The forest is a renewable resource that forms the core of SCA’s operations. Around the forest, SCA has built a well-invested and efficient value chain. SCA wants to grow its forest resource and further increase the value from each tree.

Increased value from each tree

Around the growing forest resource, SCA has built a well-invested and efficient value chain that maximizes the value of each tree. SCA’s investments help to strengthen the integrated value chain and to achieve favorable returns, at the same time as the company maintains a healthy balance sheet.

Growing forest asset

The forest is a resource that provides stable profitability and increase in value. Active and sustainable forestry maximizes growth in the forest. The forest growth rate is about 4%. Today, SCA only harvests approximately 60% of the growth, which increases the standing volume and future cash flow.

1. Increase growth and harvesting, optimizing conservation methods

Increased growth will enable harvesting to gradually increase by 25% annually. SCA continues to acquire forest in the Baltic states. Increase the precision and quality in biodiversity conservation measures.

2. Increase pulp production

SCA is investing SEK 8bn in chemi-thermomechanical pulp (CTMP) at the Ortviken industrial site and is evaluating opportunities for the continued expansion of the Östrand pulp mill.

3. Develop business opportunities in renewable energy

SCA’s forest assets and industrial operations provide the company with excellent possibilities to develop new business in the field of renewable energy, where by-products from the forest and from SCA’s industries provide the raw materials. SCA is conducting intensive development work in the fields of biofuels, green chemicals and wind power, and exploring various forms of partnership in these areas. Wind power production is increasing on SCA’s land and the development of biofuels and green chemicals is continuing.

4. Increase containerboard production

The kraftliner market – paper for transport packaging – continues to grow. A strong global economy, growth in e-commerce, the transition from plastic packaging to renewable materials and strong industrial development drive demand for transport packaging. SCA is investing SEK 7.5bn to increase the containerboard production from 450,000 to 725,000 tonnes.

5. Reduce exposure to publication paper

In 2020, the decision was taken to completely discontinue the publication paper operations.

6. Wood: moving forward in the value chain

The most valuable part of the tree is used for sawlogs. Efficient sawmill operations ensure that as much as possible of the tree is used for high value wood products. The value of the forest is secured through the focus on value-added products for the industry and the building materials trade.

Strong project portfolio driving profitable growth

SCA sees significant potential for continued profitable growth. Investments must contribute to SCA’s integrated value chain and enhance the value creation from SCA’s forest resource. Projects must also provide favorable returns and ensure that the company maintains a healthy balance sheet.