South African pulp and paper firm Sappi is set to invest R2.7bn ($200m) at its Saiccor mill to increase production capacity.
Image: Sappi to increase production capacity at Saiccor mill. Photo: courtesy of Sappi Limited.
The Saiccor mill is located in Umkomaas, south of Durban, in the province of KwaZulu-Natal (KZN). It produces dissolving wood pulp, which is marketed to converters to manufacture a wide range of consumer products.
The company also announced that it will invest R5bn ($370m) over five years in various continuous improvement initiatives and upgrade projects.
Sappi Southern Africa CEO Alex Thiel said: “Sappi is planning to invest R5 billion over the next five years through maintenance and upgrade projects to decrease production costs, introduce new technology, optimise processes and future-proof manufacturing systems at Saiccor Mill.”
The company is currently in the process of engaging with the relevant authorities and consulting with communities and various other stakeholders to secure required support for the planned investments under Project Vulindlela.
Vulindlela will help to expand the mills production from 780 000 tons to 890 000 tons per year, as well as enables to create employment opportunities for local job seekers through construction companies and business prospects for entrepreneurs from the local communities around the mill.
Saiccor Mill and Sappi Forests, which source and supply the timber required by the mill, are major contributors to the KZN economy.
The projects will comprise of new evaporator, recovery boiler and screening and washing plant,a and upgrades to bleach plant and pulp machines, improved recovery circuits and additional magnesium digesters.
Sappi’s KZN operations include three mills, forestry operations and sales and export services, and these operations contribute around R12bn ($890m) per annum to the KZN economy.
Sappi Limited Group CEO Steve Binnie said: “Sappi has seen significant benefits in serving its global customers from its South African operations. Sappi had invested some R4.3 billion from 2012 to 2018 to increase its dissolving pulp capacity in South Africa.
“This global market has shown such strong growth that Sappi will again increase capacity in South Africa by investing R2.7 billion at Saiccor during 2018 and 2019.”