Southern Africa - Sappi

14
Sustainability Report 2011
Key
Prosperity
issues
Restructuring our business
Eastern Cape
In 2011, we permanently closed Adamas Mill in Port Elizabeth despite the best efforts of Sappi Southern
Africa management and the 213 people employed at the mill. The small size of the mill and concomitant
low volumes, together with out-dated technology and the high costs of energy and fibre meant that
profitability could not be achieved. The volumes produced at the mill were transferred to Enstra and
Tugela Mills to enable us to continue meeting customer needs.
We are maintaining our marketing and sales presence in the Eastern Cape as well as the collection of
fibre and purchase of fibre collected by third parties (used for recycled paper) through Sappi ReFibre.
Furthermore, in partnership with AsgiSA-EC, we have developed a joint proposal with a strategic goal of
accelerating the establishment and management of 30,000 hectares (ha) of commercial tree plantations
by 2020 in the Eastern Cape. It is anticipated that these partnerships will be developed between Sappi
and communities that hold land rights, with Sappi being the ‘implementation partner’ as a provider of
technical, managerial and administrative support to the community businesses. This development is
expected to create 1,400 direct and permanent unskilled jobs and a further 125 jobs for skilled workers.
Using industry trends, it is expected that some four to five indirect jobs would be created for each direct
job, implying a further almost 8,000 jobs. In rolling out the project, Sappi and AsgiSA-EC have already
developed close to 215ha in conjunction with the Mkambathi and Sinawo communities.