Name of the Project
Project Vulindlela.

Location
Umkomaas, in KwaZulu-Natal, South Africa.

Project Owner/s
Sappi.

Project Description
Sappi proposes to expand capacity and undertake various continuous improvement initiatives and upgrade projects at the Saiccor mill – collectively known as Project Vulindlela.

Vulindlela will increase the mill’s production from 780 000 t/y to 890 000 t/y of dissolving wood pulp. The projects will include a new evaporator, recovery boiler and screening and washing plant, as well as upgrades to the bleach plant and pulp machines, improved recovery circuits and additional magnesium digesters.

Potential Job Creation
The construction phase of the project is expected to peak at about 2 200 employees, 40% of whom will be sourced from the local communities, 40% from KwaZulu-Natal, 15% from within South Africa and 5% as specialists from foreign other? countries.

Further, once completed, the plant will require 120 full-time employees to maintain and operate equipment.

Capital Expenditure
The project will cost R7.7-billion, which includes the capacity upgrade (R2.7-billion) and various environmental and continuous improvement projects (R5-billion).

The environmental projects constitute the majority of the total costs.

Planned Start /End Date
The project is scheduled for completion in the fourth quarter of 2020.

Latest Developments
Sappi has declared force majeure on the Vulindlela project at its Saiccor mill, in alignment with government’s declaration of a nationwide lockdown to combat the spread of Covid-19.

Sappi said on March 25  that the project was 65% complete and “materially on track”.

The company has said that the mill is undergoing a controlled shutdown, with a project restart to be based on government guidance.

Sappi does not expect any material cost increases as a result of the force majeure.

Future cashflows will be aligned to the revised project timelines

Key Contracts and Suppliers
AF and Wood (management of Project Vulindlela); Andritz, Valmet, GL&V, ND Engineering, ABB, Karasek, Murray &Roberts, Franki and Stefanutti Stocks.

Contact Details for Project Information
Sappi group corporate affairs head André Oberholzer, tel +27 11 407 8044 or email Andre.Oberholzer@sappi.com.