While global market conditions remained challenging, the quarter reflected encouraging progress in key strategic initiatives, particularly the continued ramp-up of the Somerset Mill PM2 paperboard machine in North America, ongoing cost reduction actions across the group and disciplined capital allocation.

Sappi Limited (“Sappi”) and UPM-Kymmene Corporation (“UPM”) have today announced the signing of binding (definitive) agreements to form a non-listed, independent 50/50 Joint Venture for graphic paper.

While headline earnings were impacted by an unprecedented “risk-off” global environment and a volatile Rand/US Dollar exchange rate, the group has significantly accelerated its focus on innovative business enhancements to ensure global competitiveness.