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SAP
SAVVI
SAP - Sappi - Sappi Fine Paper Europe announces cessation of coated graphic
paper production at its Biberist mill
Sappi Limited
(Registration number 1936/008963/06)
(Incorporated in the Republic of South Africa)
Share code: SAP ISIN: ZAE000006284); NYSE code SPP
("Sappi" or the "Company")
Press Release
19 May 2011
Sappi Fine Paper Europe announces cessation of coated graphic paper production
at its Biberist mill
Brussels - Sappi Fine Paper Europe announced today that it will cease production
of coated graphic paper at its Biberist paper mill in Switzerland. After due and
thorough consideration during the consultation process with local employees
ending on 16 May 2011 the definitive decision to discontinue the coated graphic
paper production was taken. It is anticipated that production will cease by the
end of July. The consultation was conducted with good co-operation between all
parties involved, complying with the applicable Swiss legal framework.
Sappi continues to investigate possibilities for the sale and alternative
industrial use of the site. Promising leads are being followed up, with a clear
emphasis on those which generate the maximum employment opportunities. To give
potential acquirers interested to convert the mill to alternative products the
opportunity to complete a transaction, a decision regarding the future of paper
machine No 6 (PM6) and paper machine No 9 (PM9) as well as associated support
departments has been postponed. However, those employees working on paper
machine No 8 (PM8) and associated people in finishing and supporting departments
will be served notice of redundancy by the end of May. A social plan will
specify redundancy terms, including provisions for outplacement and training
support for all affected employees. The social plan will ensure that the
affected employees are provided the best possible opportunities to secure new
jobs.
In consultation with and supported by the Cantonal government of Solothurn, a
decision concerning the remaining employees will be made by the end of July.
The Biberist Mill employs around 550 employees in total.
"We recognise this is a very difficult and unfortunate outcome for those
employees concerned, their families and the communities surrounding the mill,"
commented Berry Wiersum, CEO of Sappi Fine Paper Europe. "Unfortunately this
action was unavoidable and essential given the continued overcapacity and
sustained increases in input costs."
Volumes produced at the mill will be transferred to other Sappi sites.
Production of the uncoated Cento brand will continue unless a suitable new owner
for the mill is not found by the end of July. There will be no supply
interruption of coated paper to customers during the transfer of production.
With the cessation of coated graphic paper production at Biberist mill, Sappi
will reduce its coated graphic paper capacity by 500 000 tons per annum.
ENDS
Issued by:
Brunswick South Africa on behalf of Sappi Limited
Tel + 27 11 502 7300
Fax + 27 11 268 5747
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 Muehlemann
Mill Director
Sappi Fine Paper Europe -
Biberist Mill
Tel.: +41 (0)32 671 31 80
Nicolas.Muehlemann@sappi.com
Coporate Communications
Claudia Hammerich Andre F Oberholzer
Manager Corporate Group Head Corporate Affairs
Communications Sappi Limited
Sappi Fine Paper Europe Tel: +27 11 407 8044
Tel: +32 2 676 97 84 Mobile: +27 83 235 2973
Mobile: +32 472 61 89 66 Andre.Oberholzer@sappi.com
Claudia.Hammerich@sappi.com
Date: 19/05/2011 14:29:00 Produced by the JSE SENS Department.
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