SAPPI LIMITED

addition, approximately 18% of United States consumption is supplied by foreign producers, primarily
Asian and European.
Europe
The market leaders in coated woodfree paper production in Europe are Sappi, Stora Enso, Burgo-
Marchi Group, UPM-Kymmene and Lecta (which is owned by an affiliate of CVC Partners).
SAPPI SOUTHERN AFRICA
Overview
Sappi Southern Africa, headquartered in Johannesburg, South Africa, is an integrated pulp,
packaging paper, coated, uncoated and speciality paper, crepe tissue and timber products producer.
Sappi Southern Africa operates seven pulp and paper mills and one sawmill. The segment is managed
in three divisions: Sappi Paper and Paper Packaging, Sappi Chemical Cellulose and Sappi Forests.
Sappi Southern Africa is a major pulp and paper producer in Africa, with a production capacity of
830,000 tonnes of packaging paper products, 350,000 tonnes of woodfree paper products, 800,000
tonnes of chemical cellulose and 1,025,000 tonnes of paper pulp per annum. It is also a major timber
grower and manages directly and indirectly approximately 555,000 hectares of forestland. Currently, we
have access to approximately 404,000 hectares of plantable forestland; however, due to forest fires and
timing differences between felling and planting activities, approximately 378,000 hectares is planted with
primarily pine and eucalyptus. Approximately 67% of our southern African pulpwood and sawlog
requirements are from our managed, owned and leased plantations. The term ‘‘directly manages’’
relates to plantations in southern Africa established on land that we either own or lease from a third party.
The term ‘‘indirectly manages’’ relates to plantations in southern Africa established on land held by
independent commercial farmers, where we provide technical assistance in the form of advice on the
growing and tending of trees.
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