Pulp and paper manufacturer Sappi has sold its Cape Kraft recycled packaging paper mill, in Cape Town, to the Golden Era group for an undisclosed amount.
This sale, in addition to the recently announced sale of its 200 000 t/y Enstra mill and recycled packaging business, in Springs, to Corruseal, would net Sappi around R600-million.
In March this year, Sappi initiated a closed tender process after receiving many expressions of interest to buy the Cape Kraft mill, which used around 67 000 t/y of waste paper to produce 60 000 t/y of 100% recycled paper.
The disposal, expected to close in September, would enable Sappi to strengthen its balance sheet and allow focus on high-growth opportunities, Sappi Southern Africa CEO Alex Thiel said in a statement.
“The sale of the Cape Kraft and Enstra mills and the recycled packaging paper business is in line with Sappi Southern Africa’s strategy to unlock value from noncore assets and free up resources for investment in dissolving wood pulp, virgin containerboard and other new business opportunities,” he added.
The company also operated the Tugela mill, near Durban, the Stanger mill, in KwaZulu-Natal, the fully integrated Ngodwana mill, in Mpumalanga, as well as the Saiccor mill, in KwaZulu-Natal, which produced dissolving wood pulp.