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SAP - Sappi Limited - Sappi Finland I Oy begins consultations at Kangas mill in response to market conditions and lower demand in coated magazine paper Sappi Limited (Registration number 1936/008963/06) (Incorporated in the Republic of South Africa) Share code: SAP ISIN: ZAE000006284) ("Sappi" or the "Company") Press Release 22 October 2009 Sappi Finland I Oy begins consultations at Kangas mill in response to market conditions and lower demand in coated magazine paper In response to the reduction in European consumption of coated magazine paper arising from the global recession it is apparent that the industry is experiencing overcapacity. Sappi has taken a substantial amount of commercial downtime since the beginning of the year in response to a reduction in demand. Sappi Finland I Oy has today announced that it will enter into a consultation process with its Kangas mill employee representatives. The aim of this process is to identify the best way of improving company profitability, which may include a full closure of Kangas mill. The continued level of downtime is no longer considered viable and it is therefore necessary to review production capacity. Possible redundancies would be implemented by the end of the year 2009. The Sappi Finland I Oy`s, Kangas site employs around 150 employees. Sappi employs around 800 people in Finland. In the event that the Kangas mill ceases production the Galerie Silk range would be supplied to customers from the Sappi Lanaken mill in Belgium. Sappi would also launch a complementary grade, Galerie Fine Silk, from Sappi Finland I Oy`s, Kirkniemi mill thereby widening the customer offer of its coated magazine paper range while ensuring that there is no supply interruption. Kangas mill, has the capacity to produce 210,000 tonnes of coated magazine paper annually. The consultation does not concern Sappi Finland I Oy`s Kirkniemi mill and its Sales Office. END Issued by: Brunswick South Africa on behalf of Sappi Limited Tel + 27 11 502 7300 Fax + 27 11 268 5747 For further information contact: Anders Ek Martti Savelainen Mill Director Mill Director Sappi Finland I Oy Sappi Finland I Oy Kangas Mill Kirkniemi Mill Tel +358 1046 45261 Tel + +358 10 464 2475 Mobile +358 50 307 1103 Mobile +358 505 987 621 Email :anders.ek@sappi.com Email: martti.savelainen@sappi.com Claudia Hammerich Andre F Oberholzer Manager Corporate Communications Group Head Corporate Affairs Sappi Fine Paper Europe Sappi Limited Tel: +32 2 676 97 84 Tel: +27 11 407 8044 Mobile: +32 472 61 89 66 Mobile: +27 83 235 2973 claudia.hammerich@sappi.com andre.oberholzer@sappi.com Date: 22/10/2009 13:00:01 Supplied by www.sharenet.co.za Produced by the JSE SENS Department. The SENS service is an information dissemination service administered by the JSE Limited (`JSE`). The JSE does not, whether expressly, tacitly or implicitly, represent, warrant or in any way guarantee the truth, accuracy or completeness of the information published on SENS. The JSE, their officers, employees and agents accept no liability for (or in respect of) any direct, indirect, incidental or consequential loss or damage of any kind or nature, howsoever arising, from the use of SENS or the use of, or reliance on, information disseminated through SENS.
