FIT FOR THE FUTURE With rationalisation in Europe and expansion in South Africa as well as continuing product innovation, Sappi is boosting its performance despite rising input costs
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lobal paper and pulp group Sappi employs 15,600 people worldwide, and their manufacturing operations on four continents have an annual capacity of 6.6 million tons of paper, 3.3 million tons of paper pulp and 800,000 tons of chemical cellulose. Sappi works in over 100 countries to provide customers with sustainable paper, paper-pulp and chemical cellulose products and related services and innovations. The market-leading range of paper-products includes coated fine papers used by printers, publishers and corporate end-users and casting release papers used by suppliers to the fashion, textiles, automobile and household industries. In the South-
ern African region the portfolio includes newsprint, uncoated graphic and business papers, premium quality packaging papers, paper grade pulp and chemical cellulose. The chemical cellulose products are used worldwide by converters to create viscose fibre, acetate tow, pharmaceutical products and other consumer products. In March 2011 Sappi released a positive statement with the publication of their second quarter results: “Operating profit for the quarter more than doubled compared to a year earlier (US$54 million) and on a per week basis was at the same level as our first financial quarter ended December 2010. The operating performance of each of our
regional businesses improved when compared to a year earlier, and in particular the fine paper business continued its improving trend, with operating profit increasing 65 per cent compared to the equivalent quarter last year and 25 per cent compared to the quarter ended December 2010. Sales for the quarter increased to US$1.8 billion, up 16 per cent compared to the equivalent quarter last year.”
Cost savings across Europe
Raw material increases affected Sappi’s performance in Europe, which represents 55 per cent of group sales, and where more than half of the pulp is being bought in. The
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