Sappi Southern Africa CEO Alex Thiel
Pulp and paper manufacturer Sappi will sell its Enstra mill recycled containerboard and kraft papers business, in Springs, to packaging supplier Corruseal Group for an undisclosed amount.
The mill would continue to manufacture recycled and lightweight packaging paper, but the existing security paper, office, speciality and folio businesses also conducted at the mill would remain with Sappi.
A transfer plan was being arranged with staff and customers.
“The sale of the mill is in line with Sappi Southern Africa’s strategy to unlock value and is in line with the Sappi strategy, which aims to reduce debt, strengthen its balance sheet and direct resources to high-growth opportunities,” commented Sappi Southern Africa CEO Alex Thiel.
Corruseal Group joint CEOs Mehul Mehta and Rajiv Mehta noted that the mill fit perfectly with the company’s strategy to backward integrate and grow its business.