SAPPI LTD (SAP) 6-K

Other than described above, there are no other material contracts entered into at any time and containing an obligation or settlement that is material to the
Sappi Group at the date of this Circular.
17. MATERIAL CHANGES RELATING TO SAPPI
There have been no material changes in the financial position of the Sappi Group and its subsidiaries since the end of the last financial period, other than as set
out in this Circular.
Over the last three years Sappi has restructured its operations and divested from operations 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 an annual 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 an annual 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 an annual
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
annually. 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 agreed 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. The Blackburn mill 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.
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