SAPPI LIMITED

SAPPI
NOTES TO THE GROUP ANNUAL FINANCIAL STATEMENTS (Continued)
for the year ended September 2010
22. PROVISIONS (Continued)
September 2009 Restructuring Plans
Sappi Fine Paper Europe
Kangas Mill. During the fiscal year ended September 2009, the company announced that it had
entered into a consultation process with employees’ representatives with a view to restructuring working
models. The consultation process with employee representatives came to an end in July 2009 resulting
in 9 employees being made redundant. After the term of notice and remodelling, employment contracts
ended in April 2010. A provision of approximately US$1 million relating to retrenchment costs was
raised.
Kirkniemi Mill. The Mill started consultation negotiations with the employee representatives on the
6th of April 2009 for production and economical reasons. Negotiations came to an end on the 19th of
May 2009 resulting in 63 employees being made redundant. A provision of approximately US$2 million
was raised.
Sappi Fine Paper North America
Muskegon Mill. During the financial year ended September 2009, Sappi Fine Paper North America
announced the decision to permanently close the Muskegon mill and integrate the mills products into
the production lines at the Somerset and Cloquet mills. A total of 190 employees were affected by the
closure of the Muskegon mill. Muskegon mill had an annual capacity of 170,000 tons of coated fine
paper. A provision of approximately US$21 million relating to restructuring charges was raised.
Sappi Southern Africa
Regional Restructuring. During the financial year ended September 2009, Sappi Southern Africa
announced that it had entered into a process of consultations with employees at Tugela, Ngodwana and
Enstra mills regarding proposals for cost reduction and efficiency improvement initiatives. The
restructuring affected approximately 227 employees. A total provision of approximately US$2 million
was raised.
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