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SAP - Sappi Limited - Sappi Fine Paper Europe contemplates cessation of production at Blackburn Mill and on PM 5 at Maastricht Mill Sappi Limited Registration Number 1936/008963/06 (Incorporated in the Republic of South Africa) Share Code: SAP ISIN Code: ZAE000006284 Press Release 05 August 2008 Sappi Fine Paper Europe contemplates cessation of production at its Blackburn Mill and intends to cease production from Paper Machine PM5 at its Maastricht Mill in response to overcapacity and unrelenting input cost pressure As a result of continued overcapacity in the European Coated Fine Paper market, it has not proved possible to recover the sharply increased costs of raw material and energy over recent years. Sappi has therefore undertaken a review of its European production activities. Despite our best efforts to curb costs, Blackburn Mill and paper machine no 5 at Maastricht Mill have been unable to generate acceptable returns. Consequently, Sappi has entered into a consultation process with employee representatives at both facilities with a view to cease production at Blackburn Mill and PM 5 at Maastricht Mill. The sales office for Coated Fine Paper in the UK will continue operations as will the Specialities Sales and Marketing Organisation. In the event that these production lines do cease to produce then customers will be offered comparable products and services from other Sappi sites in Europe and no supply interruption would be anticipated. Blackburn has the capacity to produce 120,000 tonnes of Graphic coated fine paper annually. Paper machine PM5 at Maastricht has the capacity to produce 60,000 tonnes of speciality paper annually. If the closure of Blackburn mill and PM 5 at the Maastricht mill were to happen and as a result of reallocation of products, Sappi would reduce its Graphic coated fine paper capacity by 190,000 tonnes 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: Andre F Oberholzer Group Head Corporate Affairs Sappi Limited Tel: +27 11 407 8044 Mobile: +27 83 235 2973 Andre.oberholzer@sappi.com Claudia Hammerich Corporate Communications Sappi Fine Paper Europe Tel: +32 267 69784 Mobile: +32 472 61866 Claudia.hammerich@sappi.com Date: 05/08/2008 14:00:00 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.
