R/€ = 15.06Change: 0.06
R/$ = 13.28Change: 0.12
Au 1155.96 $/ozChange: 11.81
Pt 980.00 $/ozChange: 27.00
Note: Search is limited to the most recent 250 articles. Set date range to access earlier articles.
Where? With... When?

And must exclude these words...
Close Main Search
Close Main Login
My Profile News Alerts Newsletters Logout Close Main Profile
Agriculture   Automotive   Chemicals   Competition Policy   Construction   Defence   Economy   Electricity   Energy   Environment   ICT   Metals   Mining   Science and Technology   Services   Trade   Transport & Logistics   Water  
What's On Press Office Tenders Suppliers Directory Research Jobs Announcements Letters About Us
RSS Feed
Article   Comments   Other News   Research   Magazine  
Oct 12, 2012

400 jobs on the line as Sappi mothballs paper machine

Natal|Packaging|Sappi|KwaZulu-Natal-based Tugela Mill|Tugela Mill|Energy|Increased Energy|Lightweight Containerboard Products|Manufacturing|Packaging|Paper And Packaging|Products|Service|PM2
© Reuse this

Paper and packaging group Sappi has issued over 400 of its staff members with Section 189 notices regarding its decision to mothball the PM4 paper machine at its KwaZulu-Natal-based Tugela mill, from January 1.

Although expected to be substantially lower, Sappi pointed out on Friday that the eventual number of positions impacted by the suspension would be known at the conclusion of the 60-day consultation period.

“Sappi remains committed to its approach that retrenchments are a last resort, and as such, will work with staff to investigate options to minimise retrenchments,” the company assured.

PM4 was manufacturing lightweight containerboard products; however, the current cost structure and market conditions did not allow it to operate profitably.

Sappi said the Tugela mill had not delivered satisfactory financial returns in recent years, despite ongoing corrective actions and interventions to address increased energy, labour and raw materials costs.

The mill’s competitiveness has further been challenged by overcapacity in the local paper market, an influx of imported products, weak demand for certain papers and depressed selling prices.

The company indicated that suspended production at PM4 would enable the repositioning of the Tugela mill’s cost structure and ensure the sustainability of its other paper machine, PM2, which produced a range of fluting and liner products.

Sappi said it would be in a position to restart PM4 when market conditions improved, adding it was confident that, given current market conditions, sufficient capacity still existed at the mill to meet all local containerboard requirements.

No disruptions in supply as a result of the closure of PM4 were anticipated.

During 2011 and 2012, Sappi undertook various measures to return the Tugela mill to profitability, including closing the PM3 paper machine, the kraft continuous digester pulp circuit, right-sizing the mill to service the remaining assets and ceasing sack kraft production at PM4.

Edited by: Mariaan Webb
Creamer Media Senior Researcher and Deputy Editor Online
© Reuse this Comment Guidelines (150 word limit)
Other Agriculture News
Updated 4 minutes ago Dr Danie Cronjé will retire as Sappi chairperson at the end of February 2016. He was appointed to the board in January 2008 and took up the position of chairperson in March of that year.
The first phase of the repair and modernisation of the deep water port of Nacala, in Nampula province in Mozambique, is close to being concluded, the Macauhub news agency has reported. This phase will result in the port having new container and fuel terminals, plus a...
fter three years of collaborative research and product development centered on the potential health benefits, nutraceutical and functional food applications of various indigenous South African edible plants, a new instant noodle product flavoured with local plant...
Latest News
Updated 3 minutes ago Dr Danie Cronjé will retire as Sappi chairperson at the end of February 2016. He was appointed to the board in January 2008 and took up the position of chairperson in March of that year.
Updated 41 minutes ago Continuous product development changed the fortunes of Korean car makers Hyundai and Kia, and Indian car maker Tata Motors wants to see the same happen to its brand. Tata Motors passenger vehicles president Mayank Pareek says the group will launch two new models a...
The Barracuda UAV
Updated 54 minutes ago The most important technology for unmanned air vehicles (UAVs) operating in non-segregated airspace (in which manned and even civilian aircraft would be encountered) is "sense and avoid" technology. This would allow the UAV to detect and avoid other aircraft. So...
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
BUSINESS LEADERS PANEL Adam Craker, Ivor Chipkin, Alan Hosking and Allon Raiz at the 6th IQ Business Active Growth conference
At the sixth IQ Business conference held in Sandton last month, a panel of business leaders and academics advocated that business reclaims the initiative to spur growth in South Africa amid fragmented and haphazard political direction. Management consulting firm IQ...
The building industry is an essential component of the South African economy as it contributes about 15% to the gross fixed investment that drives the economy. However, with the country’s economy going through a tough time currently, this, in turn, reflects on the...
The recipients of the 2015 South African National Energy Association (Sanea)/South African National Energy Development Institute Energy (Sanedi) Awards were announced at a ceremony and banquet in Sandton last month. Sanea chairperson Brian Statham named Exxaro CEO...
ASHER BOHBOT EOH’s corporate goals were originally aspirations, but the company is relevant and is making a difference in the territories it operates in
As South African information technology (IT) firm EOH posted another full year of strong growth, CEO Asher Bohbot, known for his frank words, people-centric management style and stoic humanism, attributed the company’s continued South African and African growth to...
International heavy-equipment engine manufacturer Cummins’ regional distribution centre (RDC) in Woodmead, Gauteng, has halved the average logistics distribution time for clients in Southern Africa and allowed for critical or long-lead stock to be kept closer to...
Alert Close
Embed Code Close
Research Reports Close
Research Reports are a product of the
Research Channel Africa. Reports can be bought individually or you can gain full access to all reports as part of a Research Channel Africa subscription.
Find Out More Buy Report
Engineering News
Completely Re-Engineered
Experience it now. Click here
*website to launch in a few weeks
Subscribe Now for $96 Close
Subscribe Now for $96