Europe

Sappi results for 3rd quarter ended June 2015 highlights impact of exchange rates in seasonally weak quarter

This investment sees Sappi raising the quality standard and quality assurance levels in the production of special papers on PM2

Continuously rising input costs and consequently declining profit margins make corrective pricing measures inevitable as Sappi Europe’s business is unsustainable at current price levels.

Following our announcement on 8 May of a price increase for European coated fine and coated mechanical reels, Sappi Europe confirm our intention to raise prices also for woodfree coated sheets by 8% and a further increase on woodfree uncoated sheets and reels by 5-8% effective 1st of July 2015.

With reference to the announcement made on 02 July 2015 regarding the sale of Sappi’s Enstra Mill near Johannesburg, Sappi wishes to confirm that all conditions have been met and that the mill has been transferred today, 02 November 2015, to the new owners, Corruseal

Sappi Europe announces the European launch of Algro Thermo™, its new premium quality base paper for the direct thermal printing market. In weights from 100 – 193g/m², Algro Thermo offers a superior optical appearance for tickets, labels and other thermal printing applications.

In 2013, Sappi Europe announced its intention to significantly invest (EUR 56m) in its Kirkniemi Mill in Lohja, Finland. The decision to build a new power plant was key to supporting future operations, safeguarding the competitiveness of the mill, and backing the company’s drive for cost leadership.

At the start of June 2015, Sappi Speciality Papers became a member of the Save Food initiative, signalling a firm commitment to better protection of all foodstuffs the world over. Save Food is a joint initiative of the Food and Agriculture Organization of the United Nations (FAO), the United Nations Environment Programme (UNEP), Messe Düsseldorf and interpack, the world's leading trade fair for processes and packaging.

As part of Sappi Europe’s successful newly developed ‘go to market’ strategy, the green light has been given for the building of a state of the art multi-purpose paper storage logistics facility of approx. 20,000 m2 close to Wesel, Germany. The rail-linked facility will hold more stock keeping units for German and Benelux customers in particular. The logistics services linked to this additional warehouse space will also be made available to other customers thanks to the operational support provided by long-standing partners.

Sappi first quarter profits triple on significantly stronger performance.