Strengthening Sappi Europe’s Competitive Advantage
Range of projects launched for period 2017 to 2019 including:
- Expanded lightweight packaging and speciality paper capacity at Alfeld Mill
- Conversion of Maastricht Mill to produce high quality solid bleached board
- Transition Lanaken Mill PM8 over three years to support coated woodfree business
Sappi Limited announced today a range of projects in Europe and the United States to support its growth strategy and 2020Vision and in particular to be the lowest cost producer and best service provider in graphic papers and to increase its global product offering to packaging and speciality papers customers.
A number of projects related to equipment upgrades and production efficiencies at its Alfeld, and Ehingen Mills in Germany, its Lanaken Mill in Belgium and its Maastricht Mill in The Netherlands will be undertaken over the next three years.
Sappi Europe will take a further decisive step in growing its packaging and speciality papers business by converting its Maastricht Mill to a high quality solid bleached board facility and by expanding the lightweight packaging and speciality papers capacity of its Alfeld Mill by 10,000 tpa. It is expected that the SBB business at Maastricht Mill will grow to 150,000 tpa in the next three years. The displaced graphic paper volumes will be assigned to other mills.
The rapid growth of Sappi Europe’s packaging and speciality papers capacity will also be supported by Sappi Ehingen Mill, whilst Sappi Lanaken Mill PM8 will progressively transition to coated woodfree production over the next three years in line with the expected decline in the coated mechanical market.
Berry Wiersum, CEO Sappi Europe, said: “We are delighted to have received strong support from Sappi’s Board. These projects will enable us to make better use of our assets to drive growth in speciality papers, as well as to reduce by 2020 our coated graphic papers capacity by about 200,000 tons”.
Commented Steve Binnie, CEO of Sappi Limited: “Our focus has always been to build and strengthen competitive advantage. Taken as a whole, these investments take advantage of our manufacturing base and the skills and knowledge of our people to enhance the potential of the mills, setting us on a strong course for the future”.