Introducing our board and executive management team.
Non-Executive, Executive and Management
Letter to stakeholders from the Chairman and Chief Executive Officer
The last year was one of transition for Sappi as we successfully completed the two conversion projects in Southern Africa and North America to produce dissolving wood pulp.
Chief financial officer's report
These projects were of significant strategic importance, accelerating our expansion in higher margin growth businesses....Read More...
Demand from our key customers and in general is good. estimates for annual growth range from 6 – 8% for the commodity grade of dissolving wood pulp, where the majority of our production is targeted. The market remains competitive with expected additional dissolving wood pulp capacity coming to market and a more competitive viscose staple fibre market....Read More...
Duties have been imposed on manufacturers in three countries: the USA, Canada and Brazil. 75% of our dissolving wood pulp capacity is in Southern Africa, capable of supplying our customers in China.
Our strategy is therefore to aggressively position our European business as the lowest cost producer within Europe over the next two years. To achieve this we will exit high cost capacity, improve efficiencies and invest to significantly lower the cost base of our world-class mills.
The result of this will be a smaller but more profitable European business which will provide reasonable margins and produce good cash returns on a sustainable basis.
We are, in addition, working on a number of projects which include the possible disposal of surplus softwood plantations in Southern Africa which, if successful, will result in a significant further reduction in net debt. We have adequate liquidity and headroom to execute our strategy, and our debt maturity profile is sound.
Sustainability is ingrained in everything we do at Sappi.
We are a long-term business with a wide footprint encompassing forests, mills, distribution centres and customers in more than 100 countries. We take our responsibility as regards the environment, employees and stakeholders very seriously and see these responsibilities as being totally aligned with our financial goals. In short, sustainability in all its facets remains a priority.
Secondly, we have committed enthusiastic and competent people across our business that are eager to be part of a successful and growing Sappi. We will return to profitability in 2014 and will make good progress in strengthening our balance sheet. I am of the opinion that we will gain further momentum beyond 2014 as well.
When converted to viscose staple fibre, it is a natural substitute in many applications for cotton and is also a blend partner for a number of other fibres, most notably polyester....Read More...
The textile market demand is over 80 million tons of fibre with cellulosic fibres (VSF is the primary cellulosic fibre) being 6% of this demand....Read More...
It is expected to continue growing around 6% or higher in the next five years. Sappi’s DWP capacity growth is aligned to that of our major customers where we enjoy strong and mature relationships as well as long-term commitments and agreements....Read More...
Ramping up to full design rates and further de-bottlenecking will occupy our time in the immediate future.
The technical age of our modern assets and the process of continuous improvement and optimisation, as well as wood fibre yield improvements, increasing energy self-sufficiency, and supply chain optimisation are other contributors to this competitive cost position.
Our key focus, however, remains building and supporting our position in the VSF and Lyocell segments while also pursuing growth and development in those speciality segments such as MCC, ethers and acetate where Sappi pulp qualifies
Also, these are extremely competitive sectors, so we will continue to see pressure on prices and this may drive prices to the marginal costs of some competitive producers. Sappi plans to maintain full operating rates through the cycle due to its competitive cost position and by offering sustainable solutions to our customers....Read More...
Sappi is a global company focused on providing dissolving wood pulp, paper pulp and paper based solutions to its direct and indirect customer base across more than 100 countries...
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Sappi was formed in South Africa in 1936 to serve South African consumers with locally produced paper.
More on our South African operations