SCA's magazine SHAPE 3/2010

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Hes got a toiletin every city


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Content N 3 2010


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Create your own wedding dress from toilet paper,and learn all about profit and loss. Read these sto-

ries and more in the Shape up pages.

In a store, why do we choose one package overanother? Shape unwraps the mysteries of pack-aging design.

Organic and natural materials guide new parentswhen they buy products for their children. Also,learn how we can stem bacterias growing resis-

tance to antibiotics.

Ove Danielsson calls his public toilets publicfurniture. For four decades, he has used them todecorate cities around the world.

Fast-growing eucalyptus, or the slow-growingspruce? How fast a tree grows determines its pulpsquality and end-use.

An Olympic luge star talks openly about inconti-nence, and the SCA logo has company.

A retired sawmill from southern Sweden gets asecond chance in Zanzibar.

The half-year result exceeds expectations and

profits rise to SEK 2.2 billion.

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How green is your dinner?

Entering into matrimony shouldnt have to bring you to thebrink of ruin. So says the website cheap-chic-weddings.com, which provides tips on how you can create a really in-expensive wedding dress using toilet paper, glue, tape and astitch here and there. Each year, the website holds a com-petition to select which gown made from toilet paper is themost creative, most original, and of course most beautiful.

X

115 meters

31.3 meters

More green, please

chap chi


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No worriesThere is a newservice for people who findthemselves in need of a bath-room when they are awayfrom home: an online Bath-

room Finder that quickly andaccurately locates dozens ofthe nearest public restroomsall around the world. Theservice, powered by SitOrS-quat.com, can be used on nu-merous platforms includingiPhone app, BlackBerry appand SMS text messaging...tionline

.

DON'TERASE!

FINANCE SCHOOL


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what manypeople may believe, most

purchasing decisions aremade on the spot at thestore. A customer may have already de-cided to buy pasta but not yet decidedwhat kind. Skilled packaging designersand producers have ample opportuni-ties to influence peoples purchasing de-cisions, but they dont have much timeto grab their attention.

On average, we look at every prod-uct for less than one second six orseven seconds at the very most, says

Kerstin Gidlf at Lund University, whois conducting a study of consumer pur-

chasing processes with the help of eyemovement measurements.In purely practical terms, this is done

by equipping customers with a bikehelmet fitted with a camera. Based onthis, we can see what they look at andstudy, how much time they spend oneach package and how many packagesthey look at for various categories ofitems, Gidlf says.

Most people say that factors like nu-tritional content and price are impor-

tant to them. But when asked directly,there arent many who know the actual

price or the nutritional content of anitem they have chosen. And only a veryfew take the package down to look atit more closely. Given this and thelimited amount of time people give to apackage, its a matter of focusing on thefront of the package and keeping it to asingle, clear message, Gidlf notes.

Having a face on the package is of-ten a good way to attract attention,she says, especially if it gives a senseof eye contact. Some packages aimed

c

One second thats the amount of time we give to apackage on the store shelf. What role does packaging play

in getting consumers today to take a product home? Shapeexamines the relation between us and packaging.

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at children have characters lookingdown. That way they have eye contactwith children, who are further below,Gidlf says.

Color is also important. It only takesa hundredth of a second for it to regis-ter. We also note the shape of the pack-age after a tenth of a second, whereastext and image require at least a second.

differ-ent signals and even result in physicalreactions that apply across cultural andnational boundaries. For instance, redraises our blood pressure while blue hasthe opposite effect, says ThorbjrnMagnusson at the School of Designand Crafts in Gothenburg, Sweden.He thinks that blue often gives a senseof logic, efficiency and class, but alsocoldness. So you should never haveblue packaging if youre selling heating

units.The more similar the content is fromone product to another, the greater im-portance packaging has in the custom-ers purchasing decision. For complexproducts like cellphones, were prettyfaithful to brands, Magnusson says.But where many foods are concerned,the products are more similar and werenot as particular about which brandwe choose. Thats where packaging be-comes a lot more important.

Annika Olsson, an associate profes-sor in packaging logistics on the Fac-ulty of Engineering at Lund University,studies how to create packaging that isfunctional and user-friendly and con-tributes to a sustainable society. By farthe most important requirement is thatthe packaging protects the contents,she says. In some cases, people havelooked too closely at user-friendliness

and too little at the protective function.But its not particularly user-friendlyif the food is packaged in a way thatsomeone becomes sick as a result or it isdestroyed in some other way.

The most common criticism ofpackaging is that it is difficult to open,especially packaging for electronicsand home appliances. The same is trueof medications. This type of productis often subject to theft and copying,Olsson says. So the packaging is a

little harder to open. If more consum-ers knew that this was to protect them,I think it would be easier for them toaccept it.

At the same time, she says there aremany good solutions for how to make apackage that protects the contents andis also easy to open. One example ispill bottles that have a slot in the cap soyou can fit a pen in to leverage it open.Similar innovations should be devel-oped for other lids, such as for jam jars.

Olsson believes that creating success-ful packaging involves understandingthe user situation and integrating thepackaging into product developmentwork. The result will be products andpackaging that are more functional anduser-friendly. Many products breakwhen they are shipped and handled,she says. If the product and packaginghad been developed together, a lot of

problems would have been avoided.

seen a grow-ing shift to single-serving packagesand packaging that can be used forstore displays or for eating implements.There is also a clear retro trend, withpackaging that looks the way it did inGrandmas day and, if possible, tells astory. Closely linked to that is the eco-logical trend, with more natural pack-aging and greater demands for renew-

able material, Olsson says.She also sees how packaging is in-creasingly polarized depending onwhich sex is being targeted, especiallyfor luxury items like candy and alco-hol, as well as products for children.In drugstores nowadays, you canchoose Nemo bandages for boys andprincess bandages for girls, Olssonsays. Thats something that was neveravailable before. In the US, this trend iseven more noticeable.

If the product and packaging hadbeen developed together, a lot ofproblems would have been avoided.


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we will start to seemore intelligent packages. Along withprotecting their contents and stimu-lating peoples purchasing desire, theywill provide added value to consumers.Examples include glue and hair colorproducts with a built-in timer on thepackage.

At the Stockholm research instituteiPack, intensive research is under wayon the packaging of the future. Theaim is to lay a solid ground for new in-novations that can be out on the mar-ket within a short period of time. Theemphasis is on renewable materials andpaper packaging.

The innovations are a combinationof new ideas and products from part-ner companies, says Fredrik Jonsson,director of operations for iPack. Our

task is to provide new functionality topackaging that makes everyday life alittle better for people.

ideas will prob-ably be appreciated by many peoplewho have struggled with hard-to-openpackaging for electronic products.Instead of packaging that is welded to-gether, researchers at iPack have testeda glue that can be unstuck using electriccurrent. In practice, this could be done

at the check-out counter with the helpof a scanner and code, Jonsson says.

In another project, digital displayshave been printed on the packaging.This allows moving messages to bedisplayed that will quickly draw atten-tion, such as blinking warning signalsor a message advertising that the prod-

uct is on sale.Another project involves pharma-

ceutical packaging. Were lookingat systems where information can belogged in on the package, such as whattime the patient takes her medicine,

Jonsson says. The system can alsoprovide more personalized informa-tion. If someone is 70, she may notneed information about side effects forpeople who are pregnant.

researchcenter at the Royal

Institute of Techno-logy in Stockholm.

The center is financed by the researchfunding state authority Vinnova, theRoyal Institute of Technology and anumber of private-sector companies.The project to develop innovativepackaging solutions runs from 2008to 2018 and employs researchers fromseveral countries.

Soon packagingwill be doing

our thinking


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Liver spread doesnt have a long shelf life once its been opened, andtheres a big risk that the contents will be thrown away if the packageis too large. With a package divided in two, you can use a little at atime. Heln Williams, Karlstad University

By packaging the spinach in smaller chunks, you can use the amount

you need and avoid throwing anything away. Heln Williams,researcher on packaging and the environment at Karlstad University

4571193602907

Its delivered compressed in a roll to the milk producer, packed efficiently

with the finished product and takes up little space in the fridge. Annika

Olsson, associate professor in packaging logistics, Faculty of Engineering

at Lund University

A Mac gives you a personal feeling, and so does the packaging. It

consists of a black bag thats functional and so good looking thatyou really want to save it. Thorbjrn Magnusson, School of Designand Crafts in Gothenburg

SCA manu-

facures tissue boxes designed for child-

ren. By turning the boxes into animals

children are attracted by the colours,hopefully making their hygiene expe-

rience a little more playful.


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have good strategies,says Michael Cronin, president of SCAPackaging. Now the goal is to imple-ment them faster and more efficiently.

Transparency and efficiency are

important ingredients for MichaelCronin, who took over as president ofSCA Packaging in the spring.

My strength as a leader is gettingpeople to work in the same direction,focus on what is important and carrythis out, Cronin says. There shouldbe no gray areas when it comes to whatis to be done. Rather, the messageshould be clear and simple.

SCA Packaging is the second-largestsupplier of corrugated board in Europe

and a market leader in packaging design.Two of its success factors are its highdegree of integration and innovation.Thats what really distinguishes ourpeople, Cronin says. We have a stronginnovative culture, where we work veryclosely with our customers and con-sumers to produce real problem-solversthroughout the packaging chain.

The strategies vary in different mar-kets. In some countries, the focus is on to-

tal solutions; in others, the division worksmore like a pure packaging provider.

Theres no reason to act the samein every market. Whats important istaking into consideration the different

needs and conditions that exist.In the years to come, the greatest

emphasis is being placed on establishedkey markets like Germany and Franceas well as fast-growing markets in east-ern and central Europe. In the West,our strongest market position is in thefood industry, while in eastern andcentral Europe it is mainly packagingfor electronic products and auto parts,Cronin says.

operations, thereis an explicit awareness of sustainabil-ity and the environment. With cor-rugated board as the basic material,all packaging is renewable, recyclableand environmentally friendly. Gener-ally speaking, packaging is somethingthats good for the environment andreduces global waste, Cronin says. Hesees an ever-growing demand for moreenvironmentally friendly material,

from both producers and consumers.The driving forces are both economicand emotional, he says. Manufactur-ers need access to recycled material intheir operations, and consumers givehigh priority to environmental con-cerns, right after quality and price.


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Eco-ambi


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We want safe, sustainable, environmentally friendlyproducts for our children. Thats why classic activities

and building toys have eclipsed computer games on thelist of things that todays parents want for their children.

pending time with the kidsinstead of climbing the cor-

porate ladder has become thein thing, and the family ide-al is more celebrated than ever before.So says Pernilla Jonsson at the researchand consulting firm Kairos Future.

Today it brings high status to be agood parent, and its extremely impor-tant that other people think so too.What being a good parent meansvaries among different groups. Oneaspect of parenthood today influencesthe choice of products the homoge-

neous group of parents of yesteryearhas now been transformed into a va-

riety of microcultures, each with itsown ideals.That may be because many parents

are now older so theyve managed todevelop their perspective on life beforetheir children are born. They dontwant to abandon their lifestyle simplybecause theyve started a family. Rath-er, the family has become part of theirlife project.

For instance, in one group a goodparent may mean, among other

things, giving their children eco-logically sound, home-cooked food

as well as ethical, environmentallyfriendly clothes and other products.The ideal of environmental friendli-

ness is broad, and many families havehigh eco-ambitions, but this ideal isnot always reflected in their behavior.Many find eco-labeled products arestill expensive, and such items are usu-ally purchased by the parents with thegreatest commitment.

But among the array of toys forsale, some trends can be seen in every

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microculture, both in Sweden and in-ternationally. The enormous multi-media boom has ended, and insteadthe demand is for activity and build-ing toys, like balls and traditional

Legos.Parents have grown tired of all their

sitting in front of computers and TVsand want to keep their children active,says Klas Elm, managing director ofthe Swedish Toy Association, a tradeorganization.

Parents, especially first-time par-

ents, are extremely easy to influence asconsumers, especially when it comesto safety issues. Pernilla Jonsson andWanda Geisendorf, the Swedish Con-sumer Agencys expert on safety, are

agreed on this. Debates in the mediaand product scares are reflected imme-diately in both purchases and registeredcomplaints about childrens products.

Ever since tinnitus attracted a lotof attention a few years ago, Swedishparents buy far fewer loud toys, a trendthat I dont think is as clear elsewhere

in Europe, Geisendorf says.Whether it concerns toys, clothes or

other products for children, there is amajor difference in how parents makepurchases today compared to the past.

Nowadays most things are boughtonline. It could be said that stroll-ing around town has been replaced bystrolling with a computer on the couchin front of the TV at night. People startby looking at the place of purchase foritems in monthly magazines and thensurf their way there, Jonsson notes.


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Because we are passionate about everyday life. Because we want

to be closer to you, and constantly improve. Because we believe

in being forever sustainable. And because we care.

www.sca.com


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at least 25,000people in Europe die of bacte-rial diseases for which antibi-otics were ineffective. This is

a problem throughout the world, but nocomparable global figure is available.

However, random data indicatethat the situation in sub-Saharan Af-rica is significantly worse than in Eu-

rope, says Andreas Heddini, a doctorand head of the international networkReAct, which is fighting resistance toantibiotics.

The effect of resistant bacteria isalready apparent. One example is thathospitals and other healthcare facilitiesare being infected with methicillin-re-sistant staphylococcus aureus (MRSA).

In our part of the world, it is stillmainly people whose immune defensesare already weakened who die of re-sistant bacteria, but there are reportsfrom countries with poorer access tohealthcare of aggressive infections thatare affecting every part of the popula-tion, Heddini says.

that in thefuture, the healthcare industry will beunable to treat many illnesses that aretreatable today. In addition, the situ-ation will become more difficult formajor surgical procedures and chemo-therapy treatment for cancer patientsbecause these require antibiotics.

Bacteria have become resistantbecause of how antibiotics are used.Through training and networking,

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ReAct is working to counter excessiveuse, where antibiotics are used for com-plaints when they arent necessary.

Excessive use is a global threat topublic health that must be taken veryseriously. At the same time, we needto work to develop a new class ofantibiotics, with new mechanisms

of action.Good hygiene is extremely impor-tant in reducing the spread of all typesof bacteria. When, in 2009, the riskof becoming infected with swine flu(H1N1) got Swedes to wash their handsand use hand disinfectant to a greaterextent than before, the use of antibiot-ics in Sweden decreased.

All indications are that it was thehand disinfectant campaign that re-duced the number of illnesses, doc-

that the premises are properly cleanedand staff members who meet patientswear short sleeves, wash their handsin alcohol-based disinfectant and keepbacteria traps like watches and ringsat home.

tor visits and antibiotic prescriptions,although this hasnt been substantiated100 percent yet, Heddini says.

Improved hygiene in healthcare isneeded throughout the world. It isby no means a given at every hospital


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in the industry,there was no status in selling toilets, soI said I sold hygiene products. Then ev-eryone asked if I sold sanitary napkins.

When Ove Danielsson contacts mu-nicipalities and cities today, he neednt beashamed. People there talk about streetfurniture benches, lighting and infor-

mation signs. And then toilets, the mostexpensive, exclusive street furniture.

We have the worlds most advancedtoilet, which is self-cleaning with a ro-tating floor, he says proudly. It costsover 135,000 US dollars and is foundin Moscow, London, Abu Dhabi, Qatarand Rio de Janeiro.

Of Danfos 27 million US dollarsin revenue, services account for morethan 10 million US dollars. The toiletscan be purchased or leased for 10 to 15

years, including cleaning, maintenanceand protection against vandalism.Partnerships with major advertis-

ing firms are often part of the package.They pay for bus shelters and toilets,and the cities allow them to put up ad-vertisements.

Cities like Stockholm, Copenhagenand London impose stringent demandsthat toilets fit into the environment.Piccadilly Circus in London boasts ahigh-tech toilet with the City of West-

minster crest. In a nearby part of Lon-don, the Stanway Street conservationarea of Hoxton, a handicap-accessibletoilet was sold.

In Skne, in southern Sweden, anumber of toilets have grass roofs.However, Danielssons personal favor-ite is the vaulted Paragon, which is

called the Stockholm model. Thereare 65 of them in our capital, he says.

Vacation home owners in Swedenbuy a version of the classic outhouse,which can be used indoors because itcan handle toilet paper and is odor-free.

Danfo has also sold toilets to suchfar-flung places as Antarctica and theSahara desert as well as 20 toilets to theFormula One circuit in Bahrain. AndSaddam Husseins shelter, Danielssonsays. Maybe thats not something to

boast about.

and envi-ronments require toilets to be adapt-ed, he says. In the Arab world, for in-stance, people should not have to turntheir behind towards Mecca. It is alsoimportant that men and women havenot just separate spaces for toilets, butalso completely separate buildings.

Bad hygiene and the lack of toiletscause millions of deaths in the world

each year, especially in Africa but alsoin disaster areas following a hurricaneor earthquake. Danielssons free-stand-ing toilets require neither electricity norwater. They have been bought by theAmerican and Canadian armies, theUnited Nations and the Swedish CivilContingencies Agency.

Danielsson is as enthusiastic about hisproduct as he is about the business itself.Entrepreneurs often talk about strate-gies, which is nonsense, he says. Alongwith hard work, its about capturing thebird in full flight. One day our salesdirector came in and said there was a

Japanese man who wanted to buy a

Beautiful public toilets that blend into the great cities of theworld are a lifelong passion for Ove Danielsson. He hasdevoted his life to creating better urban environments andhis public toilet company Danfo is the largest in the world.

A passion for toilets


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toilet and that we should turn him down

because they would probably make cop-ies. I thought that if he was coming allthe way from the other side of the globe,he wouldnt be put off so easily. So I in-vited him in. He was very polite and Isold him a toilet.

A month later, a fax came in. A Jap-anese delegation from the same com-pany wanted to come and visit us. Theybought 100 toilets. Then their CEOcame here and bought 10,000 toilets.And after the earthquake in Kobe they

bought another 20,000 toilets. One ofthe companys best deals ever.From the start, the company, which

was based on an invention for howto package waste in plastic bags, wasowned by Nitro Nobel. Danielsson be-came the sales director at the age of 26.

After a few years, they were goingto close down the company and I wassupposed to get a position abroad, hesays. But I believed in the market andwas so fascinated by the business con-

cept that I bought the company.

He had no money except for 50,000kronor in share capital. Instead, he of-fered the royalties on everything thecompany sold for five years.

Danfos revenuesare now hundredsof times greater than they were then.Half of its 115 employees work in sub-sidiaries in Denmark, Norway, Eng-land and Dubai.

The head office, with 60 employees,is located in Nora in central Sweden.Im a big fish in a small pond, he says.

His love of the place is apparentwhen climbs into his Lexus hybrid andgives a tour of the towns mine, oldbuildings and railroad cars that arehome to the best restaurant in town.

Danfo donates bike helmets andsafety vests to schoolchildren and sup-ports local sports activities. However,Danielsson is most actively involved inan exchange program with an orphan-age in Tretjak, Russia.

Today Danielsson is 68 and works

only 30 to 40 hours a week, af-

ter battling a serious illness for fourmonths last winter.

His doctor says he has to take it easy.He still gets up at five in the morning,has a big cup of coffee, reads the lo-cal newspaper Nrkes Allehanda andthe business daily Dagens Industri andwatches the business news on TV.

Then I sleep for a few more hours andgo to work after nine. That way, I canalso work in the evening if its necessary.

When he is asked to name a few hob-

bies, he is quiet. For a long time. Weentrepreneurs are funny people, withan unnatural drive, he says. I live formy company 24 hours a day, seven daysa week.

I have to confess that I often think,was this how life was supposed to be?Was that it? After saying that, I get akick every time I travel and see one ofthe 50,000 toilets weve sold. I alwayshave a few coins in the local currencyso I can enter.


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Theres fiber and then theres fiber. In packagingproduction, the material has to be strong, so fiberfrom slow-growing trees is first-rate. But when pro-ducing tissue paper, pulp from the fast-growingeucalyptus tree adds valuable qualities.


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from conifers are longer and producestronger paper. Fibers from deciduoustrees are shorter and produce softer,more delicate paper.

To produce paper and board of a

certain quality, pulp is usually mixedtogether using different methods anddifferent kinds of fibers.

The big newcomer in the pulp in-dustry today is the eucalyptus tree.For about a dozen years, the greatestgrowth in the pulp business has beenin Southeast Asia and South America,primarily because of the eucalyptus,the fastest-growing tree in the world.Cultivated in plantations under opti-mal conditions in a warm, humid cli-

he method of using wood tomake paper was invented in themid-19th century. Prior to that,rags were the preferred mate-

rial. However, the principle is the same

processing and refining fibers in theraw material. The leading regions forthe paper and pulp industry were NorthAmerica and northern Europe, whereforests the raw material were found.

Fir, pine, beech and aspen are amongthe most common varieties of treesin paper production. It is the cellu-lose fiber in the wood that is the actualraw material. The length, width andstrength of the fibers determine theproperties of the end product. Fibers


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mate, it may reach full height in seven

or eight years one-tenth the time forpine. Its short fibers are suitable, amongother things, as a softener in pulp forhygiene paper.

deciduous tree,and southern pulp producers have beco-me strong competitors for pulp compa-nies in the northern hemisphere, whoseoperations have focused on wood fromdeciduous trees as a raw material.

But for companies that generally

produce pulp from the wood of conifers,

like SCA, eucalyptus is largely a comple-ment to its operations.Tissue is essentially made from the

pulp of conifers, like fir and pine,says Peter Sandstrm at SCA. But conif-erous pulp, which on its own produces arather rough, stiff paper, has to be mixedwith short-fiber pulp to become soft.

And thats where eucalyptus fiber hasincreased its percentage of pulp over thelast decade. The higher the percentage ofshort fibers, the softer the paper.


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Five more Tork brand towel and

tissue products have earned GreenSeal certification in the US, increas-ing SCA Tissues total of GreenSeal certified products to 22.

Green Seal is an independent,nonprofit organization that usesscience-based standards and thepower of the marketplace to create

a more sustainable world by pro-moting themanufacture,purchase anduse of envi-ronmentallyresponsibleproducts andservices.


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The UK has created a set of Na-tional Indicators on Sustainabilityfor its local government authorities,which is why social housing provi-ders are now demanding certified

timber for their repair and mainte-nance programs. The procurementprocess involves a pre-qualificationstage, in which competing buildersmerchant suppliers are filtered ac-cording to their compliance with therange of criteria. FSC chain-of-custo-

dy certification on timber and woodproducts gives merchants a solidcompetitive advantage.

SCA now helps UK buildersmerchants to prepare for success-

ful FSC chain-of-custody audits byindependent auditors. Bob Bastow,SCA Timber Supplys Environme-nt and Quality Assurance Mana-ger, devised a simple 10-stage planfor builders merchants, enablingthem to organize their system and

staff training procedures in prepa-ration for the audits. In the past 12months SCAs help has brought 22companies successfully throughFSC chain-of-custody audits.

SCA is one of the worlds big-gest suppliers of FSC-certif iedproducts. The breadth of thisportfolio, which includes solid-wood products, pulp, toilet paper,kitchen rolls, magazine paper andnewsprint, is probably unequaled.


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ry, dead palm leaves rustle30 meters up in the crownof coconut trees as a gentlewind blows in from the

Indian Ocean. The long trunks arch overthese paradisiacal beaches. Small crabshide among their roots. It looks like anidyll, but theres also a downside. On theisland of Zanzibar off the coast of Tan-zania, there are an estimated 4 millioncoconut palms. Sixty percent of them aretoo old and may even be dangerous. Old

or dead trees can cause serious accidentsif they lose their roothold or fall down.Staffan Lund arrived here 15 years

ago and went to work as a carpenter.Lund was trained at the Artur Lun-dqvist School in Trollhttan, Sweden,and worked with the respected Salonencarpentry shop until 1990. Workingin Zanzibar was completely different.Lund fell for the hard coconut palm tim-ber, but all the wood on the island wassawed by hand, and the quality varied

considerably. Lund struggled for a num-ber of years with uneven raw materials.

Coconut palms produce one of thehardest woods its even harder anddenser than oak, yet its not really wood.Coconut palms, like bamboo, belong tothe grass family, and the coconut palmhas an unusual composition, with threedifferent densities. The outer cover ishard, and the farther in you go, the soft-er it is, with a core like balsa wood.

You can get four hard planks of top

quality from a three-meter log, Lundsays. The softer timber in the middle issold locally or used by the constructionindustry for making molds. The rest ofthe trunk is firewood, and people usethe palm leaves to weave baskets andthe like. They use everything here.

years of work-ing with hand-sawed wood, Lund re-alized that the only way to expand hisbusiness would be to get hold of a saw-

mill that could manage to saw throughhard coconut palm logs.

I wanted to get hold of an old Swed-ish mill, one that could handle thestrain, but also one that I could repairwith a hammer, says Lund, laughingat his crazy idea.

Some time later, he got wind of asawmill outside Oskarshamn, Sweden,that had been out of service for manyyears, but he had no idea what condi-tion the 1960s mill was in.

I bought it for 12,000 US dollars,but then came the hard part. How was Igoing to get it to Zanzibar?

It turned out that the sawmill wasalmost like new and had barely beenused. The mill was disassembled andthe parts packed into containers for thelong trip to Zanzibar. It cost 300,000kronor to disassemble, ship, reassembleand convert the mill for coconut palms.

Coconut palms really wear thingsout, he says. We use the best we can

d


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get hold of when it comes to blades Stellite-tipped blades from Lngshyt-

tan. In Sweden, you can saw between250 and 500 logs of pine with the sameblade. Here, I can only manage eightto 10 coconut palm logs. We changeblades four or five times a day.

only learned theart of sawing coconut palms over thecourse of his years in Zanzibar. It hasalso been a question of tackling thebureaucracy found in this former Brit-ish colony. Even people who own land

with coconut palms are not allowed tofell without a permit. And every palm

thats taken down must be replaced byone thats newly planted.We can only use what are called se-

nile palms, Lund says. The ones thatproduce coconuts have wood thats toosoft, and they only become hard aftertheyre done producing at 70 to 90years old, so were really doing some-thing good for the environment.

Each year some 10,000 coconutpalms are felled in Zanzibar. Lundssaw accounts for 2,000 of them. The

We can only use what arecalled senile palms. Theones that produce coconutshave wood thats too soft.

rest are still sawed by hand there isonly one sawmill on the island. Lundis also the largest single consumer ofcoconut palms and thus the one thatplants the most new ones.

Having started as a lone carpentermaking furniture with hand-sawedcoconut palm wood, Lunds operationshave grown into the company Scan-Za, today a small-scale industry. Theold sawmill is set up under a roof nowalls are needed. The planks are stored

in a large building next door. There thewood is transformed into everythingfrom doors to finely crafted furniture,and Lund now has 30 employees.

But Sundays are a day off, whenLund takes his family to one of Zanzi-bars long, sandy beaches. The islandhas about 300 days of sun each year,and the average temperature is between25 and 30 C (77 and 86 F). So its agood idea to stay in the shade of a coco-nut palm.


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SCA surprises

material prices,including a pulp price at a record high,many feared SCAs profit margins wouldbe squeezed in the second quarter. That

turned out not to be the case in fact,just the opposite. Both profit marginsand volumes increased in just aboutevery business area during the secondquarter compared to the first. Higherprices and volumes along with costssavings, primarily in Packaging, resultedin a rise in pre-tax earnings to 2.2 bil-lion Swedish kronor, which was 26 per-cent higher than in the first quarter.

Packaging had the most positivetrend, increasing its operating income

in the second quarter to 306 millionkronor, compared to 11 million kronor

in the second quarter of 2009. Alongwith higher prices and volumes, its re-structuring program also contributedto higher earnings.

Perhaps most surprising was thatTissue also managed to increase earn-ings and volumes during the secondquarter, compared to the first quar-ter, despite higher raw material costs.Its profit margin rose to 7.9 percent inthe second quarter, compared to 7.3percent in the first. Lower costs in bothproduction and distribution, togeth-er with increased volumes for Away-From-Home tissue, lifted earnings.

Personal care increased both revenues

and operating profit. Incontinence prod-ucts under the Tena brand continued

to grow, particularly in Latin America,Russia and Eastern Europe. Femininecare also experienced good growth, in-cluding in Russia and Latin America.

an efficiency im-provement project in European diaperoperations, which includes closing theplant in Linselles, France. The annualsavings is projected to be 15 millioneuro, which is expected to be achievedstarting in the third quarter of 2011.

Forest Products also recorded a fairlysharp improvement in revenues andearnings compared to the first quarter.Among the factors contributing to the

positive trend are higher prices for pulp,timber and solid-wood products.

SCAs six-month report made for pleasant reading for the stock mar-ket. Earnings were clearly above expectations for the second quarter,which got the business media buzzing about a surge in profits.


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A nappy,means more time

SCA's magazine SHAPE 3/2010

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Transcript of SCA's magazine SHAPE 3/2010