SCA to merge renewable energy operations into new business unit, SCA Energy

STOCKHOLM, Oct. 25, 2010 (Press Release) - SCA will merge its operations in the field of renewable energy into one new business unit. In addition to encompassing such existing business operations as wind power, forest-based fuel and fuel pellets, the new unit, which will be called SCA Energy, will assume responsibility for the development of new business opportunities in the energy sector.

"Our annual sales of renewable energy already total about SEK 800m," says Åke Westberg, who has been appointed Manager of SCA Energy.

The new business unit will include SCA Norrbränslen, SCA's forest-based fuel business that delivers logging residues, peat and other unprocessed fuels, SCA BioNorr, a producer of fuel pellets from saw dust and other residual products from sawmills in facilities in Härnösand and Stugun, and SCA's growing wind-power business.

Also attractive partner for larger companies

"Interest in renewable energy production is growing, and new companies and business opportunities are materialising in Sweden and abroad. SCA has significant unutilised resources, both in terms of biofuels and wind power. Accordingly, we aim to concentrate our resources in the field to also become an attractive partner for large customers and energy producers.

The new business unit will also coordinate our development initiatives in the energy area. The energy supply to SCA's own production units will continue as before and is not included in the new business unit. SCA Energy will commence business operations at year-end.