Photo by: Creamer Media
JSE-listed paper and packaging company Sappi on Monday announced the finalisation of the acquisition of the Matane hardwood pulp mill, in Quebec, Canada, from Rayonier Advanced Materials.
The additional mill will increase Sappi’s pulp supply for its fast-growing packaging businesses in North America and Europe, while reducing the company’s cost of pulp.
Additionally, the deal supports Sappi’s 2020 vision to grow in higher-margin growth segments and reduces the volatility of earnings through the pulp cycle.
Sappi CEO Steve Binnie commented that the acquisition would provide the company with both cost reductions and decreased volatility at a very competitive price per ton of pulp.
“The transaction strengthens Sappi’s pulp integration, improves our profitability and is another significant milestone towards realising our Vision 2020 goal.”