Sappi Limited operates as a pulp, paper, and dissolving wood pulp solutions company. Strategy The company’s strategy is to grow its Specialised Cellulose business. Woodfree Paper The company’s woodfree paper activities are divided into coated and uncoated woodfree paper and speciality paper grades. Coated Woodfree Paper: Major end uses of coated woodfree paper include magazines, catalogues, brochures, annual reports and commercial printing. Paper that is coated on one side is used in special applications, such as consumer product and mailing label applications. The company’s North American sheet volume is largely influenced by brochure and general commercial printing activities using mainly sheet-fed offset lithographic printing processes, which are not particularly seasonal. Reels volume is heavily influenced by catalogue and magazine activity, which is strongest in the third and fourth calendar quarters, text book activity. These printers principally use heat-set Web offset printing processes. The company produces coated woodfree and coated mechanical paper used in books, brochures, magazines, catalogues, and other print applications. Uncoated Woodfree Paper: Uncoated woodfree paper is used for bond/writing and offset printing papers, photocopy papers, writing tablets (legal pads), speciality lightweight printing paper (bibles) and thin paper. Speciality Paper: The high value-added speciality paper markets, in which Sappi Fine Paper operates, generally follow trends in the respective end use sectors in addition to changes in production capacity, output levels and cyclical changes in the world economy. Mechanical Paper Products Coated Mechanical Paper: Coated mechanical paper is used mainly for magazines and, among other things, for brochures, catalogues, advertising materials and promotional products. Newsprint: The Ngodwana mill, situated in South Africa, produces newsprint. The company produces newsprint, uncoated graphic and business papers, premium quality packaging papers, a range of coated speciality papers and a range of paper grade pulp. Paper Packaging Products The company supplies paper packaging solutions in southern Africa, which it produces locally at its Cape Kraft, Tugela, and Ngodwana mills. These products are sold predominantly to customers in southern Africa with products destined for export markets. Paper Packaging: The company provides a range of packaging solutions to the industrial, agricultural and fast moving consumer goods industries. This includes containerboard products and multi-walled shipping sacks for use in the transport of goods, as well as grocery bags for use by the end consumer. Pulp The company produces chemical cellulose, as well as a range of paper pulp grades, including mechanical pulp used in newsprint, bleached kraft pulp, and bleached sulphite pulp. Timber Products The company’s timber products operations are concentrated in South Africa and consist of sawn timber for the building industry and components for the furniture and packaging industry. Segments The company has three reportable segments, Sappi Fine Paper North America, Sappi Fine Paper Europe, and Sappi Southern Africa. Sappi Fine Paper consists of the reporting segments Sappi Fine Paper North America and Sappi Fine Paper Europe. The company operates 17 pulp and paper mills, with an aggregate annual paper, pulp and chemical cellulose production capacity of approximately 6 million tons, approximately 2.9 million tons, and approximately 0.8 million tons, respectively. The company also operates a trading network, called Sappi Trading, for the international marketing and distribution of its products worldwide in areas outside its core operating segments of Sappi Fine Paper North America, Sappi Fine Paper Europe, and Sappi Southern Africa. Sappi Fine Paper Sappi Fine Paper has an aggregate annual paper and pulp production capacity of 4.9 million tons and 2.2 million tons respectively, at 11 paper and related paper pulp mills in North America and Europe. Sappi Fine Paper North America: Sappi Fine Paper North America produces and supplies coated woodfree
sappi limited (SAP:Johannesburg)
48 Ameshoff Street
Phone: 27 11 407 8111
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