Sappi announces intention to close Sappi Usutu Mil

 

TIDMSAZ 
 
RNS Number : 6492B 
Sappi Ld 
30 October 2009 
 
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|                                                           | Southern Africa     | 
|                                                           |                     | 
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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 the Kingdom of 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              |          André F Oberholzer           | 
|            General Manager            |     Group Head Corporate Affairs      | 
|      Sappi Usutu Pulp Company         |            Sappi Limited              | 
|          Tel [phone]            |          Tel [phone]          | 
|        Mobile [phone]           |      Mobile    [phone]        | 
|        [e-mail]         |      [e-mail]       | 
|                                       |                                       | 
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This information is provided by RNS 
            The company news service from the London Stock Exchange 
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