Operations and structure

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 Away-from-Home tissue (AfH tissue). Forest Products includes paper for packaging and print, pulp, solid-wood products and renewable energy.

While 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.

Organization

SCA has seven business units. After a reorganization on January 1, 2016, the units are as follows:

• SCA Incontinence Care, which offers incontinence products in Europe and North America.
• SCA Consumer Goods, which offers consumer goods in Europe.
• SCA Latin America, which offers personal care products and tissue.
• SCA MEIA (the Middle East, India and Africa), which offers personal care products and tissue.
• SCA Asia Pacific, which offers personal care products and tissue.
• SCA AfH Professional Hygiene, which offers AfH tissue in Europe and North America.
• SCA Forest Products, which offers paper for packaging and print, pulp, solid-wood products and renewable energy.

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 and technology in Tissue.
• Global Hygiene Supply Personal Care (GHS-PC) with global responsibility for sourcing, production 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. In addition there is also the unit Logistics.

Events during the year

SCA decided to invest in a new production facility for incontinence products in Brazil.

To further intensify the focus on the Group’s two main operations, SCA decided to initiate a dividing of the Group into two divisions: a Hygiene division and a Forest Products division.

SCA decided to further enhance the hygiene organization. The change took effect on January 1, 2016.

SCA decided to invest in increased capacity for pulp production in Sweden.

SCA decided to make a public bid on Wausau Paper Corp., one of the largest AfH tissue companies in the North American market. The transaction was completed on January 21, 2016.

SCA decided to divest its business in Southeast Asia, Taiwan and South Korea for integration with Vinda. SCA is the majority shareholder in Vinda, one of China’s largest hygiene companies.

SCA decided to close down a newsprint machine at the Ortviken paper mill in Sweden.

Organization