JSE-listed paper and packaging company Sappi has declared force majeure on the Vulindlela dissolving pulp expansion and upgrade project at its Saiccor mill in alignment with the government’s declaration of a nationwide lockdown to combat the spread of Covid-19.
Sappi on March 25 said the project was 65% complete and “materially on track”.
The mill was undergoing a controlled shutdown, the company said, adding that the project would restart based on government guidance.
Sappi did not expect any material cost increases as a result of the force majeure.
Future cash flows would be aligned to the revised project timelines.