SAPPI LTD (SAP) 6-K

14. MATERIAL ACQUISITIONS AND DISPOSALS BY SAPPI
Over the last three years Sappi has reorganised it operations and closed capacity where acceptable returns have not been achieved. In 2005 the Sappi Group
closed the Muskegon Mill Paper Machine PM5 in the United States of America with a capacity of 105,000 tonnes of coated fine paper and mothballed
Muskegon’s pulp mill. In 2006 the Nash Mill in the United Kingdom was closed. It had a capacity of 30,000 tonnes of graphic fine paper. In August 2008
Sappi announced that it is contemplating the cessation of production at its Blackburn Mill in the United Kingdom with a capacity of 120,000 tonnes of graphic
paper and intends to cease production from the Maastricht Mill PM5 which produces 60,000 tonnes of speciality paper. On Monday 22 September 2008
agreement was reached between Blackburn Mill management, and Trade Union representatives regarding the future of the Blackburn Mill. Sappi and the
Union agree that, unless a buyer who has no interest in the graphic coated business can be found before the end of the consultation period which runs until
November 12th, the Blackburn Mill will close and all employees will be made redundant, apart from any employees for whom suitable alternative
employment can be found. Most employees will leave through redundancy on Wednesday 12 November 2008. The agreement specifies redundancy terms and
includes provisions for outplacement and training support for all employees, to ensure that people have the best possible opportunity to secure new
employment. Blackburn Management team has started to plan the run down of the Mill in an orderly way. Alongside this, Sappi Fine Paper Europe will
inform customers about the agreement and the likely closure of Blackburn Mill as a production facility in order to find alternatives within Sappi to meet the
needs of these customers as soon as possible.
Sappi and its Subsidiaries have not acquired or disposed of securities in or of the business undertaking of any other company in consequence of which that
company of business undertaking will become or cease to become a subsidiary of or part of the business of Sappi, in respect of each of the preceding three
years other than that subject of the Circular to which these revised listing particulars form part.
This Circular does not coincide, directly or indirectly, with the acquisition by Sappi or any of its Subsidiaries of securities in or the business undertaking of
any company, other than that of the Acquired Business.
This Circular does not coincide with any acquisitions or disposals by Sappi or any of its Subsidiaries, of securities in or of the business undertaking of any
other company in respect of each of the preceding three years other than the subject of the Circular to which these revised listing particulars form part.
Sappi and its Subsidiaries have not had any change of controlling shareholders at its Subsidiary level over the last five years.
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