Our performance in 2009 - Sappi

34 Review of operations | Sappi Fine Paper continued
We also placed particular emphasis on reducing energy consumption. We use a high proportion
of renewable and biomass fuels which comprised 83% of our total energy consumption in 2009.
This has lowered our carbon footprint significantly. In October 2010, we will commission a
recovery boiler project at the Somerset Mill to further reduce our reliance on fossil fuels and
improve our energy efficiency further.
In 2009, we realised a benefit from alternative fuel tax credits of US$87 million. We expect to be
entitled to additional tax credits of approximately US$45 million before the law under which the
credits are available expires in December 2009.
The business leadership was recognised when Mark Gardner, chief executive officer of our
North American business, was named chief executive officer of the year by the Paper Industry
Management Association.
Southern Africa
The Southern African business, which is the smallest part of the fine paper business, also
experienced a major fall in demand, which came later than the decline in the other two regions.
Innovation was a key theme for the business during the year, with achievements, including the
expansion of the security paper business into new market segments and the launch of wet
strength label paper for beverage bottles.
The business is focused on developing other niche products.
Going forward
We expect a gradual improvement in demand for coated paper in our major markets over the
next year but do not expect it to recover to pre-recession levels in the near term.
Our businesses will continue to seek opportunities to enhance business opportunities and reduce
costs. We will also look at rationalising our businesses further, particularly in Europe where we
expect further consolidation of the industry.
We expect export markets to improve in the year ahead in terms of both prices and volumes.