Sappi combines Southern African paper and packaging businesses

JSE-listed Sappi announced on Thursday that its Southern African unit would consolidate its paper and paper packaging businesses to strengthen its ability to meet customer requirements and to develop new business opportunities.

Sappi Fine Paper South Africa and Sappi Kraft would merge to become Sappi Paper and Paper Packaging South Africa, with Sappi Southern Africa CEO Jan Labuschagne to assume direct responsibility for this new division.

“Our global strategy and commitment is to move ever closer to our customers to ensure we better meet their requirements. Combining the paper and paper packaging businesses thus makes strategic sense and will contribute to the group delivering on its strategic priorities and profitability objectives,” Sappi group CEO Ralph Boëttger said.

Sappi Kraft MD Albert Lubbe would retire from this position at the end of July.

A former MD of Sappi Forests and of Sappi Fine Paper South Africa, Dinga Mncube, has been appointed as executive director of marketing for the new division, while Pat McGrady has been appointed as the manufacturing director of the new division.

Further, Sappi Saiccor MD Alan Tubb would retire from his position at the end of the year and would be succeeded by Gary Bowles, who would take over as MD of the renamed Sappi Chemical Cellulose division as from January 1.

“By putting in place early the succession plan for our chemical cellulose business we are ensuring that there will be no disruption in this important and growing segment of our business,” said Labuschagne.