SCA is continuing its progress towards becoming a full-service packaging supplier. This means that SCA operates throughout the entire packaging chain including design, packaging manufacture and improving customer logistics. The North American packaging operations were sold in 2007 and SCA now focuses on the more mature markets in Europe, as well as on the emerging markets in Eastern Europe and China.
Increased value-added for SCA and its customers
SCA is one of Europe’s leading suppliers of packaging for a number of different applications. These include consumer and point-of sale packaging, shelf-ready packaging, customized protective packaging and transport packaging made from corrugated board as well as a full service concept aimed at manufacturers, distributors and retailers. The customer base includes well-known, international
companies such as Nestlé, Arla Foods, Hewlett Packard, Nokia, Procter & Gamble, Unilever, and Husqvarna as well as packaging solutions for SCA’s hygiene business.
Much of SCA’s packaging is used in retail and is on display to end-consumers. The packaging is therefore a key communicator of product content and plays a decisive role in promoting the product to end-consumers. Based on its comprehensive knowledge of packaging design, consumer behaviour and the needs of retailers, SCA focuses on three value offerings for its customers’ entire packaging chain, where cooperation also includes the customer’s marketing and sales organization.
- Packaging is a key part of market communication and must have an
attractive design and high-quality printing.
- Cost-effective transport requires optimization of packaging space based on logistic principles with an optimal strength-to-weight ratio.
- During transport the packaging must provide effective protection against shocks, vibrations and temperature changes.
Packaging operations are undergoing rapid development. Significant development initiatives, efficiency enhancements and investments are under way to increase growth, improve profitability and strengthen leading positions. The strategic priorities within Packaging are:
- To increase the proportion of complete packaging solutions in close cooperation with customers.
- To lead development in the packaging market with innovations and product
development.
- To expand in the fast-growing markets in Eastern Europe as well as in China.
- To continue to push for continuous productivity improvements.
Packaging design leader
SCA supports its customers by providing complete packaging solutions from concept to consumer. The aim is to improve functionality, simplify and streamline transport, packing and handling of goods, provide cost-effective design, create attractive opportunities for product display and strengthen brand recognition. With ten Design Centres in Europe and Asia, SCA has a unique strategic expertise and competitiveness that was strengthened in 2006 with the inauguration of an Innovation Centre in Brussels, Belgium. New packaging solutions are developed in SCA’s Design Centres in close cooperation with customers. New technologies, material solutions and design tools are tested at the centres.
New markets
Purpose-designed packaging is a prerequisite for the global economy’s extensive trade and transport of goods. The packaging market grows hand-in-hand with industrial production. In order to take advantage of growth in new regions, SCA makes significant investments in the fast-growing markets in Eastern Europe as well as in China and currently has some 20 plants in Asia and around ten production units in Eastern Europe. The focus is on high-value segments such as consumer electronics, car parts and high-quality consumer packaging where SCA has achieved a leading position. A new Design Centre was inaugurated in China during the year that works with the same concept as in Europe.
Efficient production
Continual improvements and efficiency enhancements in production are important strategic cornerstones within Packaging. The major cost-cutting programme, which was launched in 2005, was successfully completed during the year. Efficiency enhancement work will continue in the future in order to ensure competitive production. This involves the entire supply chain from raw material to customers, including a review of suppliers and purchasing, the removal of bottlenecks and a reduction of capital tied up in machinery, goods and flows. Education and training are helping employees to focus on cost efficiency and productivity improvements. Ongoing investments are also being made in the production plants in order to further consolidate positions and be able to offer customers high quality
products.