SAPPI LIMITED - Sappi concludes sale of Cape Kraft Mill; invests to increase energy self-sufficiency at Tugela and Saiccor Mills

Sappi concludes sale of Cape Kraft Mill; invests to increase energy self-sufficiency at Tugela and Saiccor Mills

Sappi Limited
(Incorporated in the Republic of South Africa)
Registration number: 1936/008963/06
JSE share code: SAP
ISIN code: ZAE000006284
(‘Sappi’ or ‘the Company’)



Sappi concludes sale of Cape Kraft Mill; invests to increase energy self-
sufficiency at Tugela and Saiccor Mills

Further to the announcements of March and July 2015 regarding the sale of Sappi’s Cape
Kraft Mill in Milnerton, Cape Town, Sappi wishes to confirm that all conditions have been met
and that the mill has been transferred today, 23 November 2015, to the new owners, the
Golden Era Group. The sale is not categorisable in terms of section 9.5 of the JSE Listings
Requirements.


The sale of Cape Kraft Mill, along with the sale of Enstra Mill which was completed earlier
this month, signals Sappi’s exit from the recycled paper packaging market, a market where
Sappi did not enjoy any competitive advantage. Sappi Southern Africa in future will focus on:
its commercial timber operations; enhancing its already world-leading dissolving wood pulp
capacity at Ngodwana and Saiccor Mills; investing in its containerboard capacity at its Tugela
and Ngodwana Mills; its tissue and office (copy) paper capacity at Stanger Mill; its newsprint
capacity at Ngodwana Mill; providing the South African market with a worldclass range of
coated, uncoated and speciality papers made at Sappi’s European mills, as well as,
increasing its by-products offering including Lignosulphonate from Tugela Mill.




During the course of 2016, Sappi will invest in projects to increase the company’s energy
self-sufficiency through the installation of new turbines at the Tugela and Saiccor Mills. The
turbines will produce approximately 23MW of power and contribute to increasing Sappi
Southern Africa’s self-sufficiency from 56% to 72% by the end of 2016. This will help mitigate
against any future power shortages but more importantly will lower Sappi’s energy costs.
                                                                          Page 2 of 2



As mentioned previously the combined proceeds from the sales of Enstra and Cape Kraft
Mills amounts to just under R600m.



 For further information              Issued by
 André F Oberholzer                   Brunswick
 Group Head Corporate Affairs         on behalf of Sappi Limited
 Sappi Limited                        Tel + 27 (0) 11 502 7300
 Tel +27 (0)11 407 8044
 Mobile +27 (0)83 235 2973
 Andre.oberholzer@sappi.com

 Elijah Masondo
 Corporate Communications Manager
 Sappi SA
 Tel + 27 (0)11 407 8478
 Elijah.Masondo@sappi.com




NOTE TO EDITORS:

Sappi Limited (JSE: SAP), is a global company focused on dissolving wood pulp, paper pulp
and paper-based solutions to our direct and indirect customer base in over 160 countries
around the world. Headquartered in Johannesburg, South Africa, with over 13,000
employees and manufacturing operations on three continents in seven countries and group
sales of US$6 billion. Learn more about Sappi at www.sappi.com.



23 November 2015
Sponsor: UBS South Africa (Pty) Ltd

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