| Thu 31 Mar 2011, 12:00 | | SAP - Sappi Limited - Sappi Fine Paper Europe envisages the closure of its |
|
SAP
SAVVI
SAP - Sappi Limited - Sappi Fine Paper Europe envisages the closure of its
Biberist Mill in Switzerland in response to market conditions and sustained
increases in input costs and begins consultations
SAPPI LIMITED
Registration Number 1936/008963/06
(Incorporated in the Republic of South Africa)
JSE Code: SAP
ISIN: ZAE000006284
NYSE Code: SPP
EMBARGO UNTIL THURSDAY 31 March, 12:00 a.m. CET
Press Release
Brussels, 31 March 2011
Sappi Fine Paper Europe envisages the closure of its Biberist Mill in
Switzerland in response to market conditions and sustained increases in input
costs and begins consultations
As a result of continued overcapacity in the European Coated and Uncoated Fine
Paper markets, 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 and gain better margins, Biberist Mill
has been unable to generate acceptable returns. Consequently, SFPE has today
announced that it will enter into a consultation process with its Biberist mill
employee representatives and social partners. The aim is to identify the best
way of improving SFPE`s profitability, which may also include a full closure of
Biberist mill. The continued unrelenting increases in input costs and the
excessive local energy prices, combined with the overcapacity in the European
market have led to unacceptable returns for Sappi Fine Paper Europe and it
therefore became necessary to review production capacity.
In the event that production at Biberist Mill does cease, customers for the
coated fine paper products would be offered comparable products and services
from other Sappi sites in Europe and no supply interruption would be
anticipated. The uncoated product lines consisting of the Cento family of brands
would be discontinued. The sales office in Switzerland will continue
operations.
If the closure of Biberist mill were to occur, Sappi would reduce its coated
fine paper capacity by 435,000 tons and its uncoated fine paper capacity by
65,000 tons.
Should the mill close, approximately 550 employees would be affected.
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:
With regard to the decision of Sappi Fine Paper Europe:
Mat J.H. Quaedvlieg
Director Manufacturing
Sappi Fine Paper Europe
Tel +32 (0)2 67 69 703
Mobile +32 (0)495 588 703
Mat.Quaedvlieg@sappi.com
With regard to next operational steps in the mill:
Nicolas Muhlemann
Mill Director
Sappi Fine Paper Europe - Biberist mill
Tel.: +41 (0)32 671 31 80
E-mail: nicolas.muehlemann@sappi.com
Coporate Communications
Claudia Hammerich Andre F Oberholzer
Manager Corporate Communications Group Head Corporate Affairs
Sappi Fine Paper Europe Sappi Limited
Tel: +32 2 676 97 84 Tel: +27 11 407 8044
Mobile: +32 472 61 89 66 Mobile: +27 83 235 2973
claudia.hammerich@sappi.com andre.oberholzer@sappi.com
Date: 31/03/2011 12:00:01 Produced by the JSE SENS Department.
The SENS service is an information dissemination service administered by the
JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or
implicitly, represent, warrant or in any way guarantee the truth, accuracy or
completeness of the information published on SENS. The JSE, their officers,
employees and agents accept no liability for (or in respect of) any direct,
indirect, incidental or consequential loss or damage of any kind or nature,
howsoever arising, from the use of SENS or the use of, or reliance on,
information disseminated through SENS.
