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SAP - Sappi Limited - Sappi Fine Paper Europe announces final closure of

Release Date: 20/07/2011 12:45
Code(s): SAP
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SAP - Sappi Limited - Sappi Fine Paper Europe announces final closure of Biberist Mill in Switzerland Sappi Limited (Registration number 1936/008963/06) (Incorporated in the Republic of South Africa) Share code: SAP ISIN: ZAE000006284); NYSE code SPP ("Sappi" or the "Company") Press Release 20 July 2011 Sappi Fine Paper Europe announces final closure of Biberist Mill in Switzerland After an exhaustive search for possible purchasers for its Biberist mill in Switzerland, Sappi Fine Paper Europe has today announced that it has been unsuccessful in its attempts to find a suitable acquirer to allow continued operations and employment at the mill. The company has therefore decided on the complete closure of the mill. Production at paper machines 8 and 9 has already ceased and production on the uncoated paper line will halt at the end of August. Redundancy notices to all remaining employees affected by the closure are being sent out today. "The process to find a suitable purchaser included numerous discussions with interested parties and involved close cooperation between local mill management and Sappi`s European and global management teams to make the purchase as attractive as possible," said Sappi Fine Paper Europe CEO, Berry Wiersum. "Unfortunately several industry players quickly withdrew their interest and we were unable to come to an agreement with any other interested parties." Sappi has agreed a social plan with the employees and the labour unions. Meanwhile Sappi continues its search for a new owner for the site. Approximately 550 employees in total will be affected by the closure, of which 134 have been given notice earlier. The volumes produced at the mill will be transferred to other Sappi sites in Europe. There will be no supply interruption to customers during the mill closure and transfer of production. With the cessation of coated graphic paper production at Biberist mill, Sappi will reduce its graphic paper capacity by 500 000 tons per annum. 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: Mat J.H. Quaedvlieg Nicolas Muhlemann Director Manufacturing Mill Director Sappi Fine Paper Europe Sappi Fine Paper Europe - Biberist mill Tel +32 (0)2 67 69 703 Tel.: +41 (0)32 671 31 80 Mobile +32 (0)495 588 703 E-mail: Nicolas.Muehlemann@sappi.com Mat.Quaedvlieg@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: 20/07/2011 12:45:01 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.

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