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Sappi sells Usutu Swaziland business to Montigny

Sappi sells Usutu Swaziland business to Montigny

Photo by Duane Daws

16th July 2014

By: Leandi Kolver

Creamer Media Deputy Editor

  

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Paper, pulp and packaging group Sappi on Wednesday concluded the sale of its Swaziland subsidiary Usutu Forest Products Company to Swaziland business Montigny Investments for R1-billion.

Usutu, which owned some 67 000 ha of softwood plantations and a decommissioned pulp mill, was sold in line with the group’s strategic focus on high-growth segments, such as specialised cellulose and packaging, Sappi CEO Steve Binnie said.

Sappi previously indicated that its need for softwood had been reduced following the conversion and expansion of its Ngodwana plant, in Mpumalanga, to produce dissolving pulp rather than bleached softwood.

Binnie said the proceeds of the sale, which was first announced in July last year, would contribute to reducing the group’s debt.

Edited by Chanel de Bruyn
Creamer Media Online Managing Editor

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