SCA Q2 net sales level: tissue division’s profit up 50%

Swedish paper giant SCA has said in its 2Q interim report that operating profit for its tissue division rose 50% to SEK 1,946m.

Between 1 January to 30 June 2012 compared to the same time a year earlier, net sales for the division declined 2% to SEK 18,582m.

SCA said the results were due to “higher prices, an improved product mix, higher volumes, cost savings and lower raw material costs”.

Sales of consumer tissue increased by 6%, excluding exchange rate effects and divestments, mainly related to eastern Europe and Latin America.

Favourable growth: chief executive Jan Johansson

Sales of AfH tissue increased by 2%, excluding exchange rate effects and divestments.

Net sales for the group excluding packaging operations were level with the same period a year ago and amounted to SEK 39,763m. Operating profit increased 10% to SEK 3,939m.

SCA chief executive and president Jan Johansson said: “The hygiene operations performed well, with favourable growth and a strong earnings improvement.

“The group’s growth in net sales during the first half of 2012, excluding exchange rate effects and divestments, was 4%.

“The sales increase continued to be high in emerging markets, where personal care and tissue increased sales by 21% and 16%, respectively.”

In the last quarter, SCA has completed deals including the acquisition of Georgia- Pacific’s European tissue operations, and the acquisition of Everbeauty, whilst also increasing its shareholding in Vinda.

The acquisition of the remaining 50% shares in Pisa in Chile “strengthens our expansion opportunities in Latin America,” according to Johansson.

As per the end of June, SCA’s packaging business was sold, excluding the two kraftliner mills in Sweden, to the British company DS Smith.

“The divestment has enabled expansion and creates opportunities for continued growth in the hygiene operations,” he added.

Kimberly-Clark launches sustainability goal

Tissue manufacturing giant Kimberly-Clark (K-C) has launched an ambitious sustainability development goal in order to significantly reduce its forest fibre footprint.

The move includes reducing the amount of wood fibre sourced from natural forests by 50% by 2025.

It said the initiative will help to protect biodiversity and ensure that fibre is sourced in an environmentally responsible way, and also help insulate the company from continuing volatile price fluctuations in the world fibre market.

Suhas Apte, vice president, global sustainability for K-C, said: “We continue to strongly support sustainable forestry where those materials are needed, but at the same time we are aggressively exploring highpotential alternatives to the traditional fibre sources used in our industry, while maintaining the high quality standards our customers and consumers have come to expect.

“In the long run, we hope that one day all of our fibre needs will be met from sources that collectively have maximum land use efficiencies while minimising impact on people and our planet.”

With this new commitment, K-C pledges to cut the amount sourced from natural forests in half by 2025.

In order to meet the target, it said it’s looking at alternative fibre sources such as test marketing tissue products which contain 20% bamboo in North America.

The announcement was made in conjunction with the Rio+20 United Nations Conference on Sustainable Development, held in Rio de Janeiro, Brazil.

UNGRICHT starts design prototyping with laboratory line launch

A toilet paper sample produced with the Laboratory Line

UNGRICHT has responded to customer demand after it launched a laboratory line that enables the production of laminated samples of toilet paper and kitchen towel.

The line enables UNGRICHT to manufacture laminated products, showing the embossing pattern by using customer’s tissue and different colours of glue.

The tissue producer can then present a completely finished product to his final customer before ordering the embossing roller.

Artur Koslowski, sales manager tissue/ converting of UNGRICHT, said: “The market has been waiting for a long time for a roller manufacturer to offer such a service for medium and small sized customers.

“UNGRICHT has now made the next step towards a full service pre-production.”

As base for the design development it creates a data sheet that includes checking and optimising the technical properties of a new pattern with a specifically developed computer programme.

It then evaluates the risk of vibrations and excessive consumption of the rubber counter roller.

The service can now also be used for the optimisation of printing designs.

WVT Industries launches WaterLube Toilet Tissue recycled drive

WVT Industries has extended its WaterLube product range with the launch of WaterLube Toilet Tissue.

Launched in June, WaterLube Toilet Tissue is specifically designed for use during the manufacture of toilet tissue products in the tissue conversion industry.

Its water-based formulation is designed to replace the use of mineral oil lubricants that have been traditionally used to avoid the build-up of laminating glues on the steel and marrying rolls.

A spokesman for the company said the product is a 100% biodegradable, odourless, as well as a cleaner and safer replacement for oil-based lubrication chemicals used in the embossing process of steel to steel, pin to pin, nested, micro-deco, micro-macro and fan. It also has a neutral pH.

The company also produces the WaterLube product for the kitchen towel sector.

NEW ZEALAND

SCA Hygiene to shut New Zealand tissue and napkin converting site

SCA Hygiene Australasia is to restructure its New Zealand tissue manufacturing operations over the next 20 months with the loss of 140 jobs.

It will consolidate its two tissue manufacturing plants at Te Rapa, Hamilton and Kawera, into one site at Kawerau. The Te Rapa plant is expected to close in 1Q 2014 resulting in approximately 140 job losses.

SCA HA will invest NZ$57m to upgrade the Kawerau tissue manufacturing site. SCA HA president Peter Diplaris said: “These are difficult times for local manufacturers but we are confident that with the right approach we can build a strong and competitive future for our company in this region. Site optimisation at Kawerau is the key to achieving this.

“This decision is not a reflection on the efforts or contribution of our people in Te Rapa, but rather reflects the challenging economic and market environment we continue to operate within, including the pressure of imports.”

Diplaris added that SCA HA wants to keep manufacturing in New Zealand but in order to be competitive changes are necessary. “Unfortunately, maintaining the status quo for our local tissue manufacturing is not sustainable. We want to ensure the majority of our products for our New Zealand customers and consumers continue to be manufactured in New Zealand.”