Uncoated Paper Mill Closure

RNS Number:6426D
Sappi Ld
15 May 2001


Boston, Massachusetts, 15 May 2001

Sappi Finalises Plans To Exit U.S. Uncoated Paper Business, Close Mobile Mill
Sappi Limited today said that it has finalised plans to exit the uncoated
paper business in the U.S. and close its paper mill in Mobile, Alabama
following a final review.   As previously announced, the shutdown of the
facility will enable Sappi Fine Paper North America to focus on its core
business, coated fine paper.

Sappi will permanently shut the three paper machines at the mill in phases
over the next several months and cease all operations at the mill.  A specific
timetable has not yet been determined.  However, the closure will be completed
by no later than mid-December 2001.  The company has made no decisions
regarding the disposal of the site or the machinery in the mill.

The mill employs approximately 500 people. Sappi will be sharing the details
of enhanced retirement and other separation benefits with its salaried
employees.  Discussions with union officials regarding the terms and
conditions of hourly employee separation will begin immediately.

The mill's main product is SpectraTech, a line of uncoated papers used in
commercial printing.  The mill also manufactures converting grades and
Lusterprint, a durable, high gloss paper used for pet food bags.  It has a
capacity of approximately 300,000 tons annually.

The company intends to produce Lusterprint at other Sappi facilities and to
exit the U.S. uncoated and converting paper segments.

Notes to editors

Sappi Fine Paper North America is a division of Sappi Limited, the largest
producer of coated free sheet papers in the world.  The group manufactures
paper in South Africa, the United Kingdom, Germany, Austria, Belgium, The
Netherlands, and in the United States at mills in Muskegon, Mich., and
Skowhegan and Westbrook, Maine.


Issued by:

Brunswick
on behalf of Sappi Limited
Tel [phone]
Fax [phone]

For further information:

Mark Thompson
Corporate Council
Tel [phone]
Mobile + 27 82 886 62 53
[e-mail]