london pulp week conference files

1. How to improve sales when
customers are disappearing
Ulf Edman
President Södra Cell International
Södra Cell International

2. Three ways
1. Increase rebates
2. Increase rebates
3. Increase rebates
Södra Cell International

3. Paper and board capacity closures in
W Europe
2008: 5.9 million tonnes
2009: 3.4 million tonnes
Södra Cell International

4. Printing and writing papers in Europe
are facing a tough challenge
Södra Cell International

5. Consumption of printing paper in the USA
12 months average
In million tonnes
16
Uncoated woodfree
14
3.3 m t (-22%)
12
10
Newsprint 5.2 m t (-45%)
8
6
4
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
Source: RISI
Södra Cell International

6. Södra Cell International

7. Price trends for biomass vs pulpwood
Prices SEK/m3
350
300 Pulpwood
250
200
150
100
Biomass for energy production
50
0
1995 2000 2005 2010
Södra Cell International

8. Is the party over now?
Södra Cell International

9. Think outside the box
Source: Volvo
Södra Cell International

10. The new product dilemma
Values
Strategic values
Financial results
Time
Södra Cell International

11. Opportunities
“Think outside the box” – Look for new end use areas
What can pulp and paper be used for?
Ask the question: What do you want us to do with paper/pulp?
Kill the myth that paper is only a throw away product,
i.e. shall be cheap
Connect R&D with Sales
Södra Cell International

12. Opportunities
Benefit from the fact that paper and pulp are
renewable products
e.g. The Milan Furniture Fair 2009
Trend:
Environmentally friendly, certified and above all renewable!
Södra Cell International

13. One example
Södra Cell International

14. DuraPulp
Södra special pulp + PLA (Poly lactic acid) = DuraPulp
Pressure and heating -> strong, stable, water repellent
100% biodegradable
Possibilities
– Attractive design objects (e.g. Parupu)
– Packaging solutions
• food trays (frozen, fresh, cheese)
• insert trays in boxes (e.g. mobile phones)
• improved board for boxes
Production methods
– Pulp moulding
– Paper and Board
Södra Cell International

15. Parupu
Södra, Innventia and the architects
Claesson Koiviso Rune have created a
chair for children - Parupu - based on
the material DuraPulp
The chair was presented at the Milan Fair in April 2009
The result
More than 700 designers and manufacturers of furniture have shown interest
Significant media interest – hundreds of articles in some 40 countries
8000 visitors to the Södra PulpLabs website where the Parupu project
is described
Mentioned on hundreds of blogs
Södra Cell International

16. Opportunities
Develop your existing business with improved
products and services. On top of that introduce new,
added value products.
Improvement grade
Potential
New added value products
Today’s business
Volume
Södra Cell International

17. Opportunities
Proactive regarding environmental issues
The industry has invested billions of Euros in environmental
improvements – It’s time to talk about it!
Can we afford to lose business because we do not have the
right eco label?
TCF
ECF light
Södra Cell International

18. Opportunities
Develop new products from the wood refiner
Pulp
District
heating
Green
electricity
Bio-fuel
Wood residuals
Lignin
Chemicals
Södra Cell International

19. Summary
We have a lot of opportunities:
Renewable products
New products and applications
Energy products
Strong environmental position
But we have to think outside the box!
Södra Cell International

20. Södra Cell International