Our performance in 2009 - Sappi

...following the expansion
of the Saiccor Mill by
September 2009, we
were successfully
operating at close to
full capacity with high
quality output.
2009 annual report 39
cellulose. We are engaging with major South African supermarket chains to offer more
environmentally benign paper bags and packets as an alternative to plastic bags, and expect
the initiative to be launched early in 2010.
We continue to explore opportunities to invest in power cogeneration facilities to increase our
power self-sufficiency, and to increase the proportion of renewables in our total energy mix. To
date it has been difficult to reach agreement with the power utility on either sales or transmission
agreements which would allow us to transfer our power from one mill to another, to optimise
energy efficiencies. Our new performance-based log-transporting vehicles will help reduce our
wood costs and lower our carbon footprint by reducing fuel consumption per ton transported,
by 18%.
Going forward
We expect firm markets for chemical cellulose in the year ahead. Our focus will therefore be on
optimising production at the Saiccor Mill. Although the timing of an upturn in the Southern African
domestic markets is unclear, we expect a gradual improvement from current levels of low demand.
We will continue to work with customers on more effective product and service offerings, and on
finding more efficient ways to take our products to market.
We expect to benefit, over the next year, from cost initiatives launched in the last few months
and our objective will be to bolster the resilience of our business notwithstanding the strength of
the Rand relative to the US Dollar.
our performance