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Name: |
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SCA Packaging
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| Founded: |
The Swedish SCA Group (Svenska Cellulosa Aktiebolaget) was created in 1929 as a result of several mergers of Swedish forestry companies. In 1991 SCA Packaging is officially installed as a SCA Business Group.
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| Head office: |
Culliganlaan 1D, BE-1831 Diegem, Belgium.
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| Employees: |
24,100 worldwide (Europe and Asia).
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| Locations: |
Some 300 in 30 countries (Europe and Asia).
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| Business: |
Transport, consumer, display & promotional packaging. Customised protective packaging, industrial, temperature controlled and heavy duty packaging.
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| Net sales: |
Euro 3.664 billion in 2006.
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| Customers: |
Spread over more than 50 countries worldwide.
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Stronger demand, better balance
Earnings rose in 2006 as a result of an improved market situation combined with the positive effects of SCA’s efficiency programme. Strong demand coupled with a better balance on the markets allowed the price of corrugated board and containerboard to be increased. SCA’s Asian operations enjoyed a rise in sales of almost 20%.
Net sales in 2006 increased by 3% to EUR 3.6 billion compared to 2005. Operating profit increased by 17% to EUR 224 million. Price increases for containerboard in Europe were carried out on several occasions and were followed by gradual increases in the price of corrugated board packaging. The year-end prices for containerboard and corrugated board packaging were higher than at the beginning of the year by 20–30% and 6% respectively.
The expansion in China was intensified in 2006 with an important investment in Suzhou, where SCA Packaging established a new facility. Towards the end of the year SCA Packaging acquired the remaining 7.5% of SCA Packaging Asia and now owns 100% of the Asian operation.
Lower costs
The efficiency programme progressed according to plan. Production was discontinued at three containerboard mills with a combined capacity of 385,000 tonnes. Several corrugated board facilities in Europe were closed and production was shifted to fewer and more efficient plants. The efficiency programme will be concluded in the first half of 2007
Becoming a global and full-service packaging provider
The long-term transition of the Packaging business area into a full-service supplier of customer and consumer-oriented packaging solutions was intensified during the year. Several important investments were made in a number of European facilities in order to expand the product offering. These include increasing the capacity in Eastern and Western Europe as well as Russia
SCA Packaging also acquired the remaining 75% of the UK company Cool Logistics which manufactures temperature-controlled packaging. A decision was taken in 2006 to open a new packaging factory in Romania. In 2006 the marketing and sales organization was reorganized in order to better communicate the value of the packaging solutions.
Increased production of liner with low grammage
The reconstructed testliner machine in Aschaffenburg, Germany, was made fully operational in 2006. This increased SCA Packaging’s capacity in low-grammage containerboard.
Another significant investment was a new recovery boiler at the kraftliner mill in Obbola, Sweden.