Svenska Cellulosa (SCA) is one of the world's largest paper and forestry enterprises. Its products include toilet paper (including the Velvet brand), baby and adult diapers, and hygiene products. Its forest group churns out paper (including newsprint), pulp, and timber. In Europe it is a leading maker of facial tissue, toilet paper, personal care products, and it is a global leader in incontinence products. The group owns more than 2.6 million hectares (about 6.4 million acres) of timberland in Sweden. It develops, produces, and markets products in more than 100 countries.
Geography continues to be an important subject for SCA. Europe remains the company's primary market (more than 70% of sales). In an attempt to close the gap with its competitors in the Western Hemisphere, SCA has formed a new business division, SCA Tissue North America. Sales in developing markets have grown from about 7% of total sales in 1999 to nearly 20% in 2009, thanks to SCA's efforts to expand brand awareness for its incontinence products in Asia.
New acquisitions promise to fuel sales by enhancing its portfolio of sanitary products and global presence. In mid-2012 it got a major boost when it acquired the European tissue operations belonging to rival Georgia-Pacific (GP) for around $1.8 billion. The deal included GP's former consumer and away-from-home tissue paper products and personal care businesses and manufacturing assets across Europe, including the popular Lotus brand of tissue paper.
In 2011 SCA bought out Turkish hygiene products maker San Saglik from MT Group for SEK95 million ($15.2 million). That move built upon SCA's acquisition in mid-2011 of a 50% stake in Komili, a Turkish hygiene (diapers and feminine care) products company, from Yildiz Holding. Komili operates as a joint venture between SCA and Yildiz.
To focus more on its hygiene business, SCA sold its packaging unit, SCA Packaging, to British packaging company DS Smith in mid-2012 for more than €1.6 billion ($1.9 billion). Two Swedish kraftliner mills that operate with the company's forest products business were not included in the transaction. Although packaging represented a quarter of the company's sales, the unit accounted for less than 5% of its operating profit. The company sold its Asian packaging business in mid-2010 to International Paper for $200 million. The divestment comprised 13 corrugated box plants and two specialty packaging facilities in China, Singapore, Malaysia, and Indonesia. SCA's divestment followed a reported dip in consolidated sales from 2009 levels.
Meanwhile, SCA is preserving a somewhat vertically integrated operation; nearly half of the raw materials the company uses come from company-owned forests. Much of its waste products are used in biofuel operations, and the energy created is either used by the company or sold.