SAPPI LIMITED

Pulp
Sappi Fine Paper Europe produces approximately 51% of its pulp requirements. The remainder is
mostly supplied through open market contracts, the biggest supplier being M-real Corporation who
supply up to 463,000 tonnes of pulp per annum, for contracted periods of between 2 and 8 years.
Energy Requirements
Sappi Fine Paper Europe’s energy requirements are generally met by internal generation and
external purchases of electricity, gas, biomass and, to a lesser extent, hard coal and oil. The delivery of
electricity, natural gas, oil, coal and biomass is covered by various mid-term supply agreements.
Since July 2007, Gratkorn has operated a combined heat and power plant (‘‘CHP plant’’) on site and
has become an exporter of about 10 megawatts of electricity.
Substantially all of the electricity requirements of the Maastricht mill are satisfied by a 60 megawatt
CHP plant, which was operated as a 50% joint venture (VOF Warmte / Kracht—Maastricht mill) between
Sappi Fine Paper Europe and Essent until January 1, 2010. On this date, we acquired the remaining
shareholding from Essent. The plant utilizes natural gas, which is procured from a local supplier at
market prices. All surplus electrical energy generated is supplied to the national grid.
The Nijmegen mill’s electricity requirements are largely satisfied by its co-generation power plant.
The Nijmegen mill purchases natural gas from a major European gas supplier and a small amount of
electricity from the public grid.
The Lanaken mill’s energy requirements are generally met by purchases of natural gas and
electricity. Certain of the energy requirements of the mill are furnished by a CHP plant, constructed and
operated pursuant to the Albertcentrale N.V. joint venture arrangement between Sappi, the Belgian
power company Electrabel and Rabo Energie. We hold a 49% ownership interest in the Albertcentrale
facility and are obligated to purchase steam from the joint venture facility under a long-term supply
agreement. The facility commenced operations in April 1997. Lanaken mill’s electricity requirements are
satisfied by a supply contract with the national utility company Electrabel.
Alfeld and Ehingen generate about 50% of their power needs from renewable resources and the
remainder is purchased from an Austrian power company.
About half of the electricity and steam requirements of the Biberist mill is satisfied by a medium size
on site CHP plant which is owned and operated through a co-operation with a Swiss utility company. The
balance of the mill’s power requirements is purchased externally.
To a great extent, the electricity and steam requirements of the Kirkniemi mill are covered under a
long-term supply agreement with Fortum Heat & Power, a large Finnish utility company. The energy is
generated on site by a 100 megawatt CHP plant which is owned and operated by the utility company.
The large amount of natural gas required to operate the CHP plant is delivered by Gasum, the national
gas supplier. The balance of the mill’s power requirements is met through purchases of electricity from
the public grid. Biomass and natural gas are purchased for the generation of additional steam.
Stockstadt generates about 50% of their power needs from renewable resources and the remainder
is purchased from an Austrian power company. The mill’s steam requirements are met through the
usage of biomass and mineral coal as fuels.
Chemicals
Major chemicals used by Sappi Fine Paper Europe include clays, carbonates, latexes, starches and
chemicals for the speciality business. Sappi Fine Paper Europe purchases most of these chemicals from
a portfolio of suppliers, and in only one case is Sappi Fine Paper Europe dependent on a sole source of
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