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Pulp Paper & Logistics


LOGISTICS 15


Logistics impact of SCA’s multi- billion pulp mill expansion


7.8 billion (US$927m) in the expansion of capacity at its Östrand pulp mill in Sundsvall in Sweden will have a direct impact on SCA’s Logistics business. Capacity of the mill will be


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more than doubled to 900,000 tonnes a year of bleached sulphate pulp, providing larger volumes with more efficient logistics systems for SCA Logistics. The new pulp mill will be


constructed at Östrand while the old mill is still in operation with the expectation that it will be completed by the end of 2018. “The first step will be to build


a new timber handling facility and a new timber yard and then build the new fibre line and the bleaching facility on the site of


he decision by global hygiene and forest products manufacturer SCA to invest SEK


the present timber yard,” says Ingela Ekebro, Östrand’s mill manager. Earlier investments at Östrand – a new soda boiler in 2004 and a new lime kiln in 2010 – are part of a long-term strategy that is now being realised with an expansion of the mill. “It’s fun to be part of making our long-term strategy a reality and take the giant step that will give us world-class competitiveness,” Ekebro adds. President of SCA Logistics Magnus Svensson commented: “This is extremely positive for SCA Logistics. The effect of the additional volumes is that we will be able to develop Tunadal Port in the direction we have planned.” The planned container port


at Sundsvall is an important link in a future logistics set-up that will provide substantial


opportunities to make transportation to overseas destinations more efficient. “The container port is strongly


linked to Östrand’s construction project and is a prerequisite for cost-effective transportation to China where part of the increase in volume will be shipped,” Svensson said.


SCA is dividing its businesses


into a hygiene division and a forest industry division and the pulp mill investment is part of this development. Magnus Groth, chief executive of SCA, said: “SCA today is a global hygiene and forest industry company, where we work continuously to further develop our two lines of business. The new organisation and the investment in increased pulp production will secure the businesses’ long-term competitiveness.”


Logistics professionals support UK staying in the EU


Logistics and transport professionals want the UK to stay in the European Union, according to a survey carried out by the Chartered Institute of Logistics and Transport (CILT). In advance of the referendum on 23 June, in which UK citizens are being asked if they want to withdraw from or remain in the EU, a survey of CILT members showed that almost two thirds of respondents believe that the logistics, supply chain and transport industry will have a stronger future if the UK remains


in the EU. Responses also reveal that 64 per cent of individuals believe that the UK should remain in the EU. CILT represents more than 18,000 professionals working in the logistics and transport industry and the recent member survey received 676 responses. The members were also asked if their business will be a in a stronger position for the future if the UK remains in the EU, to which 58 per cent responded ‘yes’. Chief executive of CILT Kevin


Richardson said: “The message from our members reveals that, both as individuals and from a business perspective, a majority are in favour of the UK remaining in the EU. The Institute does not align itself with any campaign and respects that our members do have split views on this issue. “However, part of our role as a


professional body is to inform and the conclusion from this member survey suggests that those involved in our industry believe we will be stronger by staying in the EU.”


Storage capacity increase at Port of Keil


Work is continuing at the Port of Keil terminal on the northern Baltic coast of Germany that will double storage capacity by the end of the year. Existing storage space is 18,000 sq m, half of which is used by SCA Logistics. The current project involves the renovation of existing storage buildings and building new storage space totalling another 18,000 sq m. Other improvements include the


installation of two new cranes, one with a capacity of 140 tonnes and the other 40 tonnes, will provide more flexibility in loading and unloading both conventional vessels and container vessels. The need for future development potential will be met by an expansion area of 10,000 sq m. “Seehafen Kiel is a partner that


is growing in the same direction as we are and who has experience of a wide range of cargoes. This gives us the right prerequisites to expand and meet both present and future needs for our customers,” says Jörn Grage, Terminal Manager at SCA Logistics Lübeck. The strategically situated adjacent


intermodal terminal efficiently opens up new routes for connecting transportation by trailer and rail and provides opportunities to increase the volumes on trailers and the railways out into Europe. “Intermodal traffic will increase and with the changes we are currently making we will strengthen our present and future position as a strategic logistics partner with a sustainable perspective,” Grage continues. “The new collaboration allows


us to influence the freight and price structure and increases our attractiveness. We will be able to offer competitive solutions for new and existing customers in the northbound direction.”


May/June 2016


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