Our global business strategy

 

This is a time of truly exciting evolution for Sappi. Our aspirational 2020Vision sets out a range of medium-term targets with the end goal of substantially increasing EBITDA (earnings before interest, taxes, depreciation and amortisation) by the conclusion of the decade.

Through intentional evolution we will continue to grow Sappi into a profitable and cash-generative, diversified woodfibre group—focused on dissolving wood pulp, paper and products in adjacent fields.

At Sappi we do business with integrity and courage; making smart decisions which we execute with speed. Our values are underpinned by an unrelenting focus and commitment to safety.

Presenting a coherent and consistent culture of the highest integrity is a pillar of our strategy.
Steve Binnie, Sappi CEO and Sir Nigel Rudd, Sappi Chairman

Objectives in 2019

Following the successes of 2018, we are continuing to pursue our core objectives in 2019:

Achieve cost advantages

  • Continuously improve cost position
  • Continue to maximise global procurement benefits, and
  • Best-in-class production efficiencies.

 

Rationalise declining businesses

  • Maximise production at low-cost mills
  • Continuously balance paper supply and demand in all regions, and
  • Continue to transition printing and writing papers capacity to higher margin and growing specialities and packaging papers.

 

Maintain a healthy balance sheet

  • Maintain net debt/EBITDA ~2x,
  • Continuously improve working capital, and
  • Continue to monitor bond market for opportunities.

 

Accelerate growth in higher margin growth segments

  • Grow dissolving wood pulp capacity matching market demand
  • Continue to expand and grow specialities and packaging papers in all regions targeting 25% of group EBITDA by 2020, and
  • Commence commercialisation of biotech opportunities.

 

This provides the basis to progress further towards those 2020Vision targets—thriving on the diversified nature and global interconnectivity of our business.

Take a look through Sappi’s financial results for Q2 FY19 ended March 2019.

Explore Sappi’s latest share information. This includes a range of in-depth information, tools and interactive feeds.

Our global activity extends to three continents, selling millions of tons of high quality products to customers all over the world.