Johannesburg and Brussels
Sappi and UPM have formally submitted remedy proposals to the European Commission as part of its ongoing review of the planned graphic paper Joint Venture.
The proposed remedies have been offered to support the ongoing review process and do not change Sappi’s view that the transaction does not raise competition concerns. The remedies consist of commitments across a range of areas relating to the future operations of the Joint Venture. They include capacity optimization for the supply of certain paper grades in Europe, and related disclosures, with a view to maintaining a competitive and stable market despite the ongoing decline in demand, while taking into account environmental performance. They also include certain commercial safeguards for customers, and investments in decarbonization, electrification and energy efficiency. Any specific measures to give effect to these commitments would be taken forward by the Joint Venture following its establishment.
Sappi continues to believe that the planned Joint Venture would support the long-term competitiveness, sustainability and resilience of the European graphic paper industry. The Joint Venture is a rational response to the structural decline of graphic paper markets in Europe and would enable a more orderly adjustment of industry capacity while maintaining reliable customer supply and generating significant efficiencies. The challenges faced by the graphic paper markets in Europe were further evident in the third quarter of 2026, with industry sales declining by 7% year on year.
The European Commission will now assess the proposed remedies as part of its ongoing review process.
Sappi and UPM continue to engage constructively with the Commission. The companies are unable to comment further on the details of the review while the process remains ongoing.
The Commission's final decision is expected by year-end or shortly thereafter.
Sappi will provide further updates as appropriate.
Further information on the proposed Joint Venture can be found on:
About Sappi
Sappi uses renewable resources to make woodfibre based products. We are a diversified, innovative and trusted leader focused on sustainable processes and products, and are building a circular economy that benefits the world.
Our packaging papers, graphic papers, pulp and biomaterials are manufactured from woodfibre sourced from sustainably managed forests, in production facilities which, in many cases use internally generated bioenergy. Many of our operations are self-sufficient.
We have manufacturing operations on three continents and sell our products in more than 150 countries. Our global presence allows us to optimise for different markets, while sharing best practices and the latest technological achievements.
Together with our partners, we work to build a thriving world by acting boldly to support the planet, people and prosperity.
www.sappi.com
Issued by:
Edelman Europe
Nikkie Shike
VP Public & Government Affairs
Tel +32 475755106
Nikkie.Shike@edelman.com
For further information
André F Oberholzer
Group Head Corporate Affairs
Sappi Limited
Tel +27 (0)11 407 8044
Mobile +27 (0)83 235 2973
Andre.Oberholzer@sappi.com
Tracy Wessels
Group Head Investor Relations and Sustainability
Sappi Limited
Tel +27 (0)11 407 8391
Mobile +27 (0)83 666 6589
Tracy.wessels@sappi.com
Kirsty Hector
Regional Communication Manager
Sappi Europe
Tel + 32 (0) 2 676 97 00
Mobile + 32 (0) 496 390 889
Kirsty.hector@sappi.com