In the deep recession of 2009, SCA Forest Products managed to achieve a strong result and even stronger cash flow. Ulf Larsson, President of SCA Forest Products, talks about expectations, challenges and strategies for the coming year and beyond.
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ULF LARSSON
AGE: 48
LIVES: Sundsvall, Sweden
FAMILY: Wife and three children, ages 21, 18 and 14
CAREER AT SCA: President SCA Forest Products (Sweden, 2008), President SCA Timber (Sweden, 2003-2008), President Scaninge Timber (Sweden, 1998-2001), Sawmill manager Munksund (Sweden, 1992-1998), various forest supervisor positions at SCA Skog, Piteå and Sollefteå, Sweden | |
What will the year 2010 look like?
The prospects for 2010 look reasonably healthy for pulp and solid wood products, as suppliers have managed to reduce output in balance with the drop in demand.
Publication paper has considerable overcapacity, and the direction of long-term trends is uncertain after the significant drops due to the recession. Growth is strongest in Asia and South America, while production capacity is located in Europe and North America.
What are the biggest challenges SCA Forest is dealing with?
Publication paper is the real challenge. We have been successful in developing sought-after products even in a weak market, and this work will continue. We will also continue the shift.
What are the future strategies?
In short term we will continue to work with costs, productivity and cash flow in all business units. Energy is a field where we will increase strategic focus. The demand for renewable energy is likely to increase, and incentives for a shift to renewable energy are expected to remain in place or expand further.
We will continue to develop the management of SCA’s forests in order to increase the production of biomass while maintaining wood production and biodiversity.
Source SHAPE 1/2010