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SAP - Sappi Limited - Sappi Fine Paper Europe envisages the closure of its Biberist Mill in Switzerland in response to market conditions and sustained increases in input costs and begins consultations SAPPI LIMITED Registration Number 1936/008963/06 (Incorporated in the Republic of South Africa) JSE Code: SAP ISIN: ZAE000006284 NYSE Code: SPP EMBARGO UNTIL THURSDAY 31 March, 12:00 a.m. CET Press Release Brussels, 31 March 2011 Sappi Fine Paper Europe envisages the closure of its Biberist Mill in Switzerland in response to market conditions and sustained increases in input costs and begins consultations As a result of continued overcapacity in the European Coated and Uncoated Fine Paper markets, 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 and gain better margins, Biberist Mill has been unable to generate acceptable returns. Consequently, SFPE has today announced that it will enter into a consultation process with its Biberist mill employee representatives and social partners. The aim is to identify the best way of improving SFPE`s profitability, which may also include a full closure of Biberist mill. The continued unrelenting increases in input costs and the excessive local energy prices, combined with the overcapacity in the European market have led to unacceptable returns for Sappi Fine Paper Europe and it therefore became necessary to review production capacity. In the event that production at Biberist Mill does cease, customers for the coated fine paper products would be offered comparable products and services from other Sappi sites in Europe and no supply interruption would be anticipated. The uncoated product lines consisting of the Cento family of brands would be discontinued. The sales office in Switzerland will continue operations. If the closure of Biberist mill were to occur, Sappi would reduce its coated fine paper capacity by 435,000 tons and its uncoated fine paper capacity by 65,000 tons. Should the mill close, approximately 550 employees would be affected. 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: With regard to the decision of Sappi Fine Paper Europe: Mat J.H. Quaedvlieg Director Manufacturing Sappi Fine Paper Europe Tel +32 (0)2 67 69 703 Mobile +32 (0)495 588 703 Mat.Quaedvlieg@sappi.com With regard to next operational steps in the mill: Nicolas Muhlemann Mill Director Sappi Fine Paper Europe - Biberist mill Tel.: +41 (0)32 671 31 80 E-mail: nicolas.muehlemann@sappi.com Coporate Communications 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: 31/03/2011 12:00:01 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.
