Saiccor - The First 50 Years 5.8 MB - Sappi

The Dell Period (1983–1985)
To make higher alpha pulp – Saiccor to investigate the installation
of a third bleach plant and new pulp machine, splitting the plant
into two streams, where one stream could make higher grade
dissolving pulp and paper pulp�
To make paper pulp – Saiccor to investigate the making of magnefite
paper pulp from either Eucalyptus or pine, and to investigate the
market for this pulp�
The Review was of the opinion that Eucalyptus was in short supply,
although Johan van der Walt believed that with improvements already
made in silviculture, this would soon be reversed�
In terms of plant and equipment, the Review was repeating
what was in the magnesium plant proposal of 1982, but with a
greater emphasis on quality, while the marketing thrust of the
1985 Saiccor Review has been the basis of Saiccor’s marketing
strategy ever since�
I have it on very good authority that Geoff Turner made a second
presentation of the Saiccor Review, to the Courtaulds Board, in either
late 1985 or early 1986� In this presentation he recommended to the
Courtaulds Board that they sell Saiccor� Again only Sipco Huismans
objected� (Years later when Sipco was Managing Director of
Courtaulds, and Saiccor was owned by Sappi, Sipco offered Eugene
van As a blank cheque to have Saiccor back�)
The third significant event that occurred in 1985 concerned the
currency debacle� From about 1982 the Courtaulds treasury started
speculating with currency, by having Saiccor sell some of their dollar
sales forward to the Reserve Bank when they believed the rand would
strengthen� The gamble seemed to work until 1985� In early 1985
there was a fairly widespread belief in financial circles that the rand
was about to strengthen substantially� Many importers waived
forward cover while Saiccor sold a large portion of its 1985 dollar
sales forward� Instead the rand ‘fell out of bed’, and Saiccor, for the
first time in its history, made a loss (nearly R30 million)�
Peter Dell was recalled to an undisclosed position at Courtaulds in
January 1986, only to resign a short while later�
Norman Wooding and James Wrangham resigned
from the Saiccor Board� Gordon Campbell replaced
Peter Dell as Managing Director on 1 February
1986, and Koos van Rooy became Chairman�
Production over the Dell period increased by 5 per
cent in 1983, was static in 1984 and dropped in 1985
as a result of the start-up of the magnesium plant�
Saiccor sales outside Courtaulds grew to 45 per
cent of total sales by 1985, with sales to Japan alone
being just short of 100 000 tons� Saiccor had
become an inter-national trader�
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Production t/d in the Dell era,
1983–1985