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

N EW SPRIN
L• G

TO SPECIA

ST
YLE • FOR
HO

E
ST
FASHION • P

THE TOILET TURNING

THAT CHANGES EU TRANSPORT
THE WORLD GREENER
WOOD FIBER NEW MEDICINE
STRAIGHT FOR THE
OUT OF SCIENCE PHARMACIST
FICTION

Women NEW WAGE EARNERS

SCA GOES LEAN

EN01_omslag_987.indd 1
TAKE CHARGE
★ STRONG REPORT ★ VALUED FORESTS
2009-11-24 19:30:23
 Contents N 4 2009
As women worldwide
increasingly enter the
workforce and earn their
own income, the business
opportunities are huge
for companies. That is, if
they can provide products
and services that make
women's lives easier.

6
POTENTIAL IS GREAT
FOR THOSE WHO
TAILOR THEIR PRODUCT OFFERING TO

WOMEN
EN02-03_innehall_983.indd 2 2009-11-24 20:44:58
 04 SHAPE UP
Buildings that withstand earthquakes, what
women can’t talk about, and SCA School – read
more on the Shape up pages.

06 SHAPE COVER
Women worldwide want products and services that
save time. Companies that understand this will be
the winners as female purchasing power grows.

06 16 TREND
A new EU directive upsets plans of Europe’s big
pharmacists. Read also how transport will become
more eco-friendly in the Trend pages.

21 PROFILE
Bindeshwar Pathak’s toilet has not only helped the
poor improve their hygiene, it has abolished what
was once an oppressed occupation in India.

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

16 26 SCA INSIDE
Toyota does it. So does SCA. Lean production is

26 the way to keep production in shape. Read also

about a campfire you can take with you anywhere.

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

34 ECONOMY
21 SCA delivered a quarterly report that surpassed
almost all expectations.

SCA Shape is a magazine from SCA, primarily geared toward share- Publisher Bodil Eriksson Managing editor Anna Selberg
holders and analysts, but also for journalists, opinion leaders and oth- Editorial Anna Selberg, SCA; Anna Gullers and Göran Lind,
ers interested in SCA's business and development. Shape is published Appelberg Design Tone Knibestöl och Maria Lindén, Appelberg
four times a years. The next issue is due in March 2010. Printer Sörmlands Grafiska AB, Katrineholm
Address SCA, Corporate Communications, Box 7827, 103 97 Cover photo: Pysse Holmberg
Stockholm, Sweden Telephone +46 8 7885100 Fax +46 8 6788130
SCA Shape is published in Swedish and English. The contents are printed on GraphoCote 80 gram from SCA Forest Products. Reproduction only by
permission of SCA Corporate Communications. The opinions expressed herein are those of the authors or persons interviewed and do not necessarily
reflect the views of the editors or SCA. You can subscribe to SCA Shape or read it as a pdf at www.sca.com.

[ 4*2009] SHAPE SCA *3

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 Look wh o’s
SHAPE UP
not talking
Toilet bags to the rescue
The shortage of toilets causes major
problems in the third world’s enormous
slum cities. A new Swedish invention
can solve the problem. The Peepoo
bag, as it is called, is made of biode-
gradable plastic with a thin layer of
urea on the inside. The urea starts the
breakdown process, raises the PH value
and kills bacteria, viruses and parasites
that 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
4*SCA SHAPE [ 4*2009]
EN04-05_shape_up.indd 4
WHEN IT COMES to a certain sen-
sitive health topic, women’s lips are
sealed, according to a new “Bladder
Talk” survey of 780 women in North
America aged 35 and older.
One woman in four suffers from
bladder weakness, but nearly 40 per-
cent of women with symptoms have
never discussed their condition with
anyone. Half the women surveyed (51
percent) feel that bladder weakness
has a strong impact on their daily lives.
More than a third (37 percent) say they
would live differently without bladder
weakness. Even with the impact it has
on their lives, 43 percent of the respon-
dents have never done anything about
their symptoms, and only 17 percent
carbon dioxide, water and earth after a
year at the most,” explains Camilla Wir-
seen, an architect and project leader at
the company Peepoople, which has taken
out a patent on the bag.
The annual cost of the bag for one
person is less than $12. The idea is to
use it in the slum cities of the third
world. It has been tested on a larger
scale in Nairobi’s slum city of Kibera.
The inventor of the bag is Anders
Wilhelmson, an architect and profes-
sor at the Royal Institute of Technology’s
School of Architecture in Stockholm.
have researched the condition for more
information. “Just because women
don’t like to talk about bladder control
issues doesn’t mean the condition is go-
ing away,” says Ankie Cedergren-Borg
at SCA Personal Care North America.
“We believe that a significant part of
our responsibility to our consumers is
to give them the resources to under-
stand their condition and solutions to
improve the quality of their everyday
life. We also want to spark discussions
around the condition so it is brought
out in the open.”
The survey was conducted by Har-
ris Interactive, sponsored by TENA,
SCA’s brand for incontinence care
products.
AMERICA RECYCLES
Recycling gets its own day in the US
dedicated to encourage Americans
to recycle and to buy recycled prod-
ucts. Nearly 750 local organizers have
registered almost 2,400 events online
at americarecyclesday.org. Educational
messages, drop-off programs and
electronics collections can be found all
over the country.
“By celebrating America Recycles
Day we are spreading the word that we
all have a responsibility to support re-
cycling through our dai-
ly choices and actions,
including purchasing
products manufac-
tured from recycled
materials,” says Mat-
thew M. McKenna, pres-
ident and CEO of Keep
America Beautiful, one
of the organizations be-
hind the event.
2009-11-25 09:45:41
 HOW DO YOU VALUE A TREE?
TEXT: CARINA GERKEN CHRISTIANSEN
It sounds almost like a philo-
sophical question. What is the
value of a tree?
SCA is the largest private owner
of forests in Europe with 2.6 mil-
lion hectares (6.4 million acres) of
forestland. A hectare is 100 x 100
meters. A soccer field is 68 x 105
meters, which is 0.7 hectares (1.7
acres). So SCA owns forestland
equal to about three million soc-
cer fields.
Forest analysts traditionally
value forests based on their supply
of timber.
When trees are felled and placed
on a trailer truck to the sawmill
or paper plant, they are definitely
product. When they are still in the
forest, they are at the same time
product and production because
they are continuously growing and
producing more timber.
For that reason, people usually
talk about the productivity value
of the forest. That is the total of the
WOOD HOUSE
SURVIVES QUAKE
Wooden buildings survive an earth-
quake better than many buildings made
of other materials. That was the finding
of a study conducted by the Italian
wood research institute IVALSA, the
trade publication Skog och Industri
(“Forest and Industry”) reports.
To withstand an earthquake, con-
structions must be flexible and energy-
absorbent, which wooden buildings are
because of bolted and nailed joints. In
the experiment, a seven-story building
made of wood was subjected to forces
equivalent to 7.2 on the Richter scale.
The wooden construction held.
EN04-05_shape_up.indd 5
SC A SCH O O L
timber supply that exists right now
plus the timber that will be avail-
able for felling in the future.
Forests have also taken on a
new role, one they had in the past
as well. As biofuel starts to re-
place oil and coal, more parts of
trees can be used for energy.
Still, forests are not just trees
and finance. That complicates
things for forest analysts. Many
people who buy forests are not
just out for the economic value of
trees. They want to be able to walk
around in the woods and feel what
a beautiful place it is. Realtors
dealing in forest properties indi-
cate that buyers from their area are
paying a higher price for a beauti-
ful forest than for a less attractive
forest that has more timber.
Another factor affecting the price
of a forest property, just as when
a person buys a home, is location.
Forests within a 100-km (60-mile)
radius of densely populated areas
Dry hands safest
DAMP HANDS spread 1,000 times
more germs than dry hands. This is an
important fact for the public to keep in
mind as countries around the world try
to tackle the escalating H1N1 (swine
flu) pandemic. Advice from all authori-
ties, including the World Health Or-
ganization and the US Centers for Dis-
ease Control and Prevention, remains
the same: Good hand hygiene is key.
Despite this, too few people know how
to wash and dry their hands in the most
hygienic way.
are in general twice as expensive per
cubic meter of timber as a property in
a remote location.
But there are other factors apart
from the timber supply and location
that affect the price. These include
hunting, leaseholds, lakes and other
water on the property. All these can
generate income during the year.
In its annual report, SCA has chosen
to value its trees and land separately.
Trees are called “biological assets,”
and their value is calculated based on
the estimated cash flow they can gen-
erate in the future. This cash flow is
based on the expected value of their
timber less felling costs. That also in-
cludes the cost of planting new trees
on the land.
SCA recognizes standing timber at
fair value, with the value amoun-
ting to SEK 24.7 billion at year-end
2008. Added to this is the value
of forestland, SEK 911 million. The
value per hectare of productive
forestland was SEK 12,232, compa-
red to SEK 9,050 in 2006.
AS E !
DON ' T ER
“To dry your hands properly is as im-
portant as washing them. This combi-
nation is a simple and unbeatable way
to reduce the risk of becoming infected,
especially in public places,” says Jenny
Logenius, product and marketing man-
ager for Tork at SCA Tissue Europe.
Up to 99 percent of the germs can be
removed by drying your hands prop-
erly. When away from home, a single-
use paper towel ensures that hands can
be completely dried and are virtually
germ-free.
[ 4*2009] SHAPE SCA *5
2009-11-25 10:14:27
 Women
SHAPE COVER

HOLD TRUMPS
Companies that are good at marketing themselves to
women will be the big winners once the economy gets
going again. Even though the world’s women have
greater purchasing power than all of India and China
combined, most companies continue to target men.

w
TEXT: SARA BERGQVIST PHOTO: PYSSE HOLMBERG

omen are frustrated Most women in the survey worked

and dissatisfied with
what’s being offered
and are looking for
products and services that can save
them valuable time, but companies
are bad at meeting their needs,” says
Kate Sayre at the Boston Consulting
Group.
Together with Michael J. Silver-
stein, she has written Women Want
More, a book based on a survey of
12,000 women from 22 countries
who answered questions about their
consumption, work and leisure habits
and how well different companies and
industries meet their needs.
“Rather surprisingly, there’s a
really broad consensus on demands
and desires among women from dif-
ferent countries,” Sayre says.
40 hours or more a week. In total,
they spent two-thirds of their time on
their jobs, looking after the children
and household shopping and chores.
To manage everything, many women
chose to sacrifice sleep. One out of
eight women with children at home
slept five hours a night or less. Many
of the women felt they had too many
demands on their time, didn’t have
time for themselves and faced conflicts
between 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 and
provide products that simplify wom-
en’s everyday lives have a lot to win.”
Women were most dissatisfied

6*SCA SHAPE [ 4*2009]

EN06-12_cover_kvinnor.indd 6 2009-11-24 19:34:06

n
with fi nancial services. Many of them
thought they hadn’t been treated with
respect and had been given bad or con-
tradictory advice.
“Companies have to come up with
simpler, clearer offerings where the
benefits of the service are clear and
obvious,” Sayre says.
The food, health care, fashion and
auto industries were also given the
thumbs down. Sayre and Silverstein
say that in today’s society, it’s still dif-
ficult for women to fi nd a pair of pants
that fits them, buy a healthy meal or
purchase a car designed for function
rather than speed.
Women today control roughly
65 percent of household income and
sometimes significantly more. In
dollar terms, that’s equal to a lofty
12 trillion dollars a year.

EN06-12_cover_kvinnor.indd 7 2009-11-24 19:34:12

 SHAPE COVER
Only 7 percent
of Japanese women
consider themselves attractive,
compared with half of Indian
and Russian women.
“Within the next few years, women
will have another 5 trillion dollars to
spend on products and services,” Sayre
says. “There’s great potential here for
companies that can tailor their offer-
ings so they fit women better.”
The largest increase will take place
in developing countries as a result of
the growing number of women who
are getting an education and working
for a living.
“Especially in India and China,
incomes have grown really rapidly,”
Sayre says.
THE SURVEY FOUND great opti-
mism among women in developing
countries. In Brazil, for example, nine
out of ten women are optimistic about
the future, compared with only one
out of five in Italy.
“Far more women in developing
countries than in industrialized coun-
tries view the future positively and
think that life will be better for them
and those around them,” Sayre says.
In many developing countries,
women also tend to trade up to
higher-quality goods and services.
Russian women are the ones who
put the greatest emphasis on wealth
and consumption. They want to
enjoy their newfound prosperity
and are willing to spend their money
on luxury items, which has created
opportunities for both national and
international brands in Russia.
Some companies saw the potential
of marketing themselves to women
in developing countries early on. For
instance, Natura has had success sell-
ing its affordable, non-animal- tested
8*SCA SHAPE [ 4*2009]
EN06-12_cover_kvinnor.indd 8
cosmetics in Brazil, and Cinemex shows
new movie releases to mothers and their
children during the day in Mexico.
Campbell Soup is another good
example. When the company decided
to invest in the Russian market, it failed
at fi rst. Russia consumes the most soup
Where the
in the world, and the company had not
understood the strong soup culture that
ad is placed
prevailed there. Women put their heart
and soul into making soup. Recipes are is just as
handed down from generation to gen-
eration, and ready-made soups were important
hardly at the top of their wish list. So
the company came out with a soup base as how it
that women could build on. It meant
that women could adapt the soup to
their own style and taste, yet still cut
is done.
preparation time in half.
“In developing countries, there may
also be completely different arguments
than in the industrial world,” Sayre
points out.
She mentions a commercial for a
soap manufacturer, a company that has
had great success selling its products in
China.
“The commercial shows a little boy
who’s always sick so he doesn’t have
the energy to pay enough attention in
school,” she says. “But when he starts
washing with this soap, he’s suddenly
healthy and gets the best grades. The
commercial is so successful because it
plays on the enormous importance that
education has in China.”
THE AUTHORS
Kate Sayre and Michael J.
Silverstein are business consult-
ants at the Boston Consulting
Group. Sayre is a partner at the
German women
company’s New York office and
perform 93 percent of
works on marketing efficiency,
household chores. They also
among other things. Silverstein
have greater responsibility
is a senior partner at the com-
for tasks like car and home repairs
pany’s Chicago office. He has
compared with women
previously written several books
from other countries.
on marketing and is frequently
quoted in newspapers such as
the New York Times and the Wall
Street Journal.
2009-11-24 19:34:19
 WHERE THERE’S
GOLD TO HARVEST
Kate Sayre and Michael J. Sil-
verstein list areas with potential:
FOOD: Shopping for food and
preparing it take too much of
women’s time. Women want
healthy alternatives at affordable
prices that are easy to get hold of
and can be prepared quickly.
EXERCISE: Many women want
to work out but have a hard time
fitting it into their already jam-
packed schedules. One example
of a company that’s been suc-
cessful is Curves in the US, which
only targets women. The com-
pany offers workouts that focus
on health, well-being and grad-
ual weight reduction.
BEAUTY: The survey shows that
many women are dissatisfied
with the products available, they
feel there is too much to choose
from, and they see the industry
as dominated by men who make
wild guesses about what women
really want.
CLOTHING: Women are look-
ing for comfortable clothes
that fit nicely, preferably at
good prices. One example of a
company that has done well is
Banana Republic. It sells various
“families” of clothes that fit dif-
ferent body types and have con-
sistent sizes. If you’ve tried on
one size and one family you like,
it’s easy to buy other clothes
in the same family and size and
know they will fit well.
FINANCIAL SERVICES: There
is great potential here because
women in general are unhappy
with these services.
HEALTH CARE: Women are dis-
satisfied with their doctors and
hospitals and also think they
spend too much time making
appointments, waiting for the
doctor and waiting for test
results.

Japanese men
contribute least to
household tasks,
Indian men contribute
most.

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 50+
SHAPE COVER
Russian women
choose money and shopping
as important sources of happiness.
The majority of other women
see love as the greatest source
of happiness.
Women are
happiest between the
ages of 18 and 25 when they
are single and then again after
turning 50. The years in between
involve greater stress due to
the demands of
children and marriage.
WOMEN IN THE WORLD
✪ There are roughly 3.39 billion
women and 3.44 billion men
across the world.
✪ Women constitute 47 percent of
the world’s university students.
✪ One billion of the world’s women
work for a living.
✪ The number of women who work
is increasing 2.2 percent a year.
That means there will be at least
another 90 million women work-
ing in 2013.
✪ Total income for women across
the world is about 11 trillion dol-
lars a year. It is estimated that in
just five years this will increase
by 50 percent. In addition,
women often control a
10*SCA SHAPE [ 4*2009]
EN06-12_cover_kvinnor.indd 10
WELL-
TO-DO BUT
FORGOTTEN
Women over 50 in industrial countries are
healthy, have a lot of time and have money in
their purses. Yet they’re a relatively forgotten
group that few companies dare to focus on.
“OBVIOUSLY, IT’S CLEAR that
women over 50 are a well-to-do tar-
get group,” says Ann Spennare, a
project manager at the Swedish adver-
tising agency Forsman & Bodenfors.
“They’re aware, they’re a little better
off and can buy the products they want.
They aren’t as easy to please and often
think they’re not affected by ads. But
naturally, they’re affected just like
everybody else.”
Almost every company is fighting for
the same target group, she says – people
significant portion of other
household income.
✪ It is estimated that in the next
five years, average income for
women will increase by 3,300
dollars.
✪ Salary differences between
women and men are decreasing.
Women currently earn 54 dollars
for every 100 dollars men earn. It
is estimated that in five years the
figure for women will increase to
59 dollars.
✪ The political and financial power
of women is slowly increasing.
Rwanda was the first country in
the world to have a majority of
women in parliament in 2008.
between 25 and 45 who have the least
time and the most stress.
“Many companies are afraid of using
older women in ads because aging is
seen as something negative and is asso-
ciated mainly with ads for various
drugs and medical devices,” she says.
One example where younger mod-
els are used almost exclusively regard-
less of the age of the company’s target
group is the apparel industry.
“Otherwise, people are afraid of
coming across as old-fashioned and
scaring off younger buyers,” Spennare
says. “They count on attracting older
buyers nonetheless.”
She thinks that companies don’t nec-
essarily have to indicate their target
group in the ad.
“WHERE THE AD IS PLACED is just
as important as how it is done,” she
says. “For instance, you can place an
ad for running shoes in magazines that
you know women read rather than in
newspapers.”
Another important way for compa-
nies to reach women over 50, she says,
is to invest in product development.
“The travel industry has been really
good at tailoring products to fit this
group,” Spennare says. “It may involve
more luxurious alternatives or hotels
for couples instead of families with
children.”
2009-11-24 19:34:31
+ The biggest
reason for
dissatisfaction among
women was that
companies waste
their time.

China’s one-child
policy and a poorly developed
pension system mean that more
than one out of three women in
that country see caring for their
parents and in-laws as one of their
greatest challenges.

TEN QUESTIONS FOR SMART COMPANIES

✪ Is our company good at listening
to our customers and meeting
their needs?
✪ What are our customers dissatis-
fied with? What are the greatest
causes of dissatisfaction? How
can we address this?
✪ How do we define our market as
broadly as possible? What time-
saving solutions can we offer?
Is there a market segment that
we’re not serving as well as we
should?
✪ How do women make their buy-
ing decisions for our products?
Where, when and how do they
buy? What do they want?
✪ Is the product design adapted to
women?
✪ Does our marketing meet wom-
en’s need to save time?
✪ Does our sales staff understand
why the service or product is
better for women than other
alternatives?
✪ Is our marketing genuine? Does it
tell a good story? Does it convert
skeptics into believers?
✪ Are we thinking of the product
or service as a step in a continual
process of improvement, experi-
mentation and learning?
✪ Is this a major market for us
rather than a tiny, insignificant
segment?

EN06-12_cover_kvinnor.indd 11 2009-11-24 19:34:42

 SHAPE COVER

what women want

THEY KNOW
How do you best market yourself to women?
The four women at the Ampersand consultancy
know. Five years ago they helped develop a
concept car for Volvo that focused on women’s
needs. Now they’re investing further in women,
over-50s and immigrants.

“WE LEARNED an enormous “You can now choose variations of

Women are
willing to buy products
and services from companies
that take social and environmental
responsibility and make good
things for the world, especially
for other women.
amount when we worked with Volvo’s
concept car, and now we want to take
that experience and use it with other
industries,” says Camilla Palmertz,
one of four partners in the business
development consultancy Ampersand.
Volvo’s concept car, which was
shown at the Geneva Motor Show
five years ago, attracted consider-
able attention from media around
the world and was frequently called
Volvo’s girl car.
“But it was really about us look-
ing instead at what Volvo’s most
demanding customers had on
their wish list, and those cus-
ELISABETH OHLSSON WALLIN
these functions in Volvo’s models,”
Palmertz says.
A year and a half ago, the part-
ners started their consultancy. The
objective is to help different compa-
nies reach new target groups such as
women, over-50s and immigrants.
They are currently helping a trade
organization for the boat industry to
encourage more women to buy boats,
as well as a large shopping mall look-
ing at profitability from a gender
equality and diversity perspective.
They are also working on a still-secret
project for people over 50.
“In Sweden they’re sitting on 80

tomers were women,” Palmertz percent of the wealth,” Palmertz says

says. “They had basically the
same wishes as men but their
list was longer.”
A few details included in the
concept car were run-flat tires,
which could still be used after
the tire was punctured, and auto-
Camilla Palmertz matic opening of both the doors
and trunk. Another feature involved
More than a scan of the driver’s body, producing
a third of French a recommended setting for the seat,
women are dissatisfied neck support, seatbelt, steering wheel
with their stress levels and and pedals, which was stored in the
feel angry almost car key’s built-in memory. The seat
all the time.
adjusted automatically to the right
position when the key was put in the
ignition.
of this demographic group, “but some
companies are afraid of appealing to
them because it’s not considered cool.
Yet sometimes it’s important to see
what target group you actually have.”
She mentions the Swedish Heart-
Lung Foundation as an example.
Year after year, they took in the same
amount from donors until they began
to aim their marketing at people over
50, the group that donated the most.
“By targeting their marketing at the
donors they actually had, and using
celebrities in their marketing that
were well known among their target
group, they doubled their income,”
Palmertz says.

12*SCA SHAPE [ 4*2009]

EN06-12_cover_kvinnor.indd 12 2009-11-24 19:34:58

 full range of
liners, pads and
underwear

dry fast core™

advanced odor
protection

Fashion has evolved.

Shouldn’t bladder protection?
For a free sample call 1- 800 -781-3298 toll free or visit www.TENA.us THE evolution O F
Found in aisles where bladder control products are sold. Consult your doctor about bladder control problems.
TENA® (formerly Serenity) is a registered trademark of SCA Hygiene Products. bladder protection

EN13_annons.indd 13 2009-11-24 19:42:47

 SHAPE COVER
“SCA believes in developing countries”
TEXT: GÖRAN LIND PHOTO: ISTOCKPHOTO AND SCA
In the book Women Want More, the
authors argue that the purchasing
power of women will grow from 20 to
28 trillion dollars over the next five
years. In what way does that affect
SCA’s growth opportunities?
“Greater purchasing power for women
is obviously positive for SCA because it’s
largely women who buy our products.
That’s especially the case with hygiene
products like sanitary protection, baby
diapers and incontinence care but also in
packaging and publication papers, where
the end customers are largely women.”
In the book, it’s claimed that many
women are dissatisfi ed with the
selection 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. When
we develop our products, it’s done to-
gether with our end users – that means
14*SCA SHAPE [ 4*2009]
EN14_scakvinnor.indd 14
SCA knows what women
want. That’s what Bodil
Eriksson, senior vice
president of Corporate
Communications, says.
She believes that the
company’s future expan-
sion will take place main-
ly in poorer countries.
Bodil Eriksson
often women. We explore what they don’t always allow baby diapers.”
want and how our products can be im- Does SCA have any particular stra-
proved. For products that are targeted at tegy for women as a customer group?
women, we’re fo- “Because women are the main target
cused 100 percent group for a number of our products,
on understanding women are key in our strategies. But we
their needs.” have no integrated strategy for the entire
In which geo- customer group. But to base the work
graphic markets on women’s needs and desires when
do you see the new products are being developed can
greatest poten- give new input. We know, for instance,
tial as women’s that the environment is usually more
purchasing important to women than to men and
power grows? that they’re the ones who buy eco-label
Bodil Eriksson “The rise in products the most.
women’s purchasing power that’s ta- Does SCA have enough women in
ken up in the book largely concerns the executive positions in the organiza-
Western world. This, of course, is good tion to understand this market and
for SCA, but we see even greater poten- develop relevant products?
tial in the developing countries, where “SCA has many women at key posi-
a really large share of women don’t use tions. But then I think maybe that you
sanitary protection or incontinence don’t necessarily have to be a women
products and where household fi nances to understand this market.”
2009-11-24 20:46:17
 TREND

GROWTH
investments in infrastructure ahead of
the 2014 World Cup and 2016 Sum-
mer Olympics. Brazil will also be an
even more important producer of raw
materials now that the exploitation of
DRIVERS OF TOMORROW offshore oil fields has begun in earnest.
The growth forecast for Brazil next
It’s the developing markets, mainly in Asia and year is around 4.5 percent and for all
Latin America, rather than Europe and the US that of Latin America 3.5 to 4 percent. Sev-
are driving global growth. Their material needs will eral other Latin American economies,
including Chile, Argentina and Mexico,
continue to keep the wheels turning – not just this are also expected to accelerate in 2010.
year but for many years to come. “With sustained high growth in
GDP, incomes and private consump-
tion will continue to grow rapidly in
TEXT: MICHAEL GIANUZZI ILLUSTRATION: ISTOCKPHOTO the BRICS,” Aspman says. “As early as
next year, these countries may account
for over half the growth in global pri-
“IN THE LONG TERM, the new mid- “New statistics show that Chinese vate consumption.”
dle class in the developing countries GDP growth was 8.9 percent in the Consumer needs are great, he says.
is expected to have the potential to be third quarter,” Aspman says. “That “Especially in India and China,
the strongest driving force in the global means that China has accelerated from a the number of cars, personal comput-
economy,” says Lars Gunnar Aspman, growth rate of 6 percent at the beginning ers, broadband subscriptions and cell
head of macro strategy at SEB Private of the year to almost 9 percent in three phones is extremely low calculated per
Banking. quarters. This suggests they should man- 100 people,” he says. “In Russia and
A large middle class is developing age 9 to 9.5 percent next year.” Brazil the number is higher, but com-
in these high-growth countries, and India is moving a little less quickly pared to the OECD countries there are
the people want to catch up in terms of but will most likely reach 7 to 8 per- significant material needs to be met in
material wealth. The rise of these econ- cent growth in 2010. As a result, Asia those countries as well.”
omies is also fueled by world demand outside Japan will remain the fastest-
for the raw materials they produce. growing region in the world. ONE EFFECT of the high growth in
When the fi nancial crisis struck, the Latin America is expected to come GDP and income for developing coun-
developing markets – with the excep- in second, with Brazil leading the way. tries is that income gaps in the world
tion of Eastern Europe – were not as Brazil’s economy shrank during the will narrow over the long term. That
hard hit as the established industrial fi rst half of the year, but things have means the number of middle-income
countries, and recovery there may be turned around there as well. While the earners (with annual incomes rang-
quicker. Asia, with China and India the adoption of a new 2 percent tax on for- ing from 6,000 to 30,000 dollars) will
main drivers, is expected to be the fast- eign portfolio investments is worri- increase by about 2 billion over the
est-growing region in 2010, followed some, the prospects for the long term next few decades to 3.5 billion people,
by Latin America. The other BRIC are bright. The country has put its eco- according to Aspman.
countries, Brazil and Russia, will also nomic base in order, the fi nancial def- “These new middle-income earners
pick up speed next year. icit is small, and there will be major have the potential to become perhaps
the strongest driving force in the global
economy,” he says.
THE IMF’S FORECAST AS OF FALL 2009* The environment will be subject to
2009 2010 increasing strains.
“There will be a much greater
BRAZIL -0.7 3.5 emphasis on the need to develop cli-
RUSSIA -7.5 1.5 mate-smart alternatives and increase
energy efficiency in a number of areas
INDIA 5.4 6.4 like housing, transportation and the
CHINA 8.5 9.0 production of goods,” Aspman says.
“This may be one of the hottest growth
GLOBALLY -1.1 3.1
areas over the next 30 to 40 years.”
*Annual percentage change in GDP.
[ 4*2009] SHAPE SCA *15

EN15_bricit.indd 15 2009-11-24 19:45:44

EN16_annons.indd 16 2009-11-24 19:46:21
 TREND
FACTS:
A green corridor involves:
• logistics solutions with a doc-
umented lower impact on the
environment and climate, and
a high degree of safety, quality
and efficiency
• optimal use of transportation
modes
• harmonized regulations
• a pooling of national and inter-
national goods traffic over rela-
tively long shipping distances

GREEN
• efficiently and strategically
placed reloading points
• innovative logistics solutions,
such as information systems and
technology
Source: The Government Offi ces

CORRIDORS IN THE EU
of Sweden

Transportation is a heavy burden for the environment to lenge is to bring rail freight costs down so
that it’s as competitive as possible.”
bear. “Green corridors” – new combinations of transpor- Fruit and vegetables grown in south-
ern Italy and consumed in northern Scan-
tation routes and methods for shipping goods – will lower dinavia are today transported across the
the environmental impact in EU countries. whole of Europe by truck. The vehicles
make their way through sensitive natu-
TEXT: ANNIKA DANIELSSON PHOTO: AB VOLVO ral areas in the Alps, up through densely
populated Germany and, for Sweden, to
a terminal in Skåne in the south of the
country, where Swedish food retailers
THE WORLD IS BECOMING more and complement one another. have many of their warehouses.
more open, and it’s easy to travel to any “In Austria and Switzerland, there’s an “Our objective is to fi nd train serv-
corner we want. Our goods and products ambition to have as much as possible of ice that can operate the entire way from
are being transported quickly and effi- the heavy transit traffic between Italy and a terminal in Italy to Sweden without
ciently from factory to consumer, which northern Europe, which goes through stopping, without reloading and with-
are often in different countries. the two countries, go by rail,” says Ger- out adding or removing cars,” says Tro-
Road transportation in the EU today hard Troche, a researcher in transporta- che, who is a participant in one of the
accounts for 44 percent of all shipped tion and logistics at the Royal Institute projects that are part of the EU Com-
goods. The EU Commission estimates of Technology in Stockholm. “The chal- mission’s initiative.
that the transport of goods will grow 50
percent by the year 2020. Yet already
today, transportation patterns are strain- LARGER AND FEWER TRANSPORTS
ing the environment, and this trend can-
SCA is continually working to SCA tries to bring together vol-
not be sustained in the long run.
make its transportation more ef- umes from several industries, even
The EU Commission’s “Green Cor- fi cient. from other companies. Goods sent
ridors Initiative” is one way to lighten * Timber trucks drive the wood to the Mediterranean are shipped
the load on European roads. It involves to train terminals more often for with goods from companies in the
combining different methods of trans- shipment to SCA plants on the region. On the way back, the ships
portation and new routes to ship Baltic coast.The trains get longer are fi lled with freight destined for
and heavier. Sweden.
goods. The aim is to minimize environ- * Shipments of paper, pulp and * SCA produces lightweight and
mental impact and increase the EU’s solid wood products from north- bulky products like tissue, diapers
competitiveness, with goods shipped ern Sweden to customers in and corrugated board in factories
via a concentration of efficient high- Europe are done mainly by boat. close to its largest markets.
ways, sea routes and railroads that all

[ 4*2009] SHAPE SCA *17

EN17_transporter.indd 17 2009-11-24 20:55:34

 TREND

Bitter pill for

pharmacy chains TEXT: JONAS REHNBERG PHOTO: ISTOCKPHOTO

R
Food retailers egulations about who The decision upset the plans of major
can operate a phar- chains such as the German compa-
and pharmacies macy vary among nies Celesio and Phoenix as well as the
are joining forces European countries. In British group Alliance Boots and the
in countries with Britain, Norway, the Dutch company Mediq. These chains
liberalized pharmacy Netherlands and Bel- all aspire to become stronger in retail
gium, the pharmacy market is com- sales, where profit margins are higher
markets. But a new pletely liberalized. Sweden is taking a than in their wholesale operations.
EU decision has step in the same direction as the state
dashed some plans sells half of the country’s roughly 900 IT MIGHT SEEM ODD that the Euro-
pharmacies. pean Court of Justice would approve
of major pharmacy But in Germany, Italy, France and regulations restricting competition, but
chains. Spain, licenses to operate pharmacies the decision stems from the special po-
are given only to individual pharma- sition that pharmacies hold in many
cists. The European Court of Jus- countries.
tice ruled in May ruling that Germany “People put patient safety fi rst and
and Italy could keep this restriction. don’t want pharmacies owned by big

18*SCA SHAPE [ 4*2009]

EN18-19_apotek_991.indd 18 2009-11-24 19:33:50

 chains whose main motive is profit,”
says Rickard Ericsson, customer devel-
opment manager at SCA Health Care
Europe. “Independent pharmacies have
also established really strong trade
organizations that lobby national agen-
cies and at the EU level.”
EUROPE HAS SOME 160,000 phar-
macies today, including about 20,000
each in France, Italy and Spain. Most
of the pharmacies in those countries
are owned and operated by pharma-
cists, many of whom have owned their
shops for decades. Pharmacies serve an
important social function. They do not
simply dispense medicine but also pro-
vide advice and support when some-
one is sick. In southern European coun-
tries, people go to the pharmacy much
more frequently than in northern Eu-
rope, sometimes several times a week.
Liberalization of markets often leads
to shifts in industry patterns. In Brit-
ain, retail giants like Tesco and Asda
have set up in-store pharmacies that
offer both prescription and over-
the-counter products. In order
to compete, traditional phar-
macies are selling more and
more non-prescription items.
The large pharmaceutical
chains were surprised by the
EU court’s ruling.
“We truly expected Germany to
open up,” says Marc van Gelder, CEO
of Mediq, an international retail and
distribution company for pharmaceu-
ticals and medical supplies that oper-
ates pharmacies and supplies patients
in homecare situations.
HOWEVER, VAN GELDER believes
that increasing healthcare costs will ul-
timately bring about liberalization.
“When the pharmacy market was
liberalized in the Netherlands in 1997,
the per capita cost of pharmaceuticals
decreased thanks to better efficiency
and lower distribution costs,” he says.
Despite the ruling, liberalization of
pharmacy markets and health services
is set to continue for a host of reasons.
“Changing demographics across the
EN18-19_apotek_991.indd 19
SCA AND PHARMACIES
Pharmacies are an important sales
channel for SCA’s products, espe-
cially for incontinence protection,
where SCA’s TENA is a global leader
with 26 percent of the world market.
Incontinence protection is a pre-
scription product in many countries,
a situation that favors individual
pharmacists because it obliges peo-
ple to go to a pharmacy. In a liberal-
ized market, pharmacies risk losing
the opportunity of additional sales
if customers get their prescriptions
filled at the supermarket.
In a regulated market, where the
big chains are prevented from enter-
ing the retail sector, they choose to
work more actively with hospitals
and nursing homes to increase their
profit margins. This is an area where
SCA has traditionally had a strong
position.
“SCA is competitive in the insti-
tutional sector with its clinical
expertise and strong concepts like
TENA Services,” says Rickard Erics-
son, customer development man-
ager at SCA Health Care Europe.
“We offer a combination of prod-
ucts, services and skilled personnel
in the form of consultative sales,
which our competitors can’t offer.”
At the same time, SCA is working
in partnership with major wholesal-
ers like Alliance Boots and Celesio
Pharmacies
serve an im-
portant social
function.
In-store phar-
macy in Great
Britain.
with the aim of finding the optimal
model for every type of market and
customer segment.
“The aim is to get as much from
the partnership as possible regard-
less of whether it’s a regulated
or liberalized market,” says Mike
Hallerström, vice president SCA
Health Care Europe.
Regulated or free market? As far
as SCA’s business is concerned,
both offer advantages and disad-
vantages. In a liberalized market,
there will most likely be greater
price pressure.
“On the other hand, it requires a
lot of resources to handle relations
with thousands of individual phar-
macists,” Hallerström says.
Western world, with an aging popu-
lation and a growing strain on public
healthcare, all point to a growing inter-
est in home treatment of less serious
ailments,” van Gelder says.
For instance, Mediq delivers incon-
tinence products directly to the con-
sumer, in cooperation with healthcare
professionals.
“The homecare channel is an emerg-
ing channel that we believe will grow in
importance over the years to come,” he
says. “Incontinence products are par-
ticularly suitable for home delivery, as
many people still fi nd it uncomforta-
ble to buy incontinence products at the
pharmacy or a retail store.”
[ 4*2009] SHAPE SCA *19
2009-11-24 19:33:53
 TECHNOLOGY
Nanocellulose, with its won-
derful strength properties,
can be used for things like
composite materials and
barrier films but also as a
viscosity agent in food and
Wood fiber shows its
in applications for pharma-
ceuticals and cosmetics.
MUSCLE
By combining wood fibers with other materials
you can make paper as strong as cast iron.
Today’s research in wood fibers sounds like
something from science fiction.
t
TEXT: HENRIK EMILSON PHOTOS: JOHAN OLSSON AND BIRGITTA ALM
here’s plenty of fiber. The for-
est is literally full of it. Finding
new applications for cellu-
lose fiber is of great interest to
researchers who are turning the com-
ponents of a tree into a surprising array
of materials. The research and develop-
ment company Innventia in Stockholm
is working with the forest industry to
develop new applications and markets
for wood fiber.
“Traditionally, materials research has
focused on the mechanical properties
of materials,” says Mikael Lindström,
a professor at Konstfack, Sweden’s Uni-
versity College of Arts, Crafts and
Design and a researcher at Innventia.
20*SCA SHAPE [ 4*2009]
EN20-21_teknik.indd 20
“We’re working with wood as a
whole, 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, knocking
on the wooden table in front of him.
Lindström’s academic field is the inter-
disciplinary exchange of knowledge,
with an emphasis on materials science.
HISTORICALLY, researchers in plastic
and paper haven’t had much under-
standing of each other’s fields. But by
combining knowledge about microme-
chanics, plastic, modeling and cellulose
fiber chemistry, they’re producing com-
pletely new materials.
“We’re working to understand the
role of fiber in plastic,” Lindström says.
“In paper, it’s the fiber bond that’s the
strength. In a composite, with an arti-
ficial compound added to produce a
construction material, it’s the contact
surface between the fiber and the plas-
tic that produces these properties.”
By looking at the fiber in plastic
from different perspectives, comparing
deciduous and coniferous wood fibers
in hard and soft plastics, and pulling
and tearing the material, you can see
how different fiber characteristics and
structures in the material can be trans-
lated into characteristics in the fi nal
material. Today, a designer who wants
to make a chair out of paper with a load
capacity of 100 kg (220 lbs) that can
later be thrown onto the compost pile
can get a suitable material.
“We shove all the characteristics
into our ‘toolbox’ and then count back-
ward, coming up with 40 percent birch
fiber, 20 percent unbleached spruce
and a certain amount of plastic, as
2009-11-24 19:33:39
 Composites of cellulose
and PLA have a wealth of
possible applications in a
number of industries, such
as automotive products,
packaging and construc-
tion. The fact that the
material works well for fur-
niture was demonstrated at
the Milan Furniture Fair in
April 2009 with the paper-
based Parupu chair.
LES
well as choosing which manufacturing
process is needed,” Lindström says.
Three properties of wood fiber offer
advantages over glass fiber or other
manufactured, synthetic fiber, he says.
For one thing, wood fiber has a much
lower density.
“That makes it much lighter,” Lind-
ström says. “In the automotive indus-
try, and for all products that have to be
transported, low weight is important.”
Another advantage of wood fiber
over other organic fibers such as linen
Wood fiber can
be customized
depending on
the application.
EN20-21_teknik.indd 21
Thread spun
of lignin fiber.
Lignin as powder.
or hemp is that there is a steady supply
of wood fiber in forests. Flax for linen
is harvested once a year and then has to
be stored. If the crop fails or the wea-
ther is bad, the quality is affected.
UNLIKE COMPOSITE plastic materials
such as carbon fiber or glass fiber, there
are many different qualities of wood fi-
ber, and these can also be modified.
“Wood fiber can be customized
depending on the application,” Lind-
ström says. “Glass, for instance, is
very inert, whereas cellulose fiber has a
structure that can be affected by chem-
istry, both on the surface and in the fiber
wall, in a way that suits the purpose.”
Researchers are leaving no stone
unturned in their work. At Innventia,
they are taking lignin from the black
liquor, a by-product of paper pulp pro-
duction, and studying how to make
carbon fiber from it.
“Traditional carbon fiber is really
expensive to make, and there’s a short-
age in the world market,” Lindström
An important part of
biorefinery research con-
cerns new products from
lignin, the substance
that holds cellulose fi -
bers together. Lignin can
already be used as a bio-
fuel, and it may also be
used for chemicals and
carbon fiber materials in
the future.
says. “Carbon fiber is lighter and
stronger than glass fiber, while at the
same time it’s very strong. For instance,
wind power turbine blades and
extreme sports equipment are made of
carbon fiber. If we can make a cheaper
carbon fiber that’s renewable and not
oil-based, there’s a big demand for it.”
Another area is nanocellulose or
microfibrilated cellulose, the smallest
component of wood fiber. The proper-
ties of microfibrilated cellulose come
from 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 length
can be several microns (millionths of
a meter). Microfibrilated cellulose is
becoming popular, with many fields
of application. It’s incredibly strong:
among the products being developed is
a nanopaper that’s as hard as cast iron
– a nail can’t be driven through it.
“We want to make high-performance
materials from the forest that don’t have
to apologize for themselves.”
[ 4*2009 SHAPE SCA *21
2009-11-24 19:33:47
 that changed
profile

the toilet
the world text: Jonas Rehnberg PHoto: scanpix

Can a simple toilet improve sanitation, conserve tant constituents of organic manure. In
larger complexes such as public toilets,
resources, produce bio-energy and in the the contents are used to produce odor-
process trigger a social revolution? The Sulabh free biogas. The minimum cost of con-
toilet has done all these things, and its inventor, structing a Sulabh toilet is between 15
and 20 US dollars.
Bindeshwar Pathak, is proud to be able to realize
the dream of Mahatma Gandhi. Today, Pathak enjoys worldwide
recognition. He has been knighted in
In conferring the 2008 Stock- Nations named 2008 the International Britain and received the St. Francis
holm Water Prize on Dr. Bindeshwar Year of Sanitation. Award from Pope John Paul II, among
Pathak, the Stockholm International But Western-style flush toilets, sep- many other accolades. The Sulabh sys-
Water Institute said his achievements tic tanks and public sewer systems tem was praised by the United Nations
“constitute one of the most amaz- are no solution for a majority of the Center for Human Settlements as a glo-
ing examples of how one person can world’s inhabitants, Pathak argues. bal “Urban Best Practice” at the Habitat
impact the well-being of millions.” The “The technology has to be affordable, II conference in 1996. When he started
66-year-old Indian social reformer has appropriate, indigenous and culturally out back in the 1960s, however, Pathak
championed affordable and water-effi- acceptable,” he says. met with much skepticism and deri-
cient toilet systems used in millions of In developing the Sulabh toilet sys- sion in his homeland. Part of the reason
homes and public toilets in India and tem in 1970, Pathak managed to meet was that his sanitation movement chal­
across the globe. all these criteria. Sulabh means “easy” lenged India’s deep-rooted caste system,
While toilets may seem like a non- in Hindi, and the concept is beauti- which traditionally assigned unpleasant
issue to Westerners, the grim reality is fully simple. A toilet bowl is connected and degrading tasks like latrine clean-
that 2.4 billion people around the world to two sealed underground pits. Only ing to the Dalit caste, formerly known
lack access to the even basic toilets and 1.2 liters of water are needed to flush as “untouchables.” The unfortunate
sanitation. Instead, they are confined to it manually after use. When one pit individuals born into this caste faced a
open-air defecation, which pollutes the is full, the contents are left to sit for lifelong duty of collecting and cleaning
ground and contributes to the spread of two years while the other pit is used. public latrines. As a result, they were
amoebas and disease. Women in par- After that time, the excreta are free of seen as contaminated and shunned by
ticular suffer from the lack of toilets, pathogens and smell and may be han- the rest of society. Dalits could not eat
as many are forced to wait until dark dled without discomfort and used with or even live near other Indians and
before they take the chance to relieve as manure. The Sulabh system also thus earned the label of “scavengers”
themselves in the open. In an attempt releases clean water rich in phosphorus and “untouchables.”
to spotlight the situation, the United and other ingredients that are impor- Bindeshwar Pathak was born into

22*SCA SHAPE [ 4*2009]

EN22-25_profil.indd 22 2009-11-24 19:33:12

 BINDESHWAR
PATHAK
BORN: 1943, to a Brahmin family
in Rampur Baghel, Bihar state,
India.
EDUCATION: M.A. degrees in
sociology and English.
Ph.D. on “Liberation of
Scavengers through Low-Cost
Sanitation,” Patna University,
Patna, Bihar.
D. Litt. on “Eradication of
Scavenging and Environmental
Sanitation in India:
A Sociological Study,” Patna
University.
MOTTO: “One lifetime, one
mission.”

[ 4*2009] SHAPE SCA *23

EN22-25_profil.indd 23 2009-11-24 19:33:20

 PROFILE

I MAY NOT BE
BORN AGAIN, BUT
IF IT HAPPENS
I WOULD LIKE
TO BE BORN IN
A FAMILY OF
SCAVENGERS, SO
THAT I MAY
RELIEVE THEM OF
THE INHUMAN,
UNHEALTHY
AND HATEFUL
PRACTICE OF
CARRYING
NIGHT SOIL.
MAHATMA GANDHI

24*SCA SHAPE [ 4*2009]

EN22-25_profil.indd 24 2009-11-24 19:33:27

 a family belonging to what is seen as
India’s supreme caste, the Brahmins. At
age 25 he worked for the Gandhi Cen-
tenary Celebrations Committee in the
impoverished state of Bihar. On being
exposed to the plight of the scaven-
gers, he decided to join the committee’s
Bhangi-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 which
a man was attacked by a raging bull.
“The bystanders who had at fi rst
rushed to save him suddenly halted
when they learned that the victim was
an untouchable,” he says. “The real-
ization that a person born untoucha-
ble would die untouchable made me
want to fulfi ll the dream of Mahatma
Gandhi and bring these people into the
mainstream of society by fi nding them
jobs other than scavenging.”
GANDHI, INDIA’S SPIRITUAL men-
tor and the founding father of the
world’s largest democracy, worked
hard to improve the situation of the
untouchables 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 his
own lifetime, however, he resorted to
suggesting that human excreta should
be covered with soil.
“I studied the scavengers for my
Ph.D. and concluded that they were a
special class united in their miseries
and social degradation,” Pathak says.
“By saving them from their misery I
felt we would save our national con-
science.”
Aware that such a feat could not
be accomplished if it didn’t fit in with
Hindu beliefs, he studied the scriptures
closely. “I concluded that scavenging
has no religious sanction,” he says. “It
is unproductive and revolting to man-
ually clean excreta, and we are also
wasting material that may be profitably
used to raise farm production and pro-
duce energy.”
Saving the scavengers from their life-
EN22-25_profil.indd 25
long sentence, however, required a new
kind of toilet, one that didn’t require
daily emptying and cleaning.
Pathak’s family and upper-caste
peers did not take kindly to his new-
found commitment. His own grand-
mother, for example, forced him to
swallow 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 not
supposed to be involved in sanitation
or 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
The Sulabh
two-pit pour-
flush toilet.
Pit full.
Sludge safe
for removal.
Pit in use.
THE TECHNOLOGY
HAS TO BE AFFORD-
ABLE, APPROPRIATE,
AND CULTURALLY
ACCEPTABLE.
and give birth to the non-profit Sulabh
Sanitation Movement. “Our passionate
obsession was that nobody should go
outside for defecation and every house
in India should have a toilet.”
Pathak and his associates managed
to convince urban planners and engi-
neers that the Sulabh two-pit pour-
flush toilet was an affordable, safe and
hygienic system in the absence of sew-
ers and septic tanks.
Following the rapid adoption of the
Sulabh system, more than 240 Indian
towns were freed of human scavengers as
10 million bucket latrines were converted
to Sulabh toilets. The Sulabh movement
also built 3,200 community toilets with
bath, laundry and urinal facilities oper-
ated on a pay-and-use basis.
TO THE UNTOUCHABLES, the grad-
ual relief from the burden of cleaning
latrines meant that other jobs and new
training had to be provided. To this
end, the Sulabh movement established
a number of vocational training insti-
tutes where “liberated” scavengers and
their children are offered training in
fields such as computer technology,
typing and shorthand, electrical trades,
woodcraft, tailoring and driving.
“Untouchables are now allowed
to visit the temples and they are able
to sell food to houses where they
once used to clean toilets,” Pathak
says. “Before, nobody would touch
these people. They are literally not
untouchable anymore. Who would
have believed such a thing could hap-
pen in this country?”
When Mahatma Gandhi was assas-
sinated in 1948, Pathak was five years
old. Gandhi’s grandson Rajmohan
Gandhi visited the University of Illi-
nois in January 2009 and said, “I am
the 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 manual
cleaning of human excreta which they
carried as head-load.”
In 1997 K.R. Narayanan, a member
of the Dalit caste, became the president
of India.
[ 4*2009] SHAPE SCA *25
2009-11-24 19:33:31
 SCA INSIDE
SCA
MAKING
“A TOYOTA” TEXT: SVEN LINDELL PHOTO: ISTOCKPHOTO
FOR SEVERAL YEARS now,
SCA Packaging has been tak-
ing actions to make production
in its factories more efficient by
using the Lean model. Today,
the process has made signifi-
cant advances in the 35 largest
of SCA Packaging’s 200 facto-
ries in Europe.
“We chose the largest ones
fi rst to better maximize the
benefits from Lean,” says Vin-
cent de Rooij, who heads the
project.
LEAN THINKING
In Toyota’s original philosophy, all non-value adding acti-
vities are mapped:
TRANSPORT – where
products are moved
unnecessarily
INVENTORY – stocks of
anything not included in
a process
MOTION – people or
equipment that move or
run more than necessary
to perform a given step
26*SCA SHAPE [ 4*2009]
EN26-27_lean.indd 26
A natural fi rst step is to take
a close look at production lines
and the individual machines.
“There, it’s a question of
cleaning and keeping things in
order to make the job smoother,”
he says. “It can be as easy as
moving a table that doesn’t fill
any function but that employees
have to take a few extra steps to
get around and has to be dusted
by cleaners. It can also mean
taking away tools that were left
after a particular job.”
WAITING – for the next
step in production
OVERPRODUCTION – in
excess of demand
EXCESS PROCESSING –
caused by bad equipment
or design
DEFECTS – the difficulty
of inspecting and elimi-
nating defective products.
2009-11-24 20:48:15

The other key part involves adapting
the infrastructure used in production,
from execution and control of opera-
tions to governance and planning.
“Last but not least, employees
should be allowed to influence the
change from the very start,” de Rooij
says. “In that way, people increase
their motivation and the feeling of
sharing responsibility.”
AT THE FACTORIES where the Lean
model was introduced, there is now a
performance board at every machine.
“The entries on the boards make
it clear what’s expected of each team,
and employees can see for themselves
how they’re performing,” he says.
Perhaps the greatest challenge arises
once the changes have been imple-
mented. It’s then a question of mak-
ing sure that the process does not once
again stagnate into a routine. So regu-
lar inspections are carried out to main-
tain the new working method.
Vincent de Rooij is very satisfied so
far. The more efficient process means
that costs are cut and the resources
freed up are used to raise quality.
Because customers’ needs are now
being met even better, the market posi-
tion is strengthened.
EN26-27_lean.indd 27
HOW TO MAKE
LESS MORE
Imagine running a lunch caf-
eteria. Customers choose from
the same menu day in and day
out. You’ve gotten rid of every-
thing in the kitchen that’s not
needed to make just the dishes
on the menu, and you’ve care-
fully organized the process.
Sharp knives here, whisks there,
frying pan close at hand. No
unnecessary bending down
or rummaging in drawers. The
refrigerator has just the raw
materials that are needed. As a
result, you can get to work and
serve the right number of dishes
that are needed at the right time.
Does that sound obvious?
Maybe it does. An organiza-
tional expert would point out
that you’ve introduced what’s
called Lean production.
The Lean method began to
be used in Japan in the last few
decades of the 20th century.
The automotive producer Toyota
led the way and is still the main
standard. Nowadays, Lean pro-
duction is a tried and tested
method for reducing waste,
eliminating steps that interfere
with the flow of production and
maximizing customer value.
Implementing the Lean proc-
ess is based on common sense
and logic.
“The first thing you do have
to do, naturally, is to deter-
mine exactly what your custom-
ers’ needs are – after all, that’s
what’s going to guide your
improvement efforts,” says Vin-
cent de Rooij, who heads up
the Lean implementation pro-
gramme at SCA Packaging.
The objective is to deliver the
right amount at the right time.
Not too late, but not too early
either.
[ 4*2009] SHAPE SCA *27
2009-11-24 19:39:23

Restroom secrets
REVEALED
SCA has partnered with the
TV home improvement series
“Designing Spaces” to un-
cover the mysteries of public
washroom sanitation and sus-
tainability. Most people don’t
know what to look for in order
to judge how clean or green a
washroom is.
“This partnership with ‘De-
signing Spaces’ showcases
Norwegians
like Libresse
The new Libresse tampons, which
were introduced on the Norwegian
market in May, reached a market
share of 15 percent after only two
months in stores. Consumer tests
confirmed that 86 percent of all
women who participated in tests
said they would consider switching
their tampon brand after having
tested Libresse. Even Libresse tow-
els and liners have a strong number
one position in Norway, with a mar-
ket share of over 50 percent.
28*SCA SHAPE [ 4*2009]
EN28-29_inside.indd 28
SCA’s commitment to improv-
ing hygiene and our environ-
mental footprint levels in public
washrooms around the world,”
says Cindy Stilp at SCA Tissue
in North America.
The half-hour-long washroom
program made with SCA aired in
September 2009 on the US cable
networks WE and TLC and can
now be viewed on YouTube.
Let the best packaging win
Design a lean, smart, “fat-free”
packaging solution for any prod-
uct that can be bought at retail
today, combining innovation with
sustainability and using no more
packaging than necessary. That’s
this year’s challenge for SCA-spon-
sored Design Challenge, a talent
competition for non-professional
European designers, students and
design schools. The winner gets up
to 3,000 euros and an internship at
SCA Packaging.
INSPIRED BY
TRADITION
SCA has launched adult inconti-
nence care products specifically
designed for nighttime use.
France, Belgium and the UK are
the first European markets to launch
the new TENA Lady Night range.
Consumers can choose between two
products: TENA Lady Night Maxi and
TENA Lady Night Mini*.
“TENA has taken its inspiration
from traditional feminine hygiene,
where the night-time sanitary towel
segment is divided equally between
thicker maxi pads and slimmer ultra
thin liners,” says Frédéric Morot of
SCA in France. The launch will conti-
nue in other European retail markets
in 2010.
* Not available in UK
This year’s contest focuses on
simple and sustainable packag-
ing design. Submissions for Design
Challenge ‘09 will be accepted
until January 31, 2010.
Some 500 students from 23
European countries entered the
competition last year with the task
of designing an effective and ap-
pealing packaging concept for
chocolate.
Read more and submit at www.
scapackaging.com
2009-11-24 19:53:12

MILL WINS AWARD
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 Environmental
Strategy of the Year Award, in the
mill category.
The award is given to “the mill
that has gone the extra mile and
above the call of duty to implement
environmental solutions,” accord-
ing to the magazine.
The judges looked for a showcase
mill, taking into consideration all
Fire to go
Lighting a campfire in bad
weather using damp wood is
well known for being tricky. The
portable fireplace “Campfire 2
Go” is a five-kilogram box includ-
ing several smart solutions that
make sure the wood will burn
easily regardless of the weather.
The product was one of the nine
winning products at the yearly
Nordic packaging competition
Scanstar. Campfire 2 Go was de-
EN28-29_inside.indd 29
the elements of its impact on the
environment, including sourcing of
raw material, water and energy use,
and air and water emissions.
“It is extremely important and
completely natural for us to actively
work with the environmental as-
pects as part of our strategy,” says
Kristina Enander, mill manager at
SCA Ortviken. “We all have a re-
sponsibility for the environment
and we also have a responsibility
toward our customers to offer envi-
ronmentally friendly products.”
veloped at the Design Center in
Tampere, Finland, in a joint effort
of the customer, Valmisnuotio Oy,
and SCA product development
and sales teams. The idea for the
product came from Valmisnuotio,
which wanted to create a brand
out of Finnish firewood and use
corrugated board as packaging
material. The firewood packed
in Campfire 2 Go consists of air-
dried Finnish birch.
SCA INSIDE
ECO-
TISSUE HITS
SCANDINAVIAN
MARKETS
Environmenal thinking
characterizes Edet
Soft Eco and Edet
Cuisine Eco, made
from 100 percent
recovered paper.
The paper is produced at SCA’s mill
in Lilla Edet, north of Gothenburg,
Sweden, close by retailers in both
Sweden and Norway. Smaller sock-
ets and more paper on the rolls
also mean less air in the transports,
more efficient packing and lower
carbon dioxide emissions during
transportation, according to SCA.
The Edet Eco-range package con-
sists entirely of renewable corn-
based bioplastics. The products are
eco-labeled with the Swan, the of-
ficial environmental label in Nordic
countries.
[ 4*2009] SHAPE SCA *29
2009-11-24 19:38:51
 forest
EVERYONE’S OFF TO THE
TEXT: JAN GRADVALL STYLIST: THERESE KÄRRMAN
WHEN SWEDEN FAILED TO qualify
for the World Cup in soccer this year,
national team manager Lars Lagerbäck
did as many others have done in recent
years: he quit the team and headed off to
the forest.
After Prime Minister Göran Persson
resigned as team manager of Sweden’s
Social Democrats a couple of years
earlier, 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 morning
in his perennial sweat suit and surveys his
realm, he can see a woodland expanse
equal to more than 400 soccer fields.
It’s not just sports stars and politi-
cians who are gaining new energy and
inspiration from the woods. Heading
off to the forest is the big new trend in
popular culture.
This year has seen the release of the
fi lms Burrowing and Antichrist, where
the main characters seek out nature
and the forest to fi nd greater resonance
in their spiritual lives.
It’s as if people are hoping that the
forest will bring out an inner truth, that
by walking through the woods they can
get rid of their stress and lay bare their
annual rings so at last they can say to
themselves: “This is me.”
30*SCA SHAPE [ 4*2009]
EN30-33_skogstrend.indd 30
1.
3.
4.
Pop music is showing the same trend.
On one CD cover after another, musi-
cians stand leaning against a trunk or
looking up into the treetops.
The trend is reminiscent of when the
Beatles split up in the late 1960s. John
Lennon, Paul McCartney and George
Harrison all marked their new starts as
artists by taking cover photos for their
15.
debut solo albums in the great outdoors. 5.
Brothers of End, the new Swedish
trio that’s been getting a lot of atten-
tion lately, seems to be influenced both
musically and conceptually by the ex-
Beatles’ early solo albums.
The cover of the group’s debut album
The End is so woods-oriented it might
have come from the Swedish Federation
of Forest Owners’ monthly mag-
6.
azine. It also seems appropriate that
one member of the band is an environ-
mental journalist.
✁ CLIP AND TAKE TO THE STORE
1. Hat,Swedteam Gore-Tex SEK 590
2. Jacket, Barbour, Keeperwear jacket
10. Jacket, quilted, Glengarnoch SEK 3,990
11. Shirt, Chevalier Wyoming SEK 695
SEK 1,490
12. Cardigan, Barbour SEK 1,390
3. Shirt, Barbour Tattersall SEK 795
4. Tie, Purdey silk SEK 1,040
13. Knickers, men's, Stuhlmann SEK 3,890
14. Gloves, lamb, Lederweiss SEK 1,125
5. Trouses, Suede Glengarnock SEK 1,190
15. Thermos, leather, SEK 1,495
6. Boots, Meindl Kiruna, SEK 4,190
16. Protective helmet, SEK 197
7. Scarf, John Partridge SEK 450
17. Earmuffs, SEK 304
8. Belt, Pinewood SEK 2,509
9. Socks, Pennine wool SEK 350
18. Chainsaw, SEK 7,315
2009-11-24 19:54:50
 16.

17.

3. 8.

Dress like the 10.

king of the forest 11.

12.

14.
18.
13.

7.

6.

9.

[ 4*2009] SHAPE SCA *31

EN30-33_skogstrend.indd 31 2009-11-24 19:36:20

 1.

4. 15.

10.
2.
1.

3.

11.

9.

7. 16.

5.

18.

8. 6.

32*SCA SHAPE [ 4*2009]

EN30-33_skogstrend.indd 32 2009-11-25 11:11:38

 Now we’re dressing like woodsmen even though
13.
12.
17.
14.
1. Hat, John Partridge SEK 590
2. Vest, Barbour Ladies Keeperwear
SEK 1, 390
3. Cardigan, Lana Salzburg SEK 1,450
4. Shirt, Chevalier SEK 595
5. Knickers, moleskinn, Barbour SEK 1,390
6. Boots, Le Chameau, SEK 1,350
7. Gloves, Woodline, Trigger SEK 495
8. Gaiters, Woodline, SEK 495
9. Muff, lamb, Lederweiss SEK 975
Thank you Widforss and Fredells in Stock-
CLIP AND TAKE TO THE STORE
holm for lending us clothes and stuff.
EN30-33_skogstrend.indd 33
we’re only off to buy a latte downtown.
OR LOOK AT BON IVER. This
group’s leader, the American musician
Justin Vernon, wrote the songs for his
epoch-defi ning album For Emma, For-
ever Ago in a remote cabin in the dark
woods of his native Wisconsin.
With his wild woodsman beard and
checkered shirts, Vernon appears in
concerts looking as if he just stepped
out of the forest.
The trend of looking like a lumber-
jack has become so big that you now
see television celebrities on morning
TV shows dressed in checkered shirts
and five-day beards. The same rugged
look can also be seen on women.
Clothing styles have followed the
path of cars. We’ve long been used to
seeing city centers full of gas-guzzling
SUVs, vehicles designed to drive down
unplowed mountain roads in extreme
weather conditions. Now we’re dress-
ing like woodsmen even though we’re
only off to buy a latte downtown.
Why are we all suddenly looking to
the forest?
There are several explanations for
the forest’s power of attraction, trend
analyst Magnus Lindkvist says in his
10. Scarf, John Partridge SEK 450
11. Jacket, Beretta KVJ Gore-Tex
SEK 4, 900
12. Vest, Beretta tweed SEK 3,990
13. Shirt, Hammerschmid SEK 545 r
14. Knickers, Beretta tweed SEK 1,990
15. Binoculars, Zeiss 10x30, SEK 7,350
16. Axe, Gränsfors, SEK 550
17. Knife, handmade, SEK 1,495
18. Backpack, Fauna handmade, SEK 2,900
✁ and people begin to get interested.
new book Everything We Know Is
Wrong: The Invisible Trends That
Shape Business, Society and Life.
“The forest has always been a sym-
bol of rebirth,” Lindkvist says. “It’s
true both artistically and spiritually.
The forest is a place where people go
to begin again. And the need to begin
again is always especially great after an
economic crisis.
“Many people have also begun to
use the forest and nature as a source of
inspiration. Biomimicry is a concept
that’s getting a lot of attention. Bio-
mimicry involves people studying the
best ideas of nature and then imitating
them. There’s almost nothing in tech-
nology or science that nature doesn’t
already have a better solution for.”
TECHNOLOGY IS ACTUALLY one
factor driving people’s dreams of the
forest, whether it entails moving there,
buying woodland or simply hiking
through the trees.
Wi-fi and social media mean that
people can have as close contact with
their friends in the middle of a spruce
forest as in a city. Today, people using
their iPhones can go out with a nature
group without missing the latest on
Twitter or Facebook.
For widely traveled urban kids, the
forest is an exotic place that remains
to be explored. Nobody’s impressed
anymore by someone who just got off
the plane from New York, London or
Berlin. But sit down in a bar and start
removing pine needles from your jacket
[ 4*2009] SHAPE SCA *33
2009-11-25 11:13:18
 ECONOMY

Strong new report from SCA

SCA managed once again to beat market expectations in the third quarter with a profit
of 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

SCA HAS SURPRISED the market
with strong earnings reports this year.
The third quarter was no exception.
Profit before tax of SEK 2.2 billion
was 18 percent higher than analysts
had forecast. For the fi rst nine months,
profit was SEK 5.7 billion, compared
with SEK 5.1 billion last year. Sales
of about SEK 83 billion were slightly
more than in 2008.
Tissue, which has not been affected
by the economic downturn to any sig-
nificant extent, has been the strongest
generator of profits this year. About 40
percent of operating profit for the fi rst
nine months, SEK 7.1 billion, came
from Tissue, helped by a better product
mix and synergy effects from acquisi-
tions in the European tissue operations.
In the third quarter, its profit was 74
percent higher than a year earlier.
Personal Care also managed to
increase its profit (up 10 percent from
the third quarter of 2008), in part
through higher profit margins for
baby diapers and a better product mix.
Its operating profit of SEK 2.3 bil-
lion for the January-September period
accounted for 31 percent of SCA’s profit.
IN FOREST PRODUCTS, the picture
is more mixed. Overall, things look
better than last year, with operating
profit of SEK 1.8 billion for the fi rst
nine months, an increase of 9 percent.
In the third quarter, the increase was
28 percent from a year earlier. Hidden
behind these figures is a sharp impro-
vement in profit for publication papers,
through a combination of higher pri-
ces, lower raw material costs and im-
provements in productivity.
Packaging is the area most affected
by the economic downturn. Packaging
accounts for one-fourth of the Group’s
sales but represented only 4 percent
of operating profit for the first nine
months. Operating profit fell 46 percent
in the third quarter as a result of lower
prices and declining volumes. A savings
program is under way which will save
SEK 1 billion on an annual basis.
SCA's focus on improving cash flow
and strengthening its balance sheet has
yielded good results. A number of meas-
ures have been implemented to increase
cash flow. Working capital has decreased
largely through lower inventory levels.
This, together with a higher operating
surplus and lower investments, among
other factors, has improved cash flow
from operating activities by SEK 6.8 bil-
lion compared with last year to SEK 8.9
billion for the first nine months. SCA’s
net debt has fallen by SEK 5 billion since
the beginning of the year.

TISSUE HAS THE ...AND THE BIGGEST SCA PROFIT

BIGGEST TURNOVER... PART OF PROFIT INCREASES
Share of sales, Jan-Sept Share of operating profit, Jan-Sept Profit before tax, MSEK
2,500
2,342

2,199**

Forest 2,000
2,014*

Products
Forest
1,946

15%
Products
Personal Care
1,703

25% 1,500
23% Personal Care
1,511
1,438

31%
1,150

Packaging 1,000
25% Packaging
4%
Tissue 500
37% Tissue
40%
0
9
8
07

8
3/ 8

9
2/ 8

3/ 9
0

0
0
0
0

0
0

20
20
20
20

20

20
/2

/2
1/

1/

2/
4

4
Q

Q
Q

Q
Q

* Excl. restructuring costs -439 MSEK

** Excl. restructuring costs -387 MSEK
34*SCA SHAPE [ 4*2009]

EN34_ekonomi.indd 34 2009-11-24 19:47:36

EN35_annons.indd 35 2009-11-24 19:51:10
EN36_annons.indd 36 2009-11-24 19:52:07