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SAPPI LIMITED - Sappi Alfeld Mill to refocus production to meet strong growth in demand.

Release Date: 25/09/2012 09:00
Code(s): SAP     PDF:  
Wrap Text
Sappi Alfeld Mill to refocus production to meet
strong growth in demand.

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”)



Sappi Alfeld Mill to refocus production to meet strong growth in demand from the
Release Liner and Flexpack paper markets. Coated paper production to be moved
to other Sappi Mills in Europe.


In response to strong growth and positive market forecasts for the packaging market,
Sappi Fine Paper Europe has begun the process of converting its Sappi Alfeld Mill in
Germany to focus exclusively on producing one-sided coated paper for packaging, labels
and technical applications. The project will take 12 months to complete.

At the same time, Sappi will actively manage its graphic paper capacity by transferring
the current coated paper production of the Sappi Alfeld Mill to other Sappi Mills in Europe
in close consultation with these customers. This action will further improve Sappi’s cost
position in coated woodfree paper in Europe and elsewhere.

The strong growth and improved margins in this market are due to the growth in the
demand for paper packaging and a lack of standardization; high degree of customization;
and the long qualification times imposed by customers. Sappi has also been successful
in the Fine Paper Europe development of innovative and sustainable solutions for this
market in close cooperation with end-use customers and converters.

Commenting on the conversion, Sappi Fine Paper Europe CEO Berry Wiersum said:
“Our decision is in line with the Sappi group strategy to invest in higher growth and higher
margin businesses. In addition, it will further improve Sappi’s cost position in coated
woodfree paper in Europe and elsewhere.”

The decision will entail the conversion of paper machine number 2 (PM2) from producing
150,000 tons of coated fine paper per annum to producing 135,000 tons per annum of
speciality paper. Paper machines 1, 3, 4 and 5 at Sappi Alfeld Mill already produce jointly
165,000 tons of speciality paper and board per year.

Once the conversion is complete, the Sappi Alfeld Mill will benefit from increased margins,
improved quality, increased efficiencies on raw material consumption and an optimized
fixed cost profile. The mill will become the biggest and lowest cost producer of these one-
sided coated speciality grades globally; with the converted PM2 the fastest and most
productive speciality machine in the world. The PM2 product range will focus on one-
sided coated grades from 40 – 180gsm for packaging, technical purposes, liner and label
applications.

For further information

Mat J.H. Quaedvlieg
Director Manufacturing
Sappi Fine Paper Europe
Sappi Europe S.A.
154 Chaussée de la Hulpe
B-1170 Brussels
Tel +32 (0)2 67 69 703
Mobile +32 (0)495 588 703
Mat.Quaedvlieg@sappi.com

Claudia Hammerich
Corporate Communications Manager
Sappi Fine Paper Europe
Sappi SA Bruxelles
154 Chaussée de la Hulpe
B-1170 Brussels
Tel: +32 2 6769 784
Mobile: +32 472 618 966
Claudia.Hammerich@sappi.com



Brussels, 25 September 2012

Sponsor: UBS South Africa (Pty) Ltd


ENDS
About Sappi
Sappi Fine Paper Europe is the leading European producer of coated fine paper used in premium
magazines, catalogues, books and high-end print advertising. Headquartered in Brussels, Belgium,
Sappi Fine Paper Europe is recognised for innovation and quality. Its graphic paper brands include
Magno, Quatro, Royal, Galerie and GalerieArt ranges. Algro, Fusion, Leine and Parade are the brands
for speciality labelling, topliner, packaging papers and boards. Jaz is the paper brand for digital printing.
Sappi papers are produced in mills accredited with ISO 9001 and ISO 14001 certification and EMAS
registration for all our mills in the EU. SFPE’s mills hold chain-of-custody certification under the Forest
Stewardship Council (FSC) and/or the Programme for the Endorsement of Forest Certification (PEFC)
schemes.
Sappi Fine Paper Europe is a division of Sappi Limited (NYSE, JSE), a global company headquartered
in Johannesburg, South Africa, with over 14,900 employees and manufacturing operations on four
continents in 9 countries, sales offices in 50 countries, and customers in over 100 countries around the
world. Learn more about Sappi at www.sappi.com.

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