2008 Annual report - Sappi

Review of operations // Sappi Fine Paper continued
The acquisition of M-real’s coated graphic paper business
We are acquiring the coated graphic paper business of M-real for Y750 million, including the brands,
know-how, intellectual property, order books, and four mills. We will also enter into agreements to sell
the coated paper output of two mills, which will continue to be owned and operated by M-real, and
contracts to purchase pulp, wood and energy from M-real and its associates.
Mills to be acquired
Kirkniemi Mill – Finland
Kangas Mill – Finland
Stockstadt Mill – Germany
Biberist Mill – Switzerland
Coated papers for web
(reels) printing
Products are part of the
well known Galerie
stable of brands:
Galerie Lite, Galerie Brite
and Galerie Fine
Three paper machines
Capacity of 740,000 tons
of coated magazine paper
per annum; 338,000 tons
of mechanical pulp
per annum
Produces 295 MWh from
leased power plant
Produces Galerie Silk, a
coated magazine paper
Capacity of 210,000 tons
per annum
One paper machine –
rebuilt in 2001
Produces coated and
uncoated fine paper for
sheet fed printing
Pulp integrated with own
power plant
Capacity of 210,000 tons
coated fine paper;
210,000 tons of uncoated
woodfree paper;
160,000 tons of
chemical pulp
Two paper machines
Produces coated fine
paper for the graphic arts
industry and uncoated
fine paper mainly for
office use
Capacity of 430,000 tons
of coated fine paper and
75,000 tons of uncoated
fine paper
Three paper machines
Distribution agreements
Husum Paper Machine 8, Sweden
• Annual capacity of 285,000 tons of coated
fine paper
• Mainly for magazine paper market
• Products: Galerie Fine Gloss (80 –130g/m 2 )
coated woodfree paper with high brightness,
smoothness and improved opacity
Äänekoski Paper Machine 2, Finland
• Produces coated woodfree art paper on one
paper machine, under the brand name Galerie Art
• Annual capacity 200,000 tons
Coated paper production to remain
with M-real
Sappi entered into distribution agreements for
the output of the following paper machines:
Husum Paper Machine 8; and
Äänekoski Paper Machine 2
Husum Paper Machine 8 and Äänekoski Paper
Machine 2 will continue to produce coated fine
paper and remain under M-real’s ownership.
Sappi will sell the paper on a commission basis
on behalf of M-real.
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