Sappi Completes Sale of Usutu Forest Products in Swaziland
July 16, 2014 - Sappi today confirmed that the company has concluded the sale of its Usutu Forest Products Company Limited to local Swaziland (South Africa) business Montigny Investments for ZAR1,000,000,000 (one billion Rand)
Sappi said proceeds from the sale will be used for general corporate purposes and will reduce Sappi's net debt.
Sappi announced on July 1, 2013 that it intended to dispose of Usutu Forest Products Company Limited to Montigny Investments Limited.
According to Sappi, "Usutu controls approximately 67,000 hectares of softwood plantations, a decommissioned pulp mill and two villages in close proximity to the pulp mill all located in the Kingdom of Swaziland. Sappi's conversion and expansion of its Ngodwana plant to produce dissolving pulp rather than bleached softwood pulp, has reduced its softwood requirements."
Commenting on the sale, Sappi Limited Chief Executive Officer Steve Binnie said "We are extremely happy to have been able to sell our Usutu business to Montigny. The transaction reflects the change in Sappi's strategic focus towards high growth segments such as specialised cellulose and packaging. The proceeds of the sale will contribute to paying down debt."
Sappi Limited is a global pulp and paper company headquartered in Johannesburg, South Africa. To learn more please visit: www.sappi.com.
SOURCE: Sappi Limited