SAPPI LTD (SAP) 6-K

The map below sets out the locations of the mills and machines being acquired and the comparative location of existing Sappi mills in Europe:
Pan-European Coated Paper Assets
Annual production capacity (kt)
Sappi Europe Mills Paper Pulp
1 Alfeld, Germany 360 120
2 Blackburn(1), UK 120
3 Ehingen, Germany 250 140
4 Gratkorn, Austria 860 250
5 Lanaken, Belgium 490 170
6 Maastricht(1), Netherlands 320
7 Nijmegen, Netherlands 240
TOTAL 2,640 680
Annual production capacity (kt)
M-real Mills Paper Pulp
A Biberist, Switzerland 505
B Kangas, Finland 210
C Kirkniemi, Finland 740 338
D Stockstadt, Germany 420 160
Capacity acquired 1,875 498
E 1 Gohrsmühle, Germany 370
E 2 Hallein, Austria 310 170
F 1 Husum PM8, Sweden 285
F 2 Äänekoski PM2, Finland 200
TOTAL 3,040 668
2 + 6 Planned to be shut down (Note 1)
F 1 & F 2:Will remain in M-Real's ownership and continue as
contract producers for Sappi under long term supply
agreements.
E 1 & E 2:Acquisition of know-how, brands, order books, customer lists,
intellectual property and goodwill. M-Real announced plans that will
result in reduction of coated woodfree capacity by 0.6 million tons
per annum.
Notes
1. Blackburn & Maastricht PM5 machine to be closed with a combined reduction in capacity of 190Kt
Source: Sappi and M-real information
4.3. Brands
The Acquired Business includes well known and reputable brands in the coated magazine paper and commercial printing paper markets. Sappi expects that
the acquisition of these brands will allow Sappi the opportunity of retaining the Acquired Business’s existing customer base and consolidate its footprint
throughout Europe and export markets. The Galerie family of brands is highly valued, and Galerie Fine, a high quality mechanical fibre containing product,
has been one of the most successful product developments in the industry in recent years. The Transaction will add to the Sappi stable of brands the high end
“Furioso” product and the various coated wood free brands. Further, Sappi expects M-real’s strong brand recognition to bolster Sappi’s ability to derive
financial benefits from the Transaction.
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