SAPPI to restructure forestry business in the Kingdom of Swaziland

SAPPI: Intended closure of Sappi Usutu Pulp Mill and restructuring of forestry business in the Kingdom of Swaziland in response to market conditions and forest fire damage.

Intended closure of Sappi Usutu Pulp Mill and restructuring of forestry business in the Kingdom of Swaziland in response to market conditions and forest fire damage

In response to adverse market conditions, as well as the cumulative severe impact of fire damage over the past few years, in particular the fires of August 2008 which destroyed 40% of the Usutu timber crop, it has become apparent that the Sappi Usutu Pulp Mill is no longer sustainable.

Sappi has therefore today announced that it will begin the process of consulting with staff and all other relevant stakeholders regarding its intention to close the Usutu Pulp Mill on 31 January 2010. With the closure of the mill Sappi would also exit the unbleached softwood flash-dried pulp market served by Usutu Pulp Mill.  The mill has a capacity of 190,000 tonnes annually.

Sappi will continue to seek future beneficiation opportunities for the profitable utilisation of the Usutu forests. This could include the introduction
of new investors.

The Sappi Usutu Pulp Company directly employs around 600 people.
                                               
Issued by:
Brunswick South Africa on behalf of Sappi Limited
Tel + 27 11 502 7300
Fax + 27 11 268 5747

For further information contact:

Shane Perrow
General Manager
Sappi Usutu Pulp Company
Tel +268 452 5110
Mobile +268 602 0303
shane.perrow (at) sappi.com          

André F Oberholzer
Group Head Corporate Affairs
Sappi Limited
Tel +27 11 407 8044
Mobile  +27 83 235 2973
andre.oberholzer (at) sappi.com