Operations and structure
SCA is a leading global hygiene and forest products company that sustainably develops, produces, markets and sells personal care, tissue and forest products.
SCA divides and reports its operations according to three business areas – Personal Care, Tissue and Forest Products. Personal Care includes incontinence products, baby diapers and feminine care products. Tissue includes consumer tissue and AfH tissue. Forest Products includes solid-wood products, pulp, kraftliner, publication papers, pellets and other biofuels and district heating and green electricity.
Europe is SCA’s largest market. The Group also holds strong positions in North America, Latin America and Asia. Expansion takes place through both organic growth and acquisitions, primarily within Personal Care and Tissue.
SCA is Europe’s largest private forest owner, with 2.6 million hectares of forest land, which covers approximately half of the Group’s timber supply and enables efficient raw material integration and effective cost control.
SCA has the following five business units:
- SCA Incontinence Care, which offers incontinence products in Europe and North America.
- SCA Consumer Goods, which offers personal care products and tissue in Europe, the Middle East and Africa.
- SCA Latin America, which offers personal care products and tissue in Latin America.
- SCA AfH Professional Hygiene, which offers AfH tissue in Europe and North America.
- SCA Forest Products, which offers solid-wood products, pulp, kraftliner, publication papers, pellets and other biofuels and district heating and green electricity.
In addition to the business units, SCA has established three global units:
- Global Hygiene Category (GHC), with global responsibility for customer and consumer brands and innovation in the hygiene area.
- Global Hygiene Supply Tissue (GHS-T), with global responsibility for sourcing, production, logistics and technology in Tissue.
- Global Hygiene Supply Personal Care (GHS-PC), with global responsibility for sourcing, production, logistics and technology in Personal Care.
The organization has six Group functions: Finance, Human Resources, Sustainability, Legal Affairs, Communications, and Strategy and Business Development. Strategy and Business Development is also responsible for the Group’s Global Business Services (GBS) and IT Services. GBS has global responsibility for providing professional and transactional services in finance, HR administrative support, organization of master data, and office-related support and service to all units within SCA.
* The Strategy and Business Development Group function is also responsible for Global Business Services (GBS) and IT Services. GBS has global responsibility for providing professional and transactional services in finance, HR administrative support, organization of master data, and office-related support and service to all units within SCA.
Events during the year
Initiated work in order to be able to propose to the 2017 Annual General Meeting to decide on a split of the Svenska Cellulosa Aktiebolaget SCA Group into two listed companies: hygiene and forest products.
SCA entered into an agreement to acquire BSN medical, a leading medical solutions company, which develops, manufactures, markets and sells products within the areas of wound care, compression therapy and orthopedics. The purchase price for the shares is EUR 1,400m and takeover of net debt approximately EUR 1,340m1). The completion of the transaction is subject to customary regulatory approvals and closing is expected to take place during the second quarter 2017.
The acquisition of Wausau Paper Corp., a leading North American AfH tissue company, was completed. Following the acquisition, SCA is the second largest player in the AfH tissue segment in the North American market.
The divestment of the hygiene business in Southeast Asia, Taiwan and South Korea for integration into Vinda was closed. SCA is the majority shareholder in Vinda, one of China’s largest hygiene companies.
A new production facility for incontinence products in Brazil was inaugurated.
Decision was taken on restructuring measures in tissue production in France and Spain.
The baby diaper business in Mexico was closed as part of work to address weak market positions with inadequate profitability.
SCA decided to discontinue its hygiene business in India as a result of its conclusion that profitability cannot be achieved within a reasonable time frame. Discontinuation will take place in the first quarter of 2017.
1) Estimated as of December 31, 2016.