Now is the time to switch to SCA shares, with its earnings forecast to grow by 7%, according to a new report.

But integrated groups such as Stora Enso and UPM-Kymmene are set to lose 60% of the profits they have made since 2000, according to Credit Lyonnais Securities report into the Swedish paper and packaging industry.

The report, prepared by analysts Christian Georges and Henry Poole, says the contrast between SCAs stable earnings and the 60% decline in the profits of Europes largest integrated paper companies will become more evident over the coming year.

The price of fine paper is also set to erode further due to low demand and overcapacity. The newsprint price rises recorded this year will also be reversed next year due to weaker consumption.