Our performance in 2009 - Sappi

After a weak start to the
year, the North American
business returned to
profitability in June
and had a particularly
strong final quarter.
2009 annual report 33
North America
Faced with a drop in demand of up to 30% in the early part of the year, we took decisive action
to improve our business. This included a restructuring, necessitated by closing our operations at
Muskegon Mill. We now have two very efficient coated fine paper mills which took up the full
range of products previously supplied by Muskegon Mill, without interruption.
We continued working with our customers to ensure our product range serves their changing
requirements. Flo, a coated fine paper brand which includes sheets and web, showed improved
profitability during the year by meeting the needs of our important economy sector customers.
Our specialities business launched new products and patterns in the casting release market
during the year and experienced a good uptake by customers. The new Mokka pattern, which
adds a suede finish to the cast product, is expected to become a leading pattern in terms of
quality and profitability.
Cost reduction was a major theme in the year and we focused on product design, procurement,
eliminating waste and operational efficiency. We managed to reduce fixed costs in absolute and
per unit terms.
our performance