Isin Code : ZAE000006284
Share Code : SAP
Press Release
Johannesburg, 09 October 2001
Sappi announces intention to exit non-core carbonless paper market
Transcript carbonless paper mill in Scotland to close
Sappi announced today that it is proposing to end its presence in the
carbonless paper market by closing its Transcript mill in Scotland early
next year.
According to Mr. Bill Sheffield, CEO of Sappi Fine Paper, "The decision on
Transcript is in line with Sappi's proposal to dispose of non-core,
underperforming operations in order to focus on its well-invested coated
woodfree asset base".
During the last number of years the carbonless market has been affected by
new technologies, which have replaced the need for multipart documentation
systems. This has lead to a substantial decrease in demand and over-capacity
in the carbonless market.
Sappi is investigating the sale of the Transcript brand to ensure the
continuation of supply of this well known product beyond the closure of the
mill.
A final decision on these proposals will be taken once Sappi has completed
the required consultation programme with employee representatives.
Sappi expects that the eventual closure costs will amount to US$10 million
after tax, which would be charged in the December 2001 quarter. There
should be no effect on net asset value because of previously raised
provisions. The effect on earnings would be negligible.
The Transcript mill manufactures 25,000 tons of carbonless paper annually
and employs 203 people.
ENDS
NOTES TO EDITORS:
Sappi is the world's leading producer of coated woodfree paper with
production facilities in eight countries on three continents (Europe, North
America and Africa), sales offices on five and customers in over 100
countries worldwide.
Released on behalf of Sappi by Brunswick (+27 11 442 8803)
For further information contact:
Craig Halgreen
Communication Manager
Sappi Fine Paper Europe
Tel +32 2 676 9785
Fax +32 2 676 9699
e-mail craig.halgreen@eu.sappi.com
or
Robert Hope
Director: Strategic Development
Sappi Limited Johannesburg
Tel +27 (0)11 407 8492
Fax +27 (0)11 403 1493
e-mail robho@za.sappi.com
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