Sappi to inject R7bn in mill expansion, production in KZN

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DURBAN, July 23 – South Africa paper and packaging producer, Sappi Limited, on Monday, announced a total of R7.7 billion capital investments at its Saiccor Mill in Umkomaas, south of Durban is planned for expansion of the plant, maintenance and upgrade projects over the next five years.

The investments include a R2.7 billion capacity expansion project and a planned R5 billion over five years in various continuous improvement initiatives and upgrade projects.

Steve Binnie, Sappi group chief executive, said that the company had seen significant benefits in serving its global customers from its South African operations.

“Sappi had invested some R4.3 billion from 2012 to 2018 to increase its dissolving pulp capacity in South Africa. This global market has shown such strong growth that Sappi will again increase capacity in South Africa by investing R2.7 billion at Saiccor during 2018 and 2019,” Binnie said.

Sappi said that the planned investment would increase production of dissolving wood pulp from 800,000 tons a year of elemental chlorine free dissolving wood pulp per annum, most of which is for the export market, to 890,000 tons a year. (ANA)