sca magazine shape 4 2009

8/7/2019 SCA magazine SHAPE 4 2009

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A MAGAZINE FROM SCA ON TRENDS, MARKETS AND BUSINESS Nº 4 2009

TURNINGEU TRANSPORT

GREENER

NEW MEDICINEFOR THE

PHARMACIST

•

P

HO

TO S PEC

IAL • N

EW S P R I N G

S T Y L E

• F O

REST

FASHION

THE TOILETTHAT CHANGESTHE WORLD

WOOD FIBERSTRAIGHTOUT OF SCIENCEFICTION

SCA GOES LEAN ★ STRONG REPORT ★ VALUED FORESTS

W me NEW WAGE EARNERSTAKE CHARGE



6

Contents N 4 2009

As women worldwideincreasingly enter theworkforce and earn theirown income, the businessopportunities are hugefor companies. That is, ifthey can provide productsand services that makewomen's lives easier.

FOR THOSE WHO

POTENTIAL IS GREAT

WOMENTAILOR THEIR PRODUCT OFFERING TO



[ 4 *2009 ] SHAPE SCA *3

16

SCA Shape is a magazine from SCA, primarily geared toward share-holders and analysts, but also for journalists, opinion leaders and oth-ers interested in SCA's business and development. Shape is publishedfour times a years. The next issue is due in March 2010.Address SCA, Corporate Communications, Box 7827, 103 97Stockholm, Sweden Telephone +46 8 7885100 Fax +46 8 6788130

Publisher Bodil Eriksson Managing editor Anna SelbergEditorial Anna Selberg, SCA; Anna Gullers and Göran Lind,Appelberg Design Tone Knibestöl och Maria Lindén, AppelbergPrinter Sörmlands Grafiska AB, KatrineholmCover photo : Pysse Holmberg

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06

04 SHAPE UPBuildings that withstand earthquakes, whatwomen can’t talk about, and SCA School – readmore on the Shape up pages.

06 SHAPE COVERWomen worldwide want products and services thatsave time. Companies that understand this will bethe winners as female purchasing power grows.

16 TRENDA new EU directive upsets plans of Europe ’ s bigpharmacists. Read also how transport will becomemore eco-friendly in the Trend pages.

21 PROFILEBindeshwar Pathak’s toilet has not only helped thepoor improve their hygiene, it has abolished whatwas once an oppressed occupation in India.

24 TECHNOLOGYCombining wood fiber with other materials,researchers have discovered amazing properties of the end products.

26 SCA INSIDE

Toyota does it. So does SCA. Lean production isthe way to keep production in shape. Read alsoabout a campfire you can take with you anywhere.

30 OUTLOOK Woods go urban. Buying and owning forests – orjust living in one – is the hottest trend. Shape helpsyou dress like the king of the forest.

34 ECONOMYSCA delivered a quarterly report that surpassedalmost all expectations.

SCA Shape is published in Swedish and English. The contents are printed on GraphoCote 80 gram from SCA Forest Products. Reproduction only bypermission of SCA Corporate Communications. The opinions expressed herein are those of the authors or persons interviewed and do not necessarilyreflect the views of the editors or SCA. You can subscribe to SCA Shape or read it as a pdf at www.sca.com.

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4 *SCA SHAPE [ 4 *2009 ]

The shortage of toilets causes majorproblems in the third world’s enormousslum cities. A new Swedish inventioncan solve the problem. The Peepoobag, as it is called, is made of biode-gradable plastic with a thin layer ofurea on the inside. The urea starts thebreakdown process, raises the PH valueand kills bacteria, viruses and parasitesthat can cause diseases.

“The breakdown process for fecal mat-ter takes two weeks at 32 degrees Celsius(90 F) and four weeks at 20 degrees Cel-sius (68 F). The bag itself is turned into

carbon dioxide, water and earth after ayear at the most,” explains Camilla Wir-seen, an architect and project leader atthe company Peepoople, which has takenout a patent on the bag.

The annual cost of the bag for oneperson is less than $12. The idea is touse it in the slum cities of the thirdworld. It has been tested on a largerscale in Nairobi’s slum city of Kibera.

The inventor of the bag is AndersWilhelmson, an architect and profes-sor at the Royal Institute of Technology’sSchool of Architecture in Stockholm.

Toilet bags to the rescue

ot a i

SHAPE UP

Recycling gets its own day in the USdedicated to encourage Americansto recycle and to buy recycled prod-ucts. Nearly 750 local organizers haveregistered almost 2,400 events onlineat americarecyclesday.org. Educationalmessages, drop-off programs andelectronics collections can be found allover the country.

“By celebrating America RecyclesDay we are spreading the word that weall have a responsibility to support re-

cycling through our dai-ly choices and actions,including purchasingproducts manufac-tured from recycled

materials,” says Mat-thew M. McKenna, pres-

ident and CEO of KeepAmerica Beautiful, oneof the organizations be-

hind the event.

AMERICA RECYCLES

L oWHEN IT COMES to a certain sen-sitive health topic, women’s lips aresealed, according to a new “BladderTalk” survey of 780 women in NorthAmerica aged 35 and older.

One woman in four suffers from

bladder weakness, but nearly 40 per-cent of women with symptoms havenever discussed their condition withanyone. Half the women surveyed (51percent) feel that bladder weaknesshas a strong impact on their daily lives.More than a third (37 percent) say theywould live differently without bladderweakness. Even with the impact it hason their lives, 43 percent of the respon-dents have never done anything abouttheir symptoms, and only 17 percent

have researched the condition for moreinformation. “Just because womendon’t like to talk about bladder controlissues doesn’t mean the condition is go-ing away,” says Ankie Cedergren-Borgat SCA Personal Care North America.

“We believe that a signi cant part of our responsibility to our consumers isto give them the resources to under-stand their condition and solutions toimprove the quality of their everydaylife. We also want to spark discussionsaround the condition so it is broughtout in the open.”

The survey was conducted by Har-ris Interactive, sponsored by TENA,SCA’s brand for incontinence careproducts.



[ 4 *2009 ] SHAPE SCA *5

Wooden buildings survive an earth-quake better than many buildings madeof other materials. That was the ndingof a study conducted by the Italianwood research institute IVALSA, thetrade publication Skog och Industri(“Forest and Industry”) reports.

To withstand an earthquake, con-structions must be exible and energy-absorbent, which wooden buildings arebecause of bolted and nailed joints. Inthe experiment, a seven-story buildingmade of wood was subjected to forcesequivalent to 7.2 on the Richter scale.The wooden construction held.

WOOD HOUSESURVIVES QUAKE

DO N'T ER A SE!

It sounds almost like a philo-

sophical question. What is thevalue of a tree?

SCA is the largest private ownerof forests in Europe with 2.6 mil-lion hectares (6.4 million acres) offorestland. A hectare is 100 x 100meters. A soccer eld is 68 x 105meters, which is 0.7 hectares (1.7acres). So SCA owns forestlandequal to about three million soc-cer elds.

Forest analysts traditionallyvalue forests based on their supplyof timber.

When trees are felled and placedon a trailer truck to the sawmillor paper plant, they are de nitelyproduct. When they are still in theforest, they are at the same timeproduct and production becausethey are continuously growing andproducing more timber.

For that reason, people usuallytalk about the productivity valueof the forest. That is the total of the

timber supply that exists right now

plus the timber that will be avail-able for felling in the future.

Forests have also taken on anew role, one they had in the pastas well. As biofuel starts to re-place oil and coal, more parts oftrees can be used for energy.

Still, forests are not just treesand nance. That complicatesthings for forest analysts. Manypeople who buy forests are notjust out for the economic value oftrees. They want to be able to walkaround in the woods and feel whata beautiful place it is. Realtorsdealing in forest properties indi-cate that buyers from their area arepaying a higher price for a beauti-ful forest than for a less attractiveforest that has more timber.

Another factor affecting the priceof a forest property, just as whena person buys a home, is location.Forests within a 100-km (60-mile)radius of densely populated areas

are in general twice as expensive percubic meter of timber as a property ina remote location.

But there are other factors apartfrom the timber supply and locationthat affect the price. These include

hunting, leaseholds, lakes and otherwater on the property. All these cangenerate income during the year.

In its annual report, SCA has chosento value its trees and land separately.Trees are called “biological assets,”and their value is calculated based onthe estimated cash ow they can gen-erate in the future. This cash ow isbased on the expected value of theirtimber less felling costs. That also in-cludes the cost of planting new treeson the land.

SCA recognizes standing timber atfair value, with the value amoun-ting to SEK 24.7 billion at year-end2008. Added to this is the valueof forestland, SEK 911 million. Thevalue per hectare of productiveforestland was SEK 12,232, compa-red to SEK 9,050 in 2006.

HOW DO YOU VALUE A TREE?TEXT: CARINA GERKEN CHRISTIANSEN SC A SC HOOL

DAMP HANDS spread 1,000 timesmore germs than dry hands. This is animportant fact for the public to keep inmind as countries around the world tryto tackle the escalating H1N1 (swine u) pandemic. Advice from all authori-ties, including the World Health Or-ganization and the US Centers for Dis-ease Control and Prevention, remainsthe same: Good hand hygiene is key.Despite this, too few people know howto wash and dry their hands in the mosthygienic way.

“To dry your hands properly is as im-portant as washing them. This combi-nation is a simple and unbeatable wayto reduce the risk of becoming infected,especially in public places,” says JennyLogenius, product and marketing man-ager for Tork at SCA Tissue Europe.

Up to 99 percent of the germs can beremoved by drying your hands prop-erly. When away from home, a single-use paper towel ensures that hands canbe completely dried and are virtuallygerm-free.

Dry hands safest



6 * SCA SHAPE [ 4 * 2009 ]

TEXT: SARA BERGQVIST PHOTO: PYSSE HOLMBERG

6 * SCA SHAPE [ 4 * 2009 ]

SHAPE COVER

omen are frustratedand dissatis ed withwhat’s being offeredand are looking for

products and services that can savethem valuable time, but companiesare bad at meeting their needs,” saysKate Sayre at the Boston ConsultingGroup.

Together with Michael J. Silver-stein, she has written Women Want

More , a book based on a survey of 12,000 women from 22 countrieswho answered questions about theirconsumption, work and leisure habitsand how well different companies andindustries meet their needs.

“Rather surprisingly, there’s areally broad consensus on demandsand desires among women from dif-ferent countries,” Sayre says.

Most women in the survey worked40 hours or more a week. In total,they spent two-thirds of their time ontheir jobs, looking after the childrenand household shopping and chores.To manage everything, many womenchose to sacri ce sleep. One out of eight women with children at homeslept ve hours a night or less. Manyof the women felt they had too manydemands on their time, didn’t havetime for themselves and faced con ictsbetween their different priorities.

“The biggest reason for dissatis-faction among women was that com-panies waste their time,” Sayre says.“Companies that can offer speedy pur-chasing processes and decisions andprovide products that simplify wom-en’s everyday lives have a lot to win.”

Women were most dissatis ed

w

W me Companies that are good at marketing themselves towomen will be the big winners once the economy getsgoing again. Even though the world’s women havegreater purchasing power than all of India and Chinacombined, most companies continue to target men.

HOLD TRUMPS



with nancial services. Many of themthought they hadn’t been treated withrespect and had been given bad or con-tradictory advice.

“Companies have to come up withsimpler, clearer offerings where thebene ts of the service are clear andobvious,” Sayre says.

The food, health care, fashion andauto industries were also given thethumbs down. Sayre and Silversteinsay that in today’s society, it’s still dif- cult for women to nd a pair of pantsthat ts them, buy a healthy meal orpurchase a car designed for functionrather than speed.

Women today control roughly65 percent of household income andsometimes significantly more. Indollar terms, that’s equal to a lofty12 trillion dollars a year.



8 *SCA SHAPE [ 4 *2009 ]

SHAPE COVER

Where thead is placed

is just asimportant

as how itis done.

“Within the next few years, womenwill have another 5 trillion dollars tospend on products and services,” Sayresays. “There’s great potential here forcompanies that can tailor their offer-ings so they t women better.”

The largest increase will take placein developing countries as a result of the growing number of women whoare getting an education and workingfor a living.

“Especially in India and China,incomes have grown really rapidly,”Sayre says.

THE SURVEY FOUND great opti-mism among women in developingcountries. In Brazil, for example, nine

out of ten women are optimistic aboutthe future, compared with only oneout of ve in Italy.

“Far more women in developingcountries than in industrialized coun-tries view the future positively andthink that life will be better for themand those around them,” Sayre says.

In many developing countries,women also tend to trade up tohigher-quality goods and services.Russian women are the ones whoput the greatest emphasis on wealthand consumption. They want toenjoy their newfound prosperityand are willing to spend their moneyon luxury items, which has createdopportunities for both national andinternational brands in Russia.

Some companies saw the potentialof marketing themselves to womenin developing countries early on. Forinstance, Natura has had success sell-ing its affordable, non-animal- tested

cosmetics in Brazil, and Cinemex showsnew movie releases to mothers and theirchildren during the day in Mexico.

Campbell Soup is another goodexample. When the company decidedto invest in the Russian market, it failedat rst. Russia consumes the most soupin the world, and the company had notunderstood the strong soup culture thatprevailed there. Women put their heartand soul into making soup. Recipes arehanded down from generation to gen-eration, and ready-made soups werehardly at the top of their wish list. Sothe company came out with a soup basethat women could build on. It meantthat women could adapt the soup to

their own style and taste, yet still cutpreparation time in half.

“In developing countries, there mayalso be completely different argumentsthan in the industrial world,” Sayrepoints out.

She mentions a commercial for asoap manufacturer, a company that hashad great success selling its products inChina.

“The commercial shows a little boywho’s always sick so he doesn’t have

the energy to pay enough attention inschool,” she says. “But when he startswashing with this soap, he’s suddenlyhealthy and gets the best grades. Thecommercial is so successful because itplays on the enormous importance thateducation has in China.”

THE AUTHORS

Kate Sayre and Michael J.Silverstein are business consult-

ants at the Boston ConsultingGroup. Sayre is a partner at thecompany’s New York of ce andworks on marketing ef ciency,among other things. Silversteinis a senior partner at the com-pany’s Chicago of ce. He haspreviously written several bookson marketing and is frequentlyquoted in newspapers such asthe New York Times and the Wall

Street Journal .

Only 7 percentof Japanese women

consider themselves attractive,compared with half of Indian

and Russian women.

German womenperform 93 percent of

household chores. They alsohave greater responsibility

for tasks like car and home repairscompared with women

from other countries.



[ 4 *2009 ] SHAPE SCA *9

WHERE THERE’SGOLD TO HARVEST

Kate Sayre and Michael J. Sil-verstein list areas with potential:

FOOD: Shopping for food andpreparing it take too much ofwomen’s time. Women wanthealthy alternatives at affordableprices that are easy to get hold ofand can be prepared quickly.EXERCISE: Many women wantto work out but have a hard time tting it into their a lready jam-packed schedules. One exampleof a company that’s been suc-cessful is Curves in the US, whichonly targets women. The com-pany offers workouts that focus

on health, well-being and grad-ual weight reduction.BEAUTY: The survey shows thatmany women are dissat is edwith the products available, theyfeel there is too much to choosefrom, and they see the industryas dominated by men who makewild guesses about what womenreally want.CLOTHING: Women are look-ing for comfortable clothesthat t nicely, preferably atgood prices. One example of acompany that has done well isBanana Republic. It sells various“families” of clothes that t dif-ferent body types and have con-sistent sizes. If you’ve tried onone size and one family you like,it’s easy to buy other clothesin the same family and size andknow they wil l t well .FINANCIAL SERVICES: Thereis great potential here becausewomen in general are unhappywith these services.HEALTH CARE: Women are dis-satis ed with thei r doctors and

hospitals and also think theyspend too much time makingappointments, waiting for thedoctor and waiting for testresults.

Japanese mencontribute least tohousehold tasks,

Indian men contributemost.



10 *SCA SHAPE [ 4 *2009 ]

WOMEN IN THE WORLD

Women arehappiest between the

ages of 18 and 25 when theyare single and then again after

turning 50. The years in betweeninvolve greater stress due to

the demands ofchildren and marriage.

✪ There are roughly 3.39 billionwomen and 3.44 billion menacross the world.

✪ Women constitute 47 percent ofthe world’s university students.

✪ One billion of the world’s womenwork for a living.

✪ The number of women who workis increasing 2. 2 percent a year.That means there will be at l eastanother 90 million women work-ing in 2013.

✪ Total income for women acrossthe world is about 11 trillion dol-lars a year. It is estimated that injust ve years this wil l increa seby 50 percent. In addition,women often control a

signi cant por tion of otherhousehold income.

✪ It is estimated that in the next ve years, average income forwomen will increase by 3,300dollars.

✪ Salary differences betweenwomen and men are decreasing.Women currently earn 54 dollarsfor every 100 dollars men earn. Itis estima ted that in ve years the gure for women will increase to59 dollars.

✪ The polit ical and nancial powerof women is slowly increasing.Rwanda was the rst country inthe world to have a majority ofwomen in parliament in 2008.

50SHAPE COVER

“OBVIOUSLY, IT’S CLEAR thatwomen over 50 are a well-to-do tar-get group,” says Ann Spennare, aproject manager at the Swedish adver-tising agency Forsman & Bodenfors.“They’re aware, they’re a little betteroff and can buy the products they want.They aren’t as easy to please and oftenthink they’re not affected by ads. Butnaturally, they’re affected just likeeverybody else.”

Almost every company is ghting forthe same target group, she says – people

WELL-TO-DO BUT

FORGOTTEN

Women over 50 in industrial countries arehealthy, have a lot of time and have money intheir purses. Yet they’re a relatively forgottengroup that few companies dare to focus on.

between 25 and 45 who have the leasttime and the most stress.

“Many companies are afraid of usingolder women in ads because aging isseen as something negative and is asso-ciated mainly with ads for variousdrugs and medical devices,” she says.

One example where younger mod-els are used almost exclusively regard-less of the age of the company’s targetgroup is the apparel industry.

“Otherwise, people are afraid of coming across as old-fashioned andscaring off younger buyers,” Spennaresays. “They count on attracting olderbuyers nonetheless.”

She thinks that companies don’t nec-essarily have to indicate their targetgroup in the ad.

“WHERE THE AD IS PLACED is justas important as how it is done,” shesays. “For instance, you can place anad for running shoes in magazines thatyou know women read rather than innewspapers.”

Another important way for compa-nies to reach women over 50, she says,is to invest in product development.

“The travel industry has been reallygood at tailoring products to t thisgroup,” Spennare says. “It may involvemore luxurious alternatives or hotelsfor couples instead of families withchildren.”

Russian womenchoose money and shopping

as important sources of happiness.The majority of other women

see love as the greatest sourceof happiness.



The biggestreason fordissatisfaction amongwomen was thatcompanies wastetheir time.

China’s one-childpolicy and a poorly developed

pension system mean that morethan one out of three women inthat country see caring for their

parents and in-laws as one of theirgreatest challenges.

TEN QUESTIONS FOR SMART COMPANIES

✪ Is our company good at listeningto our customers and meetingtheir needs?

✪ What are our customers dissatis- ed with? What a re the greatestcauses of dissatisfaction? Howcan we address this?

✪ How do we de ne our market a sbroadly as possible? What time-saving solutions can we offer?Is there a market segment thatwe’re not serving as well as weshould?

✪ How do women make their buy-ing decisions for our products?Where, when and how do theybuy? What do they want?

✪ Is the product design adapted towomen?

✪ Does our marketing meet wom-en’s need to save time?

✪ Does our sales staff understandwhy the service or product isbetter for women than other

alternatives?✪ Is our marketing genuine? Does it

tell a good story? Does it convertskeptics into believers?

✪ Are we thinking of the productor service as a step in a continualprocess of improvement, experi-mentation and learning?

✪ Is this a major market for usrather than a tiny, insigni cantsegment?



12 *SCA SHAPE [ 4 *2009 ]

SHAPE COVER

THEY KNOW a ome anHow do you best market yourself to women?

The four women at the Ampersand consultancyknow. Five years ago they helped develop aconcept car for Volvo that focused on women’sneeds. Now they’re investing further in women,over-50s and immigrants.

“WE LEARNED an enormousamount when we worked with Volvo’sconcept car, and now we want to takethat experience and use it with otherindustries,” says Camilla Palmertz,one of four partners in the businessdevelopment consultancy Ampersand.

Volvo’s concept car, which wasshown at the Geneva Motor Show ve years ago, attracted consider-able attention from media aroundthe world and was frequently called

Volvo’s girl car.“But it was real ly about us look-ing instead at what Volvo’s most

demanding customers had ontheir wish list, and those cus-tomers were women,” Palmertzsays. “They had basically thesame wishes as men but theirlist was longer.”

A few details included in theconcept car were run- at tires,which could still be used afterthe tire was punctured, and auto-matic opening of both the doors

and trunk. Another feature involveda scan of the driver’s body, producinga recommended setting for the seat,neck support, seatbelt, steering wheeland pedals, which was stored in thecar key’s built-in memory. The seatadjusted automatically to the rightposition when the key was put in theignition.

“You can now choose variations of these functions in Volvo’s models,”Palmertz says.

A year and a half ago, the part-ners started their consultancy. Theobjective is to help different compa-nies reach new target groups such aswomen, over-50s and immigrants.They are currently helping a tradeorganization for the boat industry toencourage more women to buy boats,as well as a large shopping mall look-

ing at pro tability from a genderequality and diversity perspective.They are also working on a still-secretproject for people over 50.

“In Sweden they’re sitting on 80percent of the wealth,” Palmertz saysof this demographic group, “but somecompanies are afraid of appealing tothem because it’s not considered cool.Yet sometimes it’s important to seewhat target group you actually have.”

She mentions the Swedish Heart-Lung Foundation as an example.Year after year, they took in the sameamount from donors until they beganto aim their marketing at people over50, the group that donated the most.

“By targeting their marketing at thedonors they actually had, and usingcelebrities in their marketing thatwere well known among their targetgroup, they doubled their income,”Palmertz says.

Women arewilling to buy products

and services from companiesthat take social and environmental

responsibility and make good

things for the world, especiallyfor other women.

More thana third of French

women are dissatis edwith their stress levels and

feel angry almostall the time.

Camilla Palmertz

ELISABETH OHLSSON WALLIN



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14 *SCA SHAPE [ 4 *2009 ]

In the book Women Want More, the

authors argue that the purchasingpower of women will grow from 20 to

28 tril lion dol lars over the next ve

years. In what way does that affect

SCA’s growth opportunities?

“Greater purchasing power for womenis obviously positive for SCA because it’slargely women who buy our products.That’s especially the case with hygieneproducts like sanitary protection, babydiapers and incontinence care but also inpackaging and publication papers, wherethe end customers are largely women.”In the book, it’s claimed that many

women are dis satis ed with theselection of products and services

and that many companies fail to meet

their needs. Should SCA take this

criticism to heart?

“No, I don’t think so, actually. Whenwe develop our products, it’s done to-gether with our end users – that means

often women. We explore what theywant and how our products can be im-proved. For products that are targeted at

women, we’re fo-cused 100 percenton understandingtheir needs.”In which geo-

graphic markets

do you see the

greatest poten-tial as women’s

purchasing

power grows?

“The rise inwomen’s purchasing power that’s ta-ken up in the book largely concerns theWestern world. This, of course, is goodfor SCA, but we see even greater poten-tial in the developing countries, wherea really large share of women don’t usesanitary protection or incontinenceproducts and where household nances

don’t always allow baby diapers.”Does SCA have any particular stra-

tegy for women as a customer group?

“Because women are the main targetgroup for a number of our products,women are key in our strategies. But wehave no integrated strategy for the entirecustomer group. But to base the workon women’s needs and desires whennew products are being developed cangive new input. We know, for instance,that the environment is usually moreimportant to women than to men andthat they’re the ones who buy eco-labelproducts the most.Does SCA have enough women inexecutive positions in the organiza-

tion to understand this market and

develop relevant products?

“SCA has many women at key posi-tions. But then I think maybe that youdon’t necessarily have to be a womento understand this market.”

Bodil ErikssonBodil Eriksson

Bodil Eriksson

“SCA believes in developing countries”

SHAPE COVER

TEXT: GÖRAN LIND PHOTO: ISTOCKPHOTO AND SCA

SCA knows what womenwant. That’s what BodilEriksson, senior vicepresident of CorporateCommunications, says.She believes that thecompany’s future expan-sion will take place main-ly in poorer countries.



[ 4 *2009 ] SHAPE SCA *15

TEXT: MICHAEL GIANUZZI ILLUSTRATION: ISTOCKPHOTO

It’s the developing markets, mainly in Asia andLatin America, rather than Europe and the US thatare driving global growth. Their material needs willcontinue to keep the wheels turning – not just thisyear but for many years to come.

“IN THE LONG TERM, the new mid-dle class in the developing countriesis expected to have the potential to bethe strongest driving force in the globaleconomy,” says Lars Gunnar Aspman,head of macro strategy at SEB PrivateBanking.

A large middle class is developingin these high-growth countries, andthe people want to catch up in terms of material wealth. The rise of these econ-omies is also fueled by world demand

for the raw materials they produce.When the nancial crisis struck, thedeveloping markets – with the excep-tion of Eastern Europe – were not ashard hit as the established industrialcountries, and recovery there may bequicker. Asia, with China and India themain drivers, is expected to be the fast-est-growing region in 2010, followedby Latin America. The other BRICcountries, Brazil and Russia, will alsopick up speed next year.

“New statistics show that ChineseGDP growth was 8.9 percent in thethird quarter,” Aspman says. “Thatmeans that China has accelerated from agrowth rate of 6 percent at the beginningof the year to almost 9 percent in threequarters. This suggests they should man-age 9 to 9.5 percent next year.”

India is moving a little less quicklybut will most likely reach 7 to 8 per-cent growth in 2010. As a result, Asiaoutside Japan will remain the fastest-

growing region in the world.Latin America is expected to comein second, with Brazil leading the way.Brazil’s economy shrank during the rst half of the year, but things haveturned around there as well. While theadoption of a new 2 percent tax on for-eign portfolio investments is worri-some, the prospects for the long termare bright. The country has put its eco-nomic base in order, the nancial def-icit is small, and there will be major

investments in infrastructure ahead of the 2014 World Cup and 2016 Sum-mer Olympics. Brazil will also be aneven more important producer of rawmaterials now that the exploitation of offshore oil elds has begun in earnest.

The growth forecast for Brazil nextyear is around 4.5 percent and for allof Latin America 3.5 to 4 percent. Sev-eral other Latin American economies,including Chile, Argentina and Mexico,are also expected to accelerate in 2010.

“With sustained high growth inGDP, incomes and private consump-tion will continue to grow rapidly inthe BRICS,” Aspman says. “As early asnext year, these countries may accountfor over half the growth in global pri-

vate consumption.”Consumer needs are great, he says.“Especially in India and China,

the number of cars, personal comput-ers, broadband subscriptions and cellphones is extremely low calculated per100 people,” he says. “In Russia andBrazil the number is higher, but com-pared to the OECD countries there aresigni cant material needs to be met inthose countries as well.”

ONE EFFECT of the high growth inGDP and income for developing coun-tries is that income gaps in the worldwill narrow over the long term. Thatmeans the number of middle-incomeearners (with annual incomes rang-ing from 6,000 to 30,000 dollars) willincrease by about 2 billion over thenext few decades to 3.5 billion people,according to Aspman.

“These new middle-income earnershave the potential to become perhapsthe strongest driving force in the globaleconomy,” he says.

The environment will be subject toincreasing strains.

“There will be a much greateremphasis on the need to develop cli-mate-smart alternatives and increaseenergy ef ciency in a number of areaslike housing, transportation and theproduction of goods,” Aspman says.“This may be one of the hottest growthareas over the next 30 to 40 years.”

2009 2010

BRAZIL -0.7 3.5

RUSSIA -7.5 1.5

INDIA 5.4 6.4

CHINA 8.5 9.0

GLOBALLY -1.1 3.1

THE IMF’S FORECAST AS OF FALL 2009 *

TREND

GROWTHDRIVERS OF TOMORROW

*Annual percentage change in GDP.



[ 4 *2009 ] SHAPE SCA *17

LARGER AND FEWER TRANSPORTS

SCA is continually working tomake its transportation more ef- cient.* Timber trucks drive the woodto train terminals more often forshipment to SCA plants on theBaltic coast.The trains get longerand heavier.* Shipments of paper, pulp andsolid wood products from north-ern Sweden to customers inEurope are done mainly by boat.

SCA tries to bring together vol-umes from several industries, evenfrom other companies. Goods sentto the Mediterranean are shippedwith goods from companies in theregion. On the way back, the shipsare lled with fr eight des tined forSweden.* SCA produces lightweight andbulky products like tissue, diapersand corrugated board in factoriesclose to its largest markets.

THE WORLD IS BECOMING more andmore open, and it’s easy to travel to anycorner we want. Our goods and productsare being transported quickly and ef -ciently from factory to consumer, whichare often in different countries.

Road transportation in the EU todayaccounts for 44 percent of all shippedgoods. The EU Commission estimatesthat the transport of goods will grow 50percent by the year 2020. Yet alreadytoday, transportation patterns are strain-ing the environment, and this trend can-not be sustained in the long run.

The EU Commission’s “Green Cor-ridors Initiative” is one way to lightenthe load on European roads. It involvescombining different methods of trans-portation and new routes to shipgoods. The aim is to minimize environ-mental impact and increase the EU’scompetitiveness, with goods shippedvia a concentration of ef cient high-ways, sea routes and railroads that all

complement one another.“In Austria and Switzerland, there’s anambition to have as much as possible of the heavy transit traf c between Italy andnorthern Europe, which goes throughthe two countries, go by rail,” says Ger-hard Troche, a researcher in transporta-tion and logistics at the Royal Instituteof Technology in Stockholm. “The chal-

TREND

TEXT: ANNIKA DANIELSSON PHOTO: AB VOLVO

Transportation is a heavy burden for the environment tobear. “Green corridors” – new combinations of transpor-tation routes and methods for shipping goods – will lowerthe environmental impact in EU countries.

lenge is to bring rail freight costs down sothat it’s as competitive as possible.”

Fruit and vegetables grown in south-ern Italy and consumed in northern Scan-dinavia are today transported across thewhole of Europe by truck. The vehiclesmake their way through sensitive natu-ral areas in the Alps, up through denselypopulated Germany and, for Sweden, toa terminal in Skåne in the south of thecountry, where Swedish food retailers

have many of their warehouses.“Our objective is to nd train serv-ice that can operate the entire way froma terminal in Italy to Sweden withoutstopping, without reloading and with-out adding or removing cars,” says Tro-che, who is a participant in one of theprojects that are part of the EU Com-mission’s initiative.

GREENCORRIDORS IN THE EU

FACTS: A green corridor involves:

• logistics solutions with a doc-umented lower impact on theenvironment and climate, anda high degree of safety, qualityand ef ciency

• optimal use of transportationmodes

• harmonized regulations• a pooling of national and inter-

national goods t raf c over rela-tively long shipping distances

• ef cient ly and strategicallyplaced reloading points

• innovative logistics solutions,such as information systems andtechnology

Source: The Gover nment Of cesof Sweden



Bitter pill for pharmacy chains

TREND

18 *SCA SHAPE [ 4 *2009 ]

Food retailersand pharmacies

are joining forcesin countries with

liberalized pharmacymarkets. But a newEU decision has

dashed some plansof major pharmacy

chains.

TEXT: JONAS REHNBERG PHOTO: ISTOCKPHOTO

egulations about whocan operate a phar-macy vary amongEuropean countries. InBritain, Norway, theNetherlands and Bel-

gium, the pharmacy market is com-pletely liberalized. Sweden is taking astep in the same direction as the statesells half of the country’s roughly 900pharmacies.

But in Germany, Italy, France andSpain, licenses to operate pharmaciesare given only to individual pharma-cists. The European Court of Jus-tice ruled in May ruling that Germanyand Italy could keep this restriction.

The decision upset the plans of majorchains such as the German compa-nies Celesio and Phoenix as well as theBritish group Alliance Boots and theDutch company Mediq. These chainsall aspire to become stronger in retailsales, where pro t margins are higherthan in their wholesale operations.

IT MIGHT SEEM ODD that the Euro-pean Court of Justice would approveregulations restricting competition, butthe decision stems from the special po-sition that pharmacies hold in manycountries.

“People put patient safety rst anddon’t want pharmacies owned by big

R



[ 4 *2009 ] SHAPE SCA *19

SCA AND PHARMACIES

Pharmacies are an important saleschannel for SCA’s products, espe-cially for incontinence protection,

where SCA’s TENA is a global leaderwith 26 percent of the world market.

Incontinence protection is a pre-scription product in many countries,a situation that favors individualpharmacists because it obliges peo-ple to go to a pharmacy. In a liberal-ized market, pharmacies risk losingthe opportunity of additional salesif customers get their prescriptions lled at the supermarket.

In a regulated market, where thebig chains are prevented from enter-ing the retail sector, they choose to

work more actively with hospitalsand nursing homes to increase theirpro t margins. This is an area whereSCA has traditionally had a strongposition.

“SCA is competitive in the insti-tutional sector with its clinicalexpertise and strong concepts likeTENA Services,” says Rickard Erics-son, customer development man-ager at SCA Health Care Europe.“We offer a combination of prod-ucts, services and skilled personnelin the form of consultative sales,which our competitors can’t offer.”

At the same time, SCA is workingin partnership with major wholesal-ers like Alliance Boots and Celesio

with the aim of nding the optimal

model for every type of market andcustomer segment.“The aim is to get as much from

the partnership as possible regard-less of whether it’s a regulatedor liberalized market,” says MikeHallerström, vice president SCAHealth Care Europe.

Regulated or free market? As faras SCA’s business is concerned,both offer advantages and disad-vantages. In a liberalized market,there will most likely be greaterprice pressure.

“On the other hand, it requires alot of resources to handle relationswith thousands of individual phar-macists,” Hallerström says.

In-store phar-macy in GreatBritain.

chains whose main motive is pro t,”says Rickard Ericsson, customer devel-opment manager at SCA Health CareEurope. “Independent pharmacies havealso established really strong tradeorganizations that lobby national agen-cies and at the EU level.”

EUROPE HAS SOME 160,000 phar-macies today, including about 20,000each in France, Italy and Spain. Mostof the pharmacies in those countriesare owned and operated by pharma-cists, many of whom have owned theirshops for decades. Pharmacies serve animportant social function. They do notsimply dispense medicine but also pro-vide advice and support when some-

one is sick. In southern European coun-tries, people go to the pharmacy muchmore frequently than in northern Eu-rope, sometimes several times a week.

Liberalization of markets often leadsto shifts in industry patterns. In Brit-ain, retail giants like Tesco and Asda

have set up in-store pharmacies thatoffer both prescription and over-the-counter products. In orderto compete, traditional phar-macies are selling more and

more non-prescription items.The large pharmaceuticalchains were surprised by the

EU court’s ruling.“We truly expected Germany to

open up,” says Marc van Gelder, CEOof Mediq, an international retail anddistribution company for pharmaceu-ticals and medical supplies that oper-ates pharmacies and supplies patientsin homecare situations.

HOWEVER, VAN GELDER believesthat increasing healthcare costs will ul-timately bring about liberalization.

“When the pharmacy market wasliberalized in the Netherlands in 1997,the per capita cost of pharmaceuticalsdecreased thanks to better ef ciencyand lower distribution costs,” he says.

Despite the ruling, liberalization of pharmacy markets and health servicesis set to continue for a host of reasons.

“Changing demographics across the

Western world, with an aging popu-lation and a growing strain on publichealthcare, all point to a growing inter-est in home treatment of less seriousailments,” van Gelder says.

For instance, Mediq delivers incon-tinence products directly to the con-sumer, in cooperation with healthcareprofessionals.

“The homecare channel is an emerg-ing channel that we believe will grow inimportance over the years to come,” hesays. “Incontinence products are par-ticularly suitable for home delivery, asmany people still nd it uncomforta-ble to buy incontinence products at thepharmacy or a retail store.”

Pharmaciesserve an im-portant socialfunction.



20 *SCA SHAPE [ 4 *2009 ]

TEXT: HENRIK EMILSON PHOTOS: JOHAN OLSSON AND BIRGITTA ALM

here’s plenty of ber. The for-est is literally full of it. Findingnew applications for cellu-lose ber is of great interest to

researchers who are turning the com-ponents of a tree into a surprising arrayof materials. The research and develop-ment company Innventia in Stockholmis working with the forest industry todevelop new applications and marketsfor wood ber.

“Traditionally, materials research hasfocused on the mechanical propertiesof materials,” says Mikael Lindström,a professor at Konstfack, Sweden’s Uni-versity College of Arts, Crafts andDesign and a researcher at Innventia.

“We’re working with wood as awhole, with the identity of the material– what is quality, why are some materi-als seen as cheap stuff, why is this mate-rial seen as natural,” he says, knockingon the wooden table in front of him.Lindström’s academic eld is the inter-disciplinary exchange of knowledge,with an emphasis on materials science.

HISTORICALLY, researchers in plasticand paper haven’t had much under-standing of each other’s elds. But bycombining knowledge about microme-chanics, plastic, modeling and cellulose ber chemistry, they’re producing com-pletely new materials.

“We’re working to understand therole of ber in plastic,” Lindström says.

“In paper, it’s the ber bond that’s thestrength. In a composite, with an arti- cial compound added to produce aconstruction material, it’s the contactsurface between the ber and the plas-tic that produces these properties.”

By looking at the ber in plasticfrom different perspectives, comparingdeciduous and coniferous wood bersin hard and soft plastics, and pullingand tearing the material, you can seehow different ber characteristics andstructures in the material can be trans-lated into characteristics in the nalmaterial. Today, a designer who wantsto make a chair out of paper with a loadcapacity of 100 kg (220 lbs) that canlater be thrown onto the compost pilecan get a suitable material.

“We shove all the characteristicsinto our ‘toolbox’ and then count back-ward, coming up with 40 percent birch ber, 20 percent unbleached spruceand a certain amount of plastic, as

W o

By combining wood bers with other materialsyou can make paper as strong as cast iron.Today’s research in wood bers sounds likesomething from science ction.

TECHNOLOGY

t

Nanocellulose, with its won-derful strength properties,can be used for things likecomposite materials andbarr ier lms but also as aviscosity agent in food andin applications for pharma-ceuticals and cosmetics.



[ 4 *2009 SHAPE SCA *21

well as choosing which manufacturingprocess is needed,” Lindström says.

Three properties of wood ber offeradvantages over glass ber or othermanufactured, synthetic ber, he says.For one thing, wood ber has a muchlower density.

“That makes it much lighter,” Lind-ström says. “In the automotive indus-try, and for all products that have to betransported, low weight is important.”

Another advantage of wood berover other organic bers such as linen

or hemp is that there is a steady supplyof wood ber in forests. Flax for linen

is harvested once a year and then has tobe stored. If the crop fails or the wea-ther is bad, the quality is affected.

UNLIKE COMPOSITE plastic materialssuch as carbon ber or glass ber, thereare many different qualities of wood -ber, and these can also be modi ed.

“Wood ber can be customizeddepending on the application,” Lind-ström says. “Glass, for instance, isvery inert, whereas cellulose ber has astructure that can be affected by chem-istry, both on the surface and in the berwall, in a way that suits the purpose.”

Researchers are leaving no stoneunturned in their work. At Innventia,they are taking lignin from the blackliquor, a by-product of paper pulp pro-duction, and studying how to makecarbon ber from it.

“Traditional carbon ber is reallyexpensive to make, and there’s a short-age in the world market,” Lindström

says. “Carbon ber is lighter andstronger than glass ber, while at the

same time it’s very strong. For instance,wind power turbine blades andextreme sports equipment are made of carbon ber. If we can make a cheapercarbon ber that’s renewable and notoil-based, there’s a big demand for it.”

Another area is nanocellulose ormicro brilated cellulose, the smallestcomponent of wood ber. The proper-ties of micro brilated cellulose comefrom its breadth relative to its length.The width is only 10 nanometers,about one one-thousandth the thick-ness of a human hair, and the lengthcan be several microns (millionths of a meter). Micro brilated cellulose isbecoming popular, with many eldsof application. It’s incredibly strong:among the products being developed isa nanopaper that’s as hard as cast iron– a nail can’t be driven through it.

“We want to make high-performancematerials from the forest that don’t haveto apologize for themselves.”

Lignin as powder.

Thread spunof lignin ber.

An important part ofbiore nery research con-cerns new products fromlignin, the substancethat holds cellulose -bers together. Lignin canalready be used as a bio-fuel, and it may also beused for chemicals andcarbon ber materia ls inthe future.

Composites of celluloseand PLA have a wealth ofpossible applications in anumber of industries, suchas automotive products,packaging and construc-tion. The fact that thematerial works well for fur-niture was demonstrated atthe Milan Furniture Fair in

April 2009 with the paper-based Parupu chair.

Wood ber canbe customizeddepending onthe application.



22 *SCA SHAPE [ 4 *2009 ]

the toiletProfilE

Can a simple toilet improve sanitation, conserveresources, produce bio-energy and in theprocess trigger a social revolution? The Sulabhtoilet has done all these things, and its inventor,Bindeshwar Pathak, is proud to be able to realizethe dream of Mahatma Gandhi.

In conferrIng the 2008 Stock-

holm Water Prize on Dr. BindeshwarPathak, the Stockholm InternationalWater Institute said his achievements“constitute one o the most amaz-ing examples o how one person canimpact the well-being o millions.” The66-year-old Indian social re ormer haschampioned a ordable and water-e -cient toilet systems used in millions o homes and public toilets in India andacross the globe.

While toilets may seem like a non-issue to Westerners, the grim reality isthat 2.4 billion people around the worldlack access to the even basic toilets andsanitation. Instead, they are con ned toopen-air de ecation, which pollutes theground and contributes to the spread o amoebas and disease. Women in par-ticular su er rom the lack o toilets,as many are orced to wait until darkbe ore they take the chance to relievethemselves in the open. In an attemptto spotlight the situation, the United

Nations named 2008 the International

Year o Sanitation.But Western-style fush toilets, sep-tic tanks and public sewer systemsare no solution or a majority o theworld’s inhabitants, Pathak argues.“The technology has to be a ordable,appropriate, indigenous and culturallyacceptable,” he says.

In developing the Sulabh toilet sys-tem in 1970, Pathak managed to meetall these criteria. Sulabh means “easy”in Hindi, and the concept is beauti-

ully simple. A toilet bowl is connectedto two sealed underground pits. Only1.2 liters o water are needed to fushit manually a ter use. When one pitis ull, the contents are le t to sit ortwo years while the other pit is used.A ter that time, the excreta are ree o pathogens and smell and may be han-dled without discom ort and usedas manure. The Sulabh system alsoreleases clean water rich in phosphorusand other ingredients that are impor-

tant constituents o organic manure. Inlarger complexes such as public toilets,the contents are used to produce odor-

ree biogas. The minimum cost o con-structing a Sulabh toilet is between 15and 20 US dollars.

Today, PaThak enjoys worldwiderecognition. He has been knighted inBritain and received the St. Francis

Award rom Pope John Paul II, amongmany other accolades. The Sulabh sys-tem was praised by the United NationsCenter or Human Settlements as a glo-bal “Urban Best Practice” at the HabitatII con erence in 1996. When he startedout back in the 1960s, however, Pathakmet with much skepticism and deri-sion in his homeland. Part o the reasonwas that his sanitation movement chal-lenged India’s deep-rooted caste system,which traditionally assigned unpleasantand degrading tasks like latrine clean-ing to the Dalit caste, ormerly knownas “untouchables.” The un ortunateindividuals born into this caste aced ali elong duty o collecting and cleaningpublic latrines. As a result, they wereseen as contaminated and shunned bythe rest o society. Dalits could not eatwith or even live near other Indians andthus earned the label o “scavengers”and “untouchables.”

Bindeshwar Pathak was born into

text: JonAS rEHnbErg PHoto: ScAnPix

hat chanthe world



[ 4 *2009 ] SHAPE SCA *23

BINDESHWARPATHAK BORN: 1943, to a Brahmin familyin Rampur Baghel, Bihar state,India.EDUCATION: M.A. degrees in

sociology and English.Ph.D. on “Liberation ofScavengers through Low-CostSanitation,” Patna University,Patna, Bihar.D. Litt. on “Eradication ofScavenging and EnvironmentalSanitation in India:A Sociological Study,” PatnaUniversity.MOTTO: “One lifetime, onemission.”



I MAY NOT BEBORN AGAIN, BUT

IF IT HAPPENSI WOULD LIKE

TO BE BORN INA FAMILY OF

SCAVENGERS, SOTHAT I MAY

RELIEVE THEM OFTHE INHUMAN,

UNHEALTHYAND HATEFULPRACTICE OF

CARRYINGNIGHT SOIL.

MAHATMA GANDHI

24 * SCA SHAPE [ 4 * 2009 ]

PROFILE



[ 4 *2009 ] SHAPE SCA *25

a family belonging to what is seen asIndia’s supreme caste, the Brahmins. Atage 25 he worked for the Gandhi Cen-tenary Celebrations Committee in theimpoverished state of Bihar. On beingexposed to the plight of the scaven-gers, he decided to join the committee’sBhangi-Mukti (scavengers’ libera-tion) cell and traveled all over the coun-try, visiting and living with scavengers,often a gruesome experience.

Pathak recalls an incident in whicha man was attacked by a raging bull.“The bystanders who had at rstrushed to save him suddenly haltedwhen they learned that the victim wasan untouchable,” he says. “The real-ization that a person born untoucha-

ble would die untouchable made mewant to ful ll the dream of MahatmaGandhi and bring these people into themainstream of society by nding themjobs other than scavenging.”

GANDHI, INDIA’S SPIRITUAL men-tor and the founding father of theworld’s largest democracy, workedhard to improve the situation of theuntouchables from a political perspec-tive. He also realized the importance of

sanitation and proclaimed that “clean-liness is next only to godliness.” Find-ing no affordable alternative during hisown lifetime, however, he resorted tosuggesting that human excreta shouldbe covered with soil.

“I studied the scavengers for myPh.D. and concluded that they were aspecial class united in their miseriesand social degradation,” Pathak says.“By saving them from their misery Ifelt we would save our national con-science.”

Aware that such a feat could notbe accomplished if it didn’t t in withHindu beliefs, he studied the scripturesclosely. “I concluded that scavenginghas no religious sanction,” he says. “Itis unproductive and revolting to man-ually clean excreta, and we are alsowasting material that may be pro tablyused to raise farm production and pro-duce energy.”

Saving the scavengers from their life-

long sentence, however, required a newkind of toilet, one that didn’t requiredaily emptying and cleaning.

Pathak’s family and upper-castepeers did not take kindly to his new-found commitment. His own grand-mother, for example, forced him toswallow toilet water and a sample of the river Ganges in an effort to dis-suade him from his sanitation crusade.“In those days, a Brahmin was notsupposed to be involved in sanitationor mix at all with the untouchables,”he says.

Despite his grandmother’s interven-tion, Pathak managed to create a pan-Indian network of 50,000 volunteers

and give bir th to the non-pro t SulabhSanitation Movement. “Our passionateobsession was that nobody should gooutside for defecation and every housein India should have a toilet.”

Pathak and his associates managedto convince urban planners and engi-neers that the Sulabh two-pit pour- ush toilet was an affordable, safe andhygienic system in the absence of sew-ers and septic tanks.

Following the rapid adoption of theSulabh system, more than 240 Indiantowns were freed of human scavengers as10 million bucket latrines were convertedto Sulabh toilets. The Sulabh movementalso built 3,200 community toilets withbath, laundry and urinal facilities oper-

ated on a pay-and-use basis.

TO THE UNTOUCHABLES, the grad-ual relief from the burden of cleaninglatrines meant that other jobs and newtraining had to be provided. To thisend, the Sulabh movement establisheda number of vocational training insti-tutes where “liberated” scavengers andtheir children are offered training in elds such as computer technology,typing and shorthand, electrical trades,

woodcraft, tailoring and driving.“Untouchables are now allowedto visit the temples and they are ableto sell food to houses where theyonce used to clean toilets,” Pathaksays. “Before, nobody would touchthese people. They are l iterally notuntouchable anymore. Who wouldhave believed such a thing could hap-pen in this country?”

When Mahatma Gandhi was assas-sinated in 1948, Pathak was ve yearsold. Gandhi’s grandson RajmohanGandhi visited the University of Illi-nois in January 2009 and said, “I amthe grandson of Mahatma Gandhi,but Dr. Pathak is the son of his soul.He has restored human rights and dig-nity to people engaged in the manualcleaning of human excreta which theycarried as head-load.”

In 1997 K.R. Narayanan, a memberof the Dalit caste, became the presidentof India.

THE TECHNOLOGYHAS TO BE AFFORD-ABLE, APPROPRIATE,AND CULTURALLYACCEPTABLE.

Pit in use.

Pit full.Sludge safefor removal.

The Sulabhtwo-pit pour- ush toilet.



SCA INSIDE

26 *SCA SHAPE [ 4 *2009 ]

LEAN THINKINGIn Toyota’s original philosophy, all non-value adding acti-vities are mapped:

TRANSPORT – where

products are movedunnecessarilyINVENTORY – stocks ofanything not included ina process

MOTION – people orequipment that move orrun more than necessaryto perform a given step

WAITING – for the next

step in productionOVERPRODUCTION – inexcess of demand

EXCESS PROCESSING –caused by bad equipmentor designDEFECTS – t he dif cultyof inspecting and elimi-nating defective products.

SCA“A TOYOTA”

MAKINGTEXT: SVEN LINDELL PHOTO: ISTOCKPHOTO

FOR SEVERAL YEARS now,SCA Packaging has been tak-ing actions to make productionin its factories more ef cient byusing the Lean model. Today,the process has made signi -cant advances in the 35 largestof SCA Packaging’s 200 facto-

ries in Europe.“We chose the largest ones rst to better maximize thebene ts from Lean,” says Vin-cent de Rooij, who heads theproject.

A natural rst step is to takea close look at production linesand the individual machines.

“There, it’s a question of cleaning and keeping things inorder to make the job smoother,”he says. “It can be as easy asmoving a table that doesn’t ll

any function but that employeeshave to take a few extra steps toget around and has to be dustedby cleaners. It can also meantaking away tools that were leftafter a particular job.”



[ 4 *2009 ] SHAPE SCA *27

HOW TO MAKELESS MORE Imagine running a lunch caf-

eteria. Customers choose fromthe same menu day in and dayout. You’ve gotten rid of every-thing in the kitchen that’s notneeded to make just the disheson the menu, and you’ve care-fully organized the process.Sharp knives here, whisks there,frying pan close at hand. Nounnecessary bending down

or rummaging in drawers. Therefrigerator has just the rawmaterials that are needed. As aresult, you can get to work andserve the right number of dishesthat are needed at the right time.

Does that sound obvious?Maybe it does. An organiza-tional expert would point outthat you’ve introduced what’scalled Lean production.

The Lean method began tobe used in Japan in the last fewdecades of the 20th century.

The automotive producer Toyo taled the way and is still the ma instandard. Nowadays, Lean pro-duction is a tried and testedmethod for reducing waste,eliminating steps that interferewith the ow of produc tion andmaximizing customer value.

Implementing the Lean proc-ess is based on common senseand logic.

“The rst th ing you do haveto do, naturally, is to deter-mine exactly what your custom-ers’ needs are – after all, that ’swhat’s going to guide yourimprovement efforts,” says Vin-cent de Rooij, who heads upthe Lean implementation pro-gramme at SCA Packaging.

The objective is to deliver theright amount at the right time.Not too late, but not too earlyeither.

The other key part involves adaptingthe infrastructure used in production,from execution and control of opera-tions to governance and planning.

“Last but not least , employeesshould be allowed to in uence thechange from the very star t,” de Rooijsays. “In that way, people increasetheir motivation and the feeling of sharing responsibility.”

AT THE FACTORIES where the Leanmodel was introduced, there is now aperformance board at every machine.

“The entries on the boards makeit clear what’s expected of each team,

and employees can see for themselveshow they’re performing,” he says.

Perhaps the greatest challenge arisesonce the changes have been imple-mented. It’s then a question of mak-ing sure that the process does not onceagain stagnate into a routine. So regu-lar inspections are carried out to main-tain the new working method.

Vincent de Rooij is very satis ed sofar. The more ef cient process meansthat costs are cut and the resourcesfreed up are used to raise quality.Because customers’ needs are nowbeing met even better, the market posi-tion is strengthened.



Norwegianslike Libresse

28 *SCA SHAPE [ 4 *2009 ]

The new Libresse tampons, whichwere introduced on the Norwegian

market in May, reached a marketshare of 15 percent after only twomonths in stores. Consumer testscon rmed that 86 percent of allwomen who participated in testssaid they would consider switchingtheir tampon brand after havingtested Libresse. Even Libresse tow-els and liners have a strong numberone position in Norway, with a mar-ket share of over 50 percent.

SCA has launched adult inconti-nence care products speci callydesigned for nighttime use.

France, Belgium and the UK arethe rst European markets to launchthe new TENA Lady Night range.Consumers can choose between twoproducts: TENA Lady Night Maxi andTENA Lady Night Mini *.

“TENA has taken its inspirationfrom traditional feminine hygiene,where the night-time sanitary towelsegment is divided equally betweenthicker maxi pads and slimmer ultrathin liners,” says Frédéric Morot ofSCA in France. The launch will conti-nue in other European retail marketsin 2010.* Not available in UK

Restroom secretsREVEALED

SCA has partnered with theTV home improvement series“Designing Spaces” to un-cover the mysteries of publicwashroom sanitation and sus-tainability. Most people don’tknow what to look for in orderto judge how clean or green awashroom is.

“This partnership with ‘De-signing Spaces’ showcases

SCA’s commitment to improv-ing hygiene and our environ-mental footprint levels in publicwashrooms around the world,”says Cindy Stilp at SCA Tissuein North America.

The half-hour-long washroomprogram made with SCA aired inSeptember 2009 on the US cablenetworks WE and TLC and cannow be viewed on YouTube.

INSPIRED BYTRADITION

Design a lean, smart, “fat-free”packaging solution for any prod-

uct that can be bought at retailtoday, combining innovation withsustainability and using no morepackaging than necessary. That’sthis year’s challenge for SCA-spon-sored Design Challenge, a talentcompetition for non-professionalEuropean designers, students anddesign schools. The winner gets upto 3,000 euros and an internship atSCA Packaging.

This year’s contest focuses onsimple and sustainable packag-

ing design. Submissions for DesignChallenge ‘09 will be accepteduntil January 31, 2010.

Some 500 students from 23European countries entered thecompetition last year with the taskof designing an effective and ap-pealing packaging concept forchocolate.

Read more and submit at www.scapackaging.com

Let the best packaging win



SCA INSIDE

[ 4 *2009 ] SHAPE SCA *29

SCA’s paper mill in Ortviken,Sweden, has received one of the

most prestigious prizes in the pa-per industry, Pulp & Paper Interna-tional magazine’s EnvironmentalStrategy of the Year Award, in themill category.

The award is given to “the millthat has gone the extra mile andabove the call of duty to implementenvironmental solutions,” accord-ing to the magazine.

The judges looked for a showcasemill, taking into consideration all

the elements of its impact on theenvironment, including sourcing of

raw material, water and energy use,and air and water emissions.

“It is extremely important andcompletely natural for us to activelywork with the environmental as-pects as part of our strategy,” saysKristina Enander, mill manager atSCA Ortviken. “We all have a re-sponsibility for the environmentand we also have a responsibilitytoward our customers to offer envi-ronmentally friendly products.”

Environmenal thinkingcharacterizes EdetSoft Eco and EdetCuisine Eco, madefrom 100 percentrecovered paper.The paper is produced at SCA’s millin Lilla Edet, north of Gothenburg,Sweden, close by retailers in bothSweden and Norway. Smaller sock-

ets and more paper on the rollsalso mean less air in the transports,more ef cient packing and lowercarbon dioxide emissions duringtransportation, according to SCA.

The Edet Eco-range package con-sists entirely of renewable corn-based bioplastics. The products areeco-labeled with the Swan, the of- cial environmental label in Nordiccountries.

MILL WINS AWARD

F Lighting a camp re in bad

weather using damp wood iswell known for being tricky. Theportable replace “Camp re 2Go” is a ve-kilogram box includ-ing several smart solutions thatmake sure the wood will burneasily regardless of the weather.The product was one of the ninewinning products at the yearlyNordic packaging competitionScanstar. Camp re 2 Go was de-

veloped at the Design Center inTampere, Finland, in a joint effortof the customer, Valmisnuotio Oy,and SCA product developmentand sales teams. The idea for theproduct came from Valmisnuotio,which wanted to create a brandout of Finnish rewood and usecorrugated board as packagingmaterial. The rewood packedin Camp re 2 Go consists of air-dried Finnish birch.

ECO-TISSUE HITS

SCANDINAVIANMARKETS



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WHEN SWEDEN FAILED TO qualifyfor the World Cup in soccer this year,national team manager Lars Lagerbäckdid as many others have done in recentyears: he quit the team and headed off tothe forest.

After Prime Minister Göran Perssonresigned as team manager of Sweden’sSocial Democrats a couple of yearsearlier, he bought 190 acres of forest in

Småland in central Sweden.Lars Lagerbäck is doing Göran Pers-son one better. The family farm in Ovan-sjö where he retreated has 733 acres of forest. When he steps out every morningin his perennial sweat suit and surveys hisrealm, he can see a woodland expanseequal to more than 400 soccer elds.

It’s not just sports stars and politi-cians who are gaining new energy andinspiration from the woods. Headingoff to the forest is the big new trend inpopular culture.

This year has seen the release of the lms Burrowing and Antichrist, wherethe main characters seek out natureand the forest to nd greater resonancein their spiritual lives.

It’s as if people are hoping that theforest will bring out an inner truth, thatby walking through the woods they canget rid of their stress and lay bare theirannual rings so at last they can say tothemselves: “This is me.”

Pop music is showing the same trend.On one CD cover after another, musi-cians stand leaning against a trunk orlooking up into the treetops.

The trend is reminiscent of when theBeatles split up in the late 1960s. JohnLennon, Paul McCartney and GeorgeHarrison all marked their new starts asartists by taking cover photos for theirdebut solo albums in the great outdoors.

Brothers of End, the new Swedishtrio that’s been getting a lot of atten-tion lately, seems to be in uenced bothmusically and conceptually by the ex-Beatles’ early solo albums.

The cover of the group’s debut albumThe End is so woods-oriented it mighthave come from the Swedish Federationof Forest Owners’ monthly mag-azine. It also seems appropriate thatone member of the band is an environ-mental journalist.

1. Hat ,Swedteam Gore-Tex SEK 5902. Jacket , Barbour, Keeperwear jacket

SEK 1,4903. Shirt , Barbour Tattersall SEK 7954. Tie , Purdey silk SEK 1,0405. Trouses , Suede Glengarnock SEK 1,1906. Boots , Meindl Kiruna, SEK 4,1907. Scarf , John Partridge SEK 4508. Belt , Pinewood SEK 2,5099. Socks , Pennine wool SEK 350

10. Jacket , quilted, Glengarnoch SEK 3,99011. Shirt , Chevalier Wyoming SEK 69512. Cardigan , Barbour SEK 1,39013. Knickers , men's, Stuhlmann SEK 3,89014. Gloves , lamb, Lederweiss SEK 1,12515. Thermos , leather, SEK 1,49516. Protective helmet, SEK 19717. Earmuffs, SEK 30418. Chainsaw, SEK 7,315

✁ CLIP AND TAKE TO THE STORE

fo EVERYONE’S OFF TO THE

TEXT: JAN GRADVALL STYLIST: THERESE KÄRRMAN

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30 *SCA SHAPE [ 4 *2009 ]



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[ 4 *2009 ] SHAPE SCA *31

Dress like the

king of the forest



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OR LOOK AT BON IVER. Thisgroup’s leader, the American musicianJustin Vernon, wrote the songs for hisepoch-de ning album For Emma, For-

ever Ago in a remote cabin in the darkwoods of his native Wisconsin.

With his wild woodsman beard andcheckered shirts, Vernon appears inconcerts looking as if he just steppedout of the forest.

The trend of looking like a lumber-jack has become so big that you nowsee television celebrities on morningTV shows dressed in checkered shirtsand ve-day beards. The same ruggedlook can also be seen on women.

Clothing styles have followed thepath of cars. We’ve long been used toseeing city centers full of gas-guzzlingSUVs, vehicles designed to drive downunplowed mountain roads in extremeweather conditions. Now we’re dress-ing like woodsmen even though we’reonly off to buy a latte downtown.

Why are we all suddenly looking tothe forest?

There are several explanations forthe forest’s power of attraction, trendanalyst Magnus Lindkvist says in his

new book Everything We Know IsWrong: The Invisible Trends ThatShape Business, Society and Life.

“The forest has always been a sym-

bol of rebirth,” Lindkvist says. “It’strue both artistically and spiritually.The forest is a place where people goto begin again. And the need to beginagain is always especially great after aneconomic crisis.

“Many people have also begun touse the forest and nature as a source of inspiration. Biomimicry is a conceptthat’s getting a lot of attention. Bio-mimicry involves people studying thebest ideas of nature and then imitating

them. There’s almost nothing in tech-nology or science that nature doesn’talready have a better solution for.”

TECHNOLOGY IS ACTUALLY onefactor driving people’s dreams of theforest, whether it entails moving there,buying woodland or simply hikingthrough the trees.

Wi- and social media mean thatpeople can have as close contact withtheir friends in the middle of a spruceforest as in a city. Today, people usingtheir iPhones can go out with a naturegroup without missing the latest onTwitter or Facebook.

For widely traveled urban kids, theforest is an exotic place that remainsto be explored. Nobody’s impressedanymore by someone who just got off the plane from New York, London orBerlin. But sit down in a bar and startremoving pine needles from your jacketand people begin to get interested.

✁

CLIP AND TAKE TO THE STORE

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1. Hat , John Partridge SEK 5902. Vest , Barbour Ladies Keeperwear

SEK 1, 3903. Cardigan , Lana Salzburg SEK 1,4504. Shirt , Chevalier SEK 5955. Knickers , moleskinn, Barbour SEK 1,3906. Boots , Le Chameau, SEK 1,3507. Gloves, Woodline, Trigger SEK 4958. Gaiters , Woodline, SEK 4959. Muff , lamb, Lederweiss SEK 975

10. Scarf , John Partridge SEK 45011. Jacket , Beretta KVJ Gore-Tex

SEK 4, 90012. Vest , Beretta tweed SEK 3,99013. Shirt , Hammerschmid SEK 545 r14. Knickers , Beretta tweed SEK 1,99015. Binoculars , Zeiss 10x30, SEK 7,35016. Axe , Gränsfors, SEK 55017. Knife , handmade, SEK 1,49518. Backpack , Fauna handmade, SEK 2,900

we’re only off to buy a latte downtown.

Now we’re dressing like woodsmen even though

Thank you Widforss and Fredells in Stock-holm for lending us clothes and stuff. [ 4 *2009 ] SHAPE SCA *33



ECONOMY

Strong new report from SCA

SCA HAS SURPRISED the marketwith strong earnings reports this year.The third quarter was no exception.Pro t before tax of SEK 2 .2 billionwas 18 percent higher than analystshad forecast. For the rst nine months,pro t was SEK 5.7 billion, compared

with SEK 5.1 billion last year. Salesof about SEK 83 billion were slightlymore than in 2008.

Tissue, which has not been affectedby the economic downturn to any sig-ni cant extent, has been the strongestgenerator of pro ts this year. About 40percent of operating pro t for the rstnine months, SEK 7.1 billion, camefrom Tissue, helped by a better productmix and synergy effects from acquisi-tions in the European tissue operations.

In the third quarter, its pro t was 74percent higher than a year earlier.Personal Care also managed to

increase its pro t (up 10 percent fromthe third quarter of 2008), in partthrough higher pro t margins forbaby diapers and a better product mix.Its operating pro t of SEK 2.3 bil-lion for the January-September periodaccounted for 31 percent of SCA’s pro t.

IN FOREST PRODUCTS , the pictureis more mixed. Overall, things lookbetter than last year, with operatingpro t of SEK 1.8 billion for the rstnine months, an increase of 9 percent.In the third quarter, the increase was28 percent from a year earlier. Hiddenbehind these gures is a sharp impro-vement in pro t for publication papers,through a combination of higher pri-ces, lower raw material costs and im-

provements in productivity.Packaging is the area most affectedby the economic downturn. Packaging

accounts for one-fourth of the Group’ssales but represented only 4 percentof operating pro t for the rst ninemonths. Operating pro t fell 46 percentin the third quarter as a result of lowerprices and declining volumes. A savingsprogram is under way which will save

SEK 1 billion on an annual basis.SCA's focus on improving cash ow

and strengthening its balance sheet hasyielded good results. A number of meas-ures have been implemented to increasecash ow. Working capital has decreasedlargely through lower inventory levels.This, together with a higher operatingsurplus and lower investments, amongother factors, has improved cash owfrom operating activities by SEK 6.8 bil-lion compared with last year to SEK 8.9

billion for the rst nine months. SCA’snet debt has fallen by SEK 5 billion sincethe beginning of the year.

SCA PROFITINCREASES

...AND THE BIGGESTPART OF PROFIT

TISSUE HAS THEBIGGEST TURNOVER...Share of sales, Jan-Sept Pro t before tax, MSEKShare of operating pro t, Jan-Sept

SCA managed once again to beat market expectations in the third quarter with a pro tof SEK 2.2 billion before tax. That was 18 percent higher than analysts’ average expec-tation and 53 percent better than in the same period in 2008.TEXT: GÖRAN LIND

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Q4 / 2007

Q1 /2008

Q2 / 2008

Q3 /2008

Q4 /2008

Q1 / 2009

ForestProducts

15%

Forest

Products25%

Personal Care23%

Tissue40%

Packaging25% Packaging

4%

Tissue37%

Personal Care31%

2,342

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1,703

1,438

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2,014*

2,199**

Q2/ 2009

Q3 / 2009

* Excl. restructuring costs -439 MSEK** Excl. restructuring costs -387 MSEK

34 *SCA SHAPE [ 4 *2009 ]

sca magazine shape 4 2009

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