The European market for publication papers amounts to SEK 115bn, with magazine paper and newsprint each accounting for approximately 50%. The market is highly consolidated in Europe and the five largest players have a market share of 80% or higher for most paper grades. In terms of production, SCA is the fourth-largest publication papers manufacturer in Europe. SCA is the sixth largest among manufacturers of LWC paper, the fourth largest in SC paper and the sixth largest in newsprint.
Table
Publication papers, producer capacity in Europe 2011, percent | |
|---|
SCA | 6 |
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UPM | 30 |
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Stora Enso | 17 |
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Norske Skog | 11 |
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Holmen | 6 |
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Burgo | 5 |
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Other | 25 |
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Graph
Publication papers, producer capacity in Europe 2011, percent
The forecast trend-based market growth for publication papers was adjusted downward as a result of more intense competition for public and advertising expenditures from electronic media. Magazine paper is still expected to show volume growth, although this will take place primarily in Asia and South America. The global newspaper market is anticipated to remain more stable, with a slight dip in Europe and North America.
SCA primarily markets publication papers in the Western European market and to major publishers of newspapers and magazines. The single largest markets are the Nordic Region, Germany and the UK.
In Sweden, SCA produces publication papers from fresh fibre at Ortviken paper mill, which capitalises on the high quality of the raw material from its own forests. In the southern UK, close to Europe’s largest concentration of paper consumers, the jointly owned company Aylesford Newsprint uses 100% recovered paper in the production of newsprint.
In Austria, close to the large forests of the alpine region and major population centres, Laakirchen paper mill utilises fresh fibre from the forest and recovered fibre in the production of high-quality publication papers.
SCA chiefly specialises in the prime-quality segments in magazine paper, meaning SC and LWC paper, which are used in such products as magazines, catalogues and advanced printed advertising. This focus on quality segments is supported by the company’s in-depth expertise of paper production, as well as its capacity for innovation and ability to select the right raw materials for specific pulp and paper grades.