SAP - Sappi - Media Release - Sappi Announces Intended Closure Of Sappi Usutu
SAP
SAVVI
SAP - Sappi - Media Release - Sappi Announces Intended Closure Of Sappi Usutu
Pulp Mill And Restructuring Of Forestry Business In Swaziland
Sappi Limited
(Registration number 1936/008963/06)
(Incorporated in the Republic of South Africa)
Share code: SAP & ISIN: ZAE000006284)
("Sappi" or the "Company")
Embargo until 08:00 Friday, 30 October 2009
Media Release
30 October 2009
Intended closure of Sappi Usutu Pulp Mill and restructuring of forestry business
in Swaziland in response to market conditions and forest fire damage
In response to adverse market conditions, as well as the cumulative severe
impact of fire damage over the past few years, in particular the fires of August
2008 which destroyed 40% of the Usutu timber crop, it has become apparent that
the Sappi Usutu Pulp Mill is no longer sustainable.
Sappi has therefore today announced that it will begin the process of consulting
with staff and all other relevant stakeholders regarding its intention to close
the Usutu Pulp Mill on 31 January 2010. With the closure of the mill Sappi would
also exit the unbleached softwood flash-dried pulp market served by Usutu Pulp
Mill. The mill has a capacity of 190,000 tonnes annually.
Sappi will continue to seek future beneficiation opportunities for the
profitable utilisation of the Usutu forests. This could include the introduction
of new investors.
The Sappi Usutu Pulp Company directly employs around 600 people.
ENDS
Issued by:
Brunswick South Africa on behalf of Sappi Limited
Tel + 27 11 502 7300
Fax + 27 11 268 5747
For further information contact:
Shane Perrow Andre F Oberholzer
General Manager Group Head Corporate Affairs
Sappi Usutu Pulp Company Sappi Limited
Tel +268 452 5110 Tel +27 11 407 8044
Mobile +268 602 0303 Mobile +27 83 235 2973
shane.perrow@sappi.com andre.oberholzer@sappi.com
Date: 30/10/2009 07:58:01 Produced by the JSE SENS Department.
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