Business News

Intended Closure of Sappi Usutu Pulp Mill and Restructuring of Forestry Business in Swaziland in Response to Market Conditions and Forest Fire Damage

Friday 30. October 2009 - 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.