Floods deal heavy blow to Sappi in Kwazulu-natal

Paper producer Sappi on Friday revealed the heavy damages it suffered from the Kwazulunatal floods. The company said about 45 000 tonnes of inventory was damaged at its warehouses. This includes 30000 tonnes of dissolving pulp.

Sappi said it was claiming R431-million from insurance and expects a payout, reassuring investors that there will be no material impact on its profits for the year.

Operations were disrupted at the Saiccor, Tugela and Kwadukuza mills.

“We are making every effort to minimise the negative impact on our customers,” said Sappi CEO Steve Binnie.