygienic standards that fluff pulp demands, we have a dedicated super-clean warehouse
with dock boards for trucks and containers. Whether the fluff pulp is containerised or on a break bulk vessel, we can offer a
complete service from arrival in Rotterdam all the way to your customer. Our prime location, with excellent sea and rail links,
and our network of hauliers enable us to find the best logistics solution for your fluff pulp.
Of course, all other types of forest product enjoy the same high service level as fluff pulp does.
we sharpen your competitive edge
scatransforest.com
info@scatransforest.com