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SAP - Sappi Limited - Sappi SA commences consultations regarding cost reduction and efficiency improvement initiatives 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 31 August 2009 Sappi Southern Africa commences consultations regarding cost reduction and efficiency improvement initiatives at its Kraft and Fine Paper mills in South Africa. Sappi Southern Africa today began a process of consultations with employees and trade unions at its Kraft and Fine Paper mills regarding cost reduction and efficiency improvement initiatives to ensure that the company is well positioned to take full advantage of the expected improvement in operating conditions and markets. "We will begin consultations with our employees at our Tugela, Ngodwana and Enstra mills regarding proposals for cost reduction and efficiency improvement initiatives to ensure that we meet our stated objectives of improved profitability and delivering acceptable returns," commented Jan Labuschagne, Chief Executive Officer of Sappi Southern Africa. "The proposed actions are required to successfully meet the challenges of the depressed economic conditions we are experiencing in the domestic and export markets for Fine Paper and Kraft products. These actions will not impact on our ability to meet customer demand or current commitments." he continued. "Any decision which may lead to retrenchments remains difficult and one we only consider as a last resort. We do not expect this to affect more than 400 employees across the three mills. These initiatives will ensure that we are strongly positioned to take full advantage of any improvements in our markets and in economic conditions in general," he concluded. 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 Date: 31/08/2009 14:30:03 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.
