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Sappi Southern Africa to Trim Mill Workforce

Aug. 31, 2009 - Sappi Southern Africa today said that it has started talks with employees and trade unions at its Kraft and Fine Paper mills regarding cost reduction and efficiency improvement initiatives.

The company said as many as 400 employees at three mills may be affected by the streamlining effort.

“We will begin consultations with our employees at our Tugela, Ngodwana and Enstra mills regarding proposals for cost reduction and efficiency improvement initiatives to ensure that we meet our stated objectives of improved profitability and delivering acceptable returns,” said Jan Labuschagne, CEO of Sappi Southern Africa.

“The proposed actions are required to successfully meet the challenges of the depressed economic conditions we are experiencing in the domestic and export markets for Fine Paper and Kraft products," Labuschagne said.

"These actions will not impact on our ability to meet customer demand or current commitments,” he added.

"Any decision which may lead to retrenchments remains difficult and one we only consider as a last resort. We do not expect this to affect more than 400 employees across the three mills. These initiatives will ensure that we are strongly positioned to take full advantage of any improvements in our markets and in economic conditions in general," Labuschagne concluded.

SOURCE: Sappi Limited




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