Sappi in huge R7bn investments in KZN

Sappi has announced R7bn investments in KwaZulu-Natal, which acting premier Sihle Zikalala believes will have a massive positive impact on the province’s economy.

The South African pulp and paper company on Monday announced major planned upgrades at its Saiccor Mill in Umkomaas‚ south of Durban. The investments will include a R2.7bn capacity expansion project and R5bn worth of continuous improvement initiatives and upgrade projects planned over five years.

Zikalala said on Monday that it was heartening that more and more business organisations such as Sappi continued to express their commitment to the provincial economy.

He said the massive investments currently being poured into different parts of the province by big conglomerates were a major vote of confidence in the province’s resolve to grow its economy.

Zikalala said the increased and expanded investment reaffirmed Sappi’s commitment to the province.

He said he had been assured that Sappi would work swiftly to obtain the necessary authorisation to make the company’s planned investments a reality.

DISSOLVING PULP

Sappi Group CEO Steve Binnie said: “Sappi has seen significant benefits in serving its global customers from its South African operations.

“Sappi had invested some R4.3bn 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 R2.7bn at Saiccor during 2018 and 2019.”