How to improve sales when
  customers are disappearing

                                    Ulf Edman
                    ...
Three ways
 1. Increase rebates

 2. Increase rebates

 3. Increase rebates




Södra Cell International
Paper and board capacity closures in
W Europe



                           2008: 5.9 million tonnes
                     ...
Printing and writing papers in Europe
are facing a tough challenge




Södra Cell International
Consumption of printing paper in the USA
12 months average


          In million tonnes
 16
                             ...
Södra Cell International
Price trends for biomass vs pulpwood
         Prices SEK/m3
350
300                            Pulpwood
250
200
150
100
  ...
Is the party over now?




Södra Cell International
Think outside the box




Source: Volvo

Södra Cell International
The new product dilemma
  Values




                       Strategic values


                                          F...
Opportunities
 “Think outside the box” – Look for new end use areas

        What can pulp and paper be used for?
        ...
Opportunities
 Benefit from the fact that paper and pulp are
 renewable products
 e.g. The Milan Furniture Fair 2009




 ...
One example




Södra Cell International
DuraPulp
        Södra special pulp + PLA (Poly lactic acid) = DuraPulp

        Pressure and heating -> strong, stable, w...
Parupu
 Södra, Innventia and the architects
 Claesson Koiviso Rune have created a
 chair for children - Parupu - based on
...
Opportunities
 Develop your existing business with improved
 products and services. On top of that introduce new,
 added v...
Opportunities
Proactive regarding environmental issues
        The industry has invested billions of Euros in environmenta...
Opportunities
Develop new products from the wood refiner

                             Pulp

                            D...
Summary
 We have a lot of opportunities:

        Renewable products

        New products and applications

        Energ...
Södra Cell International
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02 Ulf Edman How To Improve Sales When Customers Are Disappearing

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02 Ulf Edman How To Improve Sales When Customers Are Disappearing

  1. 1. How to improve sales when customers are disappearing Ulf Edman President Södra Cell International Södra Cell International
  2. 2. Three ways 1. Increase rebates 2. Increase rebates 3. Increase rebates Södra Cell International
  3. 3. Paper and board capacity closures in W Europe 2008: 5.9 million tonnes 2009: 3.4 million tonnes Södra Cell International
  4. 4. Printing and writing papers in Europe are facing a tough challenge Södra Cell International
  5. 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. 6. Södra Cell International
  7. 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. 8. Is the party over now? Södra Cell International
  9. 9. Think outside the box Source: Volvo Södra Cell International
  10. 10. The new product dilemma Values Strategic values Financial results Time Södra Cell International
  11. 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. 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. 13. One example Södra Cell International
  14. 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. 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. 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. 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. 18. Opportunities Develop new products from the wood refiner Pulp District heating Green electricity Bio-fuel Wood residuals Lignin Chemicals Södra Cell International
  19. 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. 20. Södra Cell International

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