Sappi exits recycled paper packaging market with Cape Kraft Mill sale

23 November 2015 (Last Updated November 23rd, 2015 18:30)

South African pulp and paper company Sappi has completed divestment of its Cape Kraft Mill, which is located in Cape Town.

South African pulp and paper company Sappi has completed divestment of its Cape Kraft Mill, which is located in Cape Town.

The mill has been sold to the Golden Era Group and follows the firm's sale of the Enstra Mill, which was concluded earlier in the month.

Divestment of these two assets mark the firm's exit from the recycled paper packaging market.

"The Cape Kraft mill annually recycles 67,000t of waste paper to generate 60,000t of paper."

Sappi has raised around R600m ($42.7m) in total from the sale of the Cape Kraft and Enstra mills.

The Cape Kraft mill annually recycles 67,000t of waste paper to generate 60,000t of paper, the firm said.

The facility is equipped with an offline coater, which facilitates coating papers from as light as 46g/m² to as heavy as 350g/m².

The installed equipment at the mill offers corrugators, carton and bag/sack manufacturers multiple options of barrier and clay-coated papers.

Products manufactured at the mill include Cape Fluting and Cape Liner, which are used to make corrugated boxes and industrial cases respectively.

Divestment of the mills is in line with the company's intention to focus on its commercial timber operations and further develop its dissolving wood pulp capacity at Ngodwana and Saiccor Mills.

Sappi is also investing to improve its containerboard capacity at its Tugela and Ngodwana Mills, its tissue and office paper capacity at Stanger Mill and its newsprint capacity at Ngodwana Mill.