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SCA and St1 have entered a joint venture to produce and sell liquid biofuels. SCA will supply tall oil to the joint venture and will invest approximately SEK 0.6 billion in the company. SCA and St1 will be equal shareholders of the joint venture, which will itself have a 50% share in the St1 Gothenburg Biorefinery, which is now making an investment in a biorefinery with total capacity of 200,000 tonnes of liquid biofuels, estimated to a total investment cost of SEK 2.5 billion. The new biorefinery will be operational in Q2 2023.

“Partnership with SCA is a key element in the implementation of our renewable fuels investment program and it secures the supply of renewable feedstock materials to meet the ambitious Nordic climate targets for 2030”, says Henrikki Talvitie, CEO of St1 Nordic Oy.

2018 04 23 102625“In line with our communicated long term strategy, we will now with the joint venture with St1 go from being a supplier of tall oil to the chemical and fuel industries to becoming active in the further refining of our renewable raw materials”, says Ulf Larsson, President and CEO of SCA. “We will continue to develop the business potential of the renewable by-products we have from our forests and industries in order to further develop our value chain and to contribute to the EU’s ambitious climate strategy.”

The new biorefinery is under construction on the St1 refinery site in Gothenburg and will have a total capacity of 200,000 tonnes of liquid biofuels. It is designed to optimize production of renewable HVO diesel and biojet fuel and to use tall oil-based feedstock. The joint venture will have access to SCA’s tall oil, a by-product from the kraft pulp production at SCA’s mills in Östrand, Obbola and Munksund. The biorefinery will also be capable of using a wide range of other feedstocks and is expected to be operational in Q2 2023.

As part of the agreement, St1  also becomes a 50% owner of SCA Östrand Biorefinery. The Östrand biorefinery project has recently received environmental permits for the production of 300,000 tonnes of liquid biofuels based on black liquor (a by-product from kraft pulp production) and solid biomass (such as sawdust or bark). The biorefinery in Östrand is a development project where a number of technological challenges remain to be solved before a project design can be finalized.

St1 Nordic Oy is a Nordic energy group whose vision is to be the leading producer and seller of CO2-aware energy. The Group researches and develops economically viable, environmentally sustainable energy solutions. St1 focuses on fuels marketing activities, oil refining and renewable energy solutions such as waste-based advanced ethanol fuels and industrial wind power. The Group has 1250 St1 and Shell branded retail stations in Finland, Sweden and Norway. Headquartered in Helsinki, St1 employs currently more than 1000 people. www.st1.com

The core of SCA’s business is the growing forest, Europe’s largest private forest holding. Around this unique resource, SCA have built a well-developed value chain based on renewable raw material from the company’s own and others’ forests. SCA offer packaging paper, pulp, wood products, renewable energy, services for forest owners and efficient transport solutions. 2020 the forest products company SCA had approximately 4,000 employees and sales amounted to approximately SEK 18.4 bn (EUR 1.8 bn). SCA was founded in 1929 and has its headquarters in Sundsvall, Sweden. For more information, visit w.sca.com

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ABB’s appointment by Voith to deliver end customer electrification package enables SCA to transform kraftliner production capabilities at Swedish pulp and paper mill

ABB has been contracted by machine supplier Voith to deliver drives and electrification to support the build of SCA’s new kraftliner machine PM2 at its Obbola mill in Umeå, Sweden.

The contract is in addition to an automation and control system upgrade based on the ABB Ability™ System 800xA distributed control system (DCS), drives and instrumentation package that SCA awarded to ABB for the brownfield expansion, complementing ABB’s existing installed base and long-standing service agreement.

The installation of a new machine, infrastructure and optimized capabilities means that SCA’s annual production at Obbola will increase from the current 450,000 tonnes of kraftliner to 725,000 tonnes. The feat of bringing a brand new, large and wide machine online will meet the growing demand for renewable packaging with higher production capacity and efficiency.

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“Increased focus on sustainable packaging and e-commerce is boosting demand for high-quality packaging paper,” said Per Strand, Project Director at SCA. “The new machine from Voith and the associated ABB product selection will allow substantial increases in production and will allow the Obbola mill to meet increased market demands.”

Voith, as a full-line supplier, is taking responsibility for the entire papermaking process and project handling of the new Obbola mill. ABB’s scope includes sectional drives suitable for high power and high power density machines as well as specialized motor requirements, ABB Ability ™ System 800xA drive control system with ABB Ability ™ Data Logger tool and Safety PLC solution for the drive system safety functions.

“This contract allowed the opportunity to demonstrate ABB’s willingness to share a project scope with OEMs like Voith and serve the end customer in a way that harnesses our local presence and global know-how,” said Per-Inge Bengtsson, Sales Manager for ABB Pulp & Paper, Sweden.

“We are able to work closely with contracted parties to offer a more agile management style that enables us to better mitigate risks and balance expectations for both the OEM and customers.

ABB (ABBN: SIX Swiss Ex) is a leading global technology company that energizes the transformation of society and industry to achieve a more productive, sustainable future. By connecting software to its electrification, robotics, automation and motion portfolio, ABB pushes the boundaries of technology to drive performance to new levels. With a history of excellence stretching back more than 130 years, ABB’s success is driven by about 105,000 talented employees in over 100 countries. www.abb.com

Process Automation: ABB’s Process Automation business is a leader in automation, electrification and digitalization for the process and hybrid industries. We serve our customers with a broad portfolio of products, systems, and end-to-end solutions, including our #1 distributed control system, software, and lifecycle services, industry-specific products as well as measurement and analytics, marine and turbocharging offerings. As the global #2 in the market, we build on our deep domain expertise, diverse team and global footprint, and are dedicated to helping our customers increase competitiveness, improve their return on investment and run safe, smart, and sustainable operations.

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SCA will increase the price of White and Brown Kraftliner by €50 per tonne. The new price is valid for deliveries from February 1, 2021.

2018 04 23 102625“The market is characterized by a very strong demand for Kraftliner” says Mikael Frölander, Vice President Sales & Marketing Containerboard.

For further information, please contact:

Björn Lyngfelt, SVP Communications, tel, +46 70 626 82 23

Mikael Frölander, VP Sales & Marketing Containerboard, tel +46 70 616 81 10

The core of SCA’s business is the forest, Europe's largest private forest holding. Around this unique resource, we have built a well-developed value chain based on renewable raw material from our own and others’ forests. We offer paper for packaging and print, pulp, wood products, renewable energy, services for forest owners and efficient transport solutions. 2018 the forest products company SCA had approximately 4,000 employees and sales amounted to approximately SEK 1617 bn (EUR 1,8 bn). SCA was founded in 1929 and has its headquarters in Sundsvall, Sweden. More information at www.sca.com.

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SCA and the textile recycling company Renewcell have signed an agreement for Renewcell to establish textile recycling at SCA’s industrial site Ortviken in Sundsvall. The operation is expected to create one hundred new jobs.

2018 04 23 102625“We are glad that Renewcell chooses Ortviken as the site for this investment”, says Ulf Larsson, SCA’s President. “We know that Ortviken is a very attractive industrial site with excellent infrastructure, including first class logistic solutions.”

SCA will discontinue the production of publication paper at Ortviken and will thereafter make room for Renewcell’s operations, where one of SCA’s paper machines is currently located. SCA has also started the investment to produce chemically pretreated thermomechanical pulp, CTMP, on the site.

SCA will rent out the space for Renewcell’s operations and will supply utilities such as steam, water treatment and other services.

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2018 04 23 102625SCA has decided to discontinue the production of publication paper and to invest SEK 1,45bn in the production of chemically pre-treated thermo-mechanical pulp (CTMP) at the Ortviken industrial site in Sundsvall. The decision has been preceded by consultations with employee representatives.

The proposed restructuring plan for Ortviken paper mill was announced on August 26. Following the conclusion of negotiations with employee representatives regarding the closure of publication paper production, consultations will now commence regarding the consequences of this closure for the employees. Approximately 800 employees are affected, most of whom are located at the Ortviken paper mill.

“Publication paper is a product with a declining market and we now entirely leave this product area, this enables us to focus on products with healthy growth and good prospects for the future,” says Ulf Larsson, SCA’s CEO. “The plans we are now carrying out will have significant impact and now, together with representatives of our employees, we will seek the best possible solutions for those affected.”

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SCA intends to invest SEK 1,45bn in the production of chemically pre-treated thermo-mechanical pulp (CTMP) at the Ortviken paper mill in Sundsvall. In parallel, SCA is initiating consultations with trade unions and employee representatives to discontinue the production of publication paper at the mill.

SCA intends to invest to achieve an annual production volume of 300,000 tonnes of CTMP pulp at Ortviken, using the existing infrastructure. The investment  is expected to give a positive EBITDA-effect of approximately SEK 0.3bn per annum. Expected start of production in the new mill is the beginning of 2023. SCA today has a production capacity of 100,000 tonnes of CTMP pulp at the Östrand pulp mill. This production will be phased out when the new line starts up, which will allow a future increase in the production of kraft pulp at Östrand Pulp mill.

2018 04 23 102625“Our pulp customers want us to grow with them in product segments such as packaging board and hygiene products, segments with healthy growth,” says Ulf Larsson, SCA’s CEO. “In line with our strategy, we have gradually reduced our exposure to publication paper. We now initiate negotiations to leave this product segment completely.”

Currently, SCA produces coated and uncoated publication paper on three paper machines at Ortviken paper mill with annual sales of approximately SEK 4bn. Demand for publication paper in Western Europe has declined by approximately 5% per year since 2008. During the coronavirus pandemic, demand for publication paper decreased by a further 30-40% and production at Ortviken paper mill has been adapted to the weak order level. This low demand, combined with a weak price development, results in a negative profitability for the operation.

The closure of publication paper manufacturing at Ortviken paper mill proposed by SCA will affect about 800 employees, primarily at Ortviken paper mill, but also in other parts of SCA’s operations. The closure would result in non-recurrent costs with cashflow effects which are estimated not to exceed SEK 0.9bn and an impairment of about SEK 1.1bn.

“Through today’s proposals, we intend to continue to develop a strong, sustainable and profitable industry based on our renewable forest raw materials”, says Ulf Larsson. “This will have a significant impact on many people and we will in a responsible way seek the best possible solutions for those affected.”

Negotiations under the Co-determination at Work Act (MBL) with trade unions will now begin regarding the plans to discontinue paper production at Ortviken paper mill, the investment in CTMP production at Ortviken and the impact on other SCA operations. In other jurisdictions affexcted employees and their representatives will be informed and consulted in line with the legal framework.

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2018 04 23 102625SCA has confirmed a new harvesting plan which shows that the harvesting level in the own forest will increase over the coming five years by an additional one million cubic meters per year more than the current level. The increased harvesting level gives an increased cash flow of 300-400 MSEK per year with full effect from 2025.

In 2019, SCA made a new forest survey which showed that the company’s forests had a higher standing volume and a higher growth rate than previously estimated. A higher growth rate gives higher long term harvesting potential.

The new harvesting plan is now confirmed and it is based on calculations of the development of the forest over more than one hundred years into the future. It shows that harvesting over the coming five year period can successively increase from todays level of 4.3 million cubics meter solid wood under bark (m3sub) to 5.4 million m3sub per year.

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2018 04 23 102625In order to avoid conflicts of interest, Lotta Lyrå has decided to resign from  SCA’s Board of Directors with immediate effect.

“We thank Lotta Lyrå for valuable contributions to the company”, says Pär Boman, Chairman of SCA’s Board of Directors.

For further information, please contact:
Björn Lyngfelt, Senior Vice President, Communications, tel +46 60 19 34 98
Katarina Nilsson, General Counsel and Secretary to the Board, tel +46 60 19 31 29

The core of SCA’s business is the forest, Europe’s largest private forest holding. Around this unique resource, we have built a well-developed value chain based on renewable raw material from our own and others’ forests.
We offer paper for packaging and print, pulp, wood products, renewable energy, services for forest owners and efficient transport solutions. In 2019, the forest products company SCA had approximately 4,000 employees and sales amounted to approximately SEK 19.6bn (EUR 1.9bn). SCA was founded in 1929 and has its headquarters in Sundsvall, Sweden. For more information, visit www.sca.com

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The new paper machine at the Obbola paper mill in Umeå, Sweden, will produce 725,000 tons of kraftliner per year. With a wire width of 10,200 mm and a design speed of 1,400 m/min, the PM 2 will be the most productive of its kind. The start-up of the machine is scheduled for the first quarter of 2023.

  • Comprehensive project scope including BlueLine stock preparation system, XcelLine paper machine, long-term efficiency agreement and the Voith Process Line Package (PLP)
  • Most innovative Papermaking 4.0 concept to increase efficiency, product quality and machine availability
  • Excellent mechanical properties through a customized concept with intelligent controls

Taking full responsibility for the entire papermaking process and project handling
As full-line supplier for the entire papermaking process, Voith follows the Process Line Package (PLP) concept approach and assumes comprehensive responsibility for the project, covering the BlueLine stock preparation system and XcelLine paper machine. The comprehensive product scope includes detailed engineering and the supply of all sub-systems and components for the process line. The PLP reduces the number of required interfaces and contact persons and simplifies the entire project handling.

Highlights of the OCC plant include the IntensaPulper, the industry benchmark for energy efficient pulping, and the maintenance free Bagless Disc Filters. The production line will enable industry benchmarks in kraftliner strength and convertibility to be achieved through a unique combination of proven components and intelligent controls. The multi-ply forming section with the DuoFormer Base and the MasterJet Pro headbox are tools for the online control of critical product quality criteria. The well-proven TripleNipcoFlex press section has been adapted for the production of kraftliner in order to achieve the highest production rates and surface quality levels. The CombiDuoRun dryer section, including EvoDry steel dryers and an intelligent S&C system, will ensure maximum runnability and energy efficiency. The VariFlex Performance winder incorporating SmoothRun technology will provide consistent quality rolls at maximum operational efficiency.

Obbola paper mill. Photo credit: BergslagsbildObbola paper mill. Photo credit: Bergslagsbild

Long-term efficiency agreement
The long-term efficiency and service agreement will start right away. With digital applications on the existing PM 1 and a full-scale training program for the paper mill team supported by the Voith learning platform DRIVE as well as on-site services and trainings, a smooth start-up of PM 2 will be assured. The PM 2 will then be embedded in an extensive preventive maintenance program and efficiency optimization strategy for highest productivity of the production line.

“We know about the growing market for paper-based packaging. Our intention is to enable our customer to achieve excellent mechanical properties through a customized concept with intelligent controls,” states Christoph Mueller-Mederer, President, Projects EMEA at Voith. “The order from SCA means for us to provide the whole package consisting of safety, service, quality and efficiency partnership as well as to take full responsibility for the process line.”

Setting standards with digitalization and innovation
The scope of supply for SCA includes the biggest and most innovative package in Voith Paper history and sets a benchmark in digitalization. The Papermaking 4.0 technologies cover products of the OnEfficiency product family, which use machine learning to increase the efficiency of the plant. Furthermore, it stabilizes and improves product and process quality. The OnCare products – with monitoring applications as well as digital services like OnCall Video and the connectivity to the Voith Paper Webshop – complement the OnCumulus IIoT platform product portfolio and provide the foundation for a digital integration of the value chain and predictive maintenance. The new paper machine thereby benefits from the full digitalization scope.

“The market’s most advanced kraftliner machine PM 2 with the best available technology will considerably improve the mill’s competitiveness, cost position and product quality,” says Mats Nordlander, President, Paper of SCA. “We see the partnership with Voith as the next step of our digitalized future.”

About the Voith Group
The Voith Group is a global technology company. With its broad portfolio of systems, products, services and digital applications, Voith sets standards in the markets of energy, oil & gas, paper, raw materials and transport & automotive. Founded in 1867, the company today has more than 19,000 employees, sales of € 4.2 billion and locations in over 60 countries worldwide and is thus one of the large family-owned companies in Europe.

The Group Division Voith Paper is part of the Voith Group. As the full-line supplier to the paper industry, it provides the largest range of technologies, services, components and products on the market and offers paper manufacturers solutions from one single source. The company’s continuous stream of innovations takes papermaking to the next level and facilitates resource-conserving production. With its Servolution concept, Voith offers its customers tailored service solutions for all sections of the production process. Voith Papermaking 4.0 ensures that equipment is optimally connected, while the secure use of generated data enables paper manufacturers to improve plant availability and efficiency.

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Leading papermaker SCA Graphic Paper has created a brand-new paper category for graphical printers: Fine Wood-Containing Paper (FWP) narrows the gap between woodfree and wood-containing offset papers as never before.

Leading the way in this innovative new segment is Frontier, a high bulk, high opacity offset paper with a premium feel ideal for magazines, supplements, direct mail, puzzle books and notebooks.

Frontier is being launched in the UK in partnership with Vision Paper and Board in 70, 75 and 80gsm weights and is available as part of their Your Size Bespoke sheeting service.

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Peter Featherstone, Sales Office Manager for Vision Paper and Board, says: “SCA Frontier is an exciting new type of paper, the brightest wood-containing offset paper in the world.  And with the lower substance range, combined with high bulk and opacity, printers can reduce their costs through improved yield without sacrificing the quality of their product.”

Neil Coleman, Sales Manager for SCA Graphic Paper UK, agrees. “Our new FWP paper category is an ambitious one,” he states, “It’s a category that challenges accepted industry norms when it comes to what a wood-containing paper can be and can achieve. Printers or publishers want their magazines, supplements and catalogues to be just a bit more special and SCA Frontier is the ideal choice for this.”

With an ISO brightness of 86% and a CIE whiteness of 105%, the difference between a wood-containing and a woodfree offset has never been so slight, and the high bulk and opacity associated with this type of pulp contributes to the premium quality of the grade.

SCA Frontier is available for mill direct sales in reels, or from Vision Paper and Board in both sheets and reels.  Neil Coleman explains the partnership decision: “We chose to work with Vision Paper because of their ability to produce sheets in a wide range of sizes to tight deadlines.  With 3 versatile sheeters at their disposal, as well as reel rewinding capability, we are confident of their ability to help us develop this exciting new grade in the UK market.”

Peter Featherstone confirms: “SCA are a leading paper producer, and Europe’s largest private forestry owner, but, despite their size, they are still ready to innovate and are not afraid to shake up existing perceptions of how paper should be. We are delighted to be associated with this project and relish the opportunity to develop sales of the world’s brightest wood-containing offset paper.”

To accompany the launch of SCA Frontier, a full colour brochure has been produced on the paper to highlight the outstanding results that can be achieved.  Copies are available on request from Vision Paper and Board.

The Snowy Owl

The unique Snowy Owl (Bubo scandiacus, sometimes Nyctea scandiaca) has more bulk and is whiter than most birds – and all other owls. Its natural habitat is in the northern Arctic tundra regions of North America, Russia and Northern Europe.

About SCA Graphic Paper

  1. SCA is Europe’s largest private forestry owner with over 2 million hectares of forest
  2. SCA Ortviken paper mill in Sweden produces around 775,000 tpa and employs in excess of 600 people
  3. Ortviken mill has FSC and PEFC chain of custody certification as well EU Ecolabel
  4. The mill uses biofuel instead of oil and self generates around 50% of the electricity is uses.

About Vision Paper and Board

  1. Vision Paper and board is the UK’s leading merchant-converter, established for 10 years with annual sales in excess of 85,000 tonnes and part of the £80M turnover Middleton Group employing over 300 people. 
  2. Converting equipment includes 4 sheet cutters; a mill winder and guillotining facilities to enable a 24-48 hour express conversion service incorporating bespoke size availability to provide significant cost and waste savings.
  3. Vision Paper and Board have made significant investment in their conversion and storage facility in the Midlands and can offer product availability from 20,000 tonnes of UK held graphical paper, board and packaging board comprising flat sheets, cutter reels, HSWO and cut-star reels. A varied customer base includes; commercial print, publishing, print management and the graphical and packaging board sectors, as well as business papers to stationers, wholesalers and education authorities.
  4. Vision Paper and Board recognises its responsibility towards protecting the environment and has achieved the internationally recognised FSC® and PEFCTM chain of custody certification.

About Tangent Paper Services

Tangent Paper Services offers technical and PR solutions to the paper industry, with customers including paper merchants and mill sales offices.  We also offer freelance copywriting services to paper and printing trade magazines and will accept commissions for articles and features.

For further information, please contact Tony Hardy on +44 07764 879976 or email: This email address is being protected from spambots. You need JavaScript enabled to view it.

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