SAP - Sappi Limited - Sappi Fine Paper Europe contemplates cessation of
SAP
SAVVI
SAP - Sappi Limited - Sappi Fine Paper Europe contemplates cessation of
production at Blackburn Mill and on PM 5 at Maastricht Mill
Sappi Limited
Registration Number 1936/008963/06
(Incorporated in the Republic of South Africa)
Share Code: SAP
ISIN Code: ZAE000006284
Press Release
05 August 2008
Sappi Fine Paper Europe contemplates cessation of production at its Blackburn
Mill and intends to cease production from Paper Machine PM5 at its Maastricht
Mill in response to overcapacity and unrelenting input cost pressure
As a result of continued overcapacity in the European Coated Fine Paper market,
it has not proved possible to recover the sharply increased costs of raw
material and energy over recent years. Sappi has therefore undertaken a review
of its European production activities.
Despite our best efforts to curb costs, Blackburn Mill and paper machine no 5 at
Maastricht Mill have been unable to generate acceptable returns. Consequently,
Sappi has entered into a consultation process with employee representatives at
both facilities with a view to cease production at Blackburn Mill and PM 5 at
Maastricht Mill.
The sales office for Coated Fine Paper in the UK will continue operations as
will the Specialities Sales and Marketing Organisation.
In the event that these production lines do cease to produce then customers will
be offered comparable products and services from other Sappi sites in Europe and
no supply interruption would be anticipated.
Blackburn has the capacity to produce 120,000 tonnes of Graphic coated fine
paper annually. Paper machine PM5 at Maastricht has the capacity to produce
60,000 tonnes of speciality paper annually.
If the closure of Blackburn mill and PM 5 at the Maastricht mill were to happen
and as a result of reallocation of products, Sappi would reduce its Graphic
coated fine paper capacity by 190,000 tonnes
END
Issued by:
Brunswick South Africa on behalf of Sappi Limited
Tel + 27 11 502 7300
Fax + 27 11 268 5747
For further information contact:
Andre F Oberholzer
Group Head Corporate Affairs
Sappi Limited
Tel: +27 11 407 8044
Mobile: +27 83 235 2973
Andre.oberholzer@sappi.com
Claudia Hammerich
Corporate Communications
Sappi Fine Paper Europe
Tel: +32 267 69784
Mobile: +32 472 61866
Claudia.hammerich@sappi.com
Date: 05/08/2008 14:00:00 Produced by the JSE SENS Department.
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