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Sappi concludes consultation process at Sappi Lanaken Mill; ceases paper production

Published: 2024-01-12 17:30:33 ET

Sappi Limited

Sappi Limited
(Incorporated in the Republic of South Africa)
(Registration number: 1936/008963/06)
JSE share code: SAP
ISIN: ZAE000006284
("Sappi")

Sappi concludes consultation process at Sappi Lanaken Mill; ceases paper production

The persistent global economic downturn is proving to be much tougher than anticipated with
depressed markets, geopolitical instability and weak economic growth combining to put
significant pressure on Sappi, particularly in Europe.

In response we announced on 10 October 2023 the start of a consultation process on the
possible closure of Sappi Lanaken Mill. We have completed this process and agreed on the
social plan for the employees. Production of paper ended in December 2023. The closure of
the site should be completed during the second calendar quarter of 2024. Details regarding
the financial impact once all closure elements are taken into account will be provided during
the first quarter financial results announcement.

For Sappi, our strategic focus includes reducing exposure to the graphic paper segment while
expanding our presence in packaging, speciality papers, pulp and biomaterials. Sappi Europe
is focused on building a sustainably resilient company. This requires evaluating the future of
all facets of the business based on market dynamics and the market segments Sappi believe
will be strongest in the future.

While continuing to serve the graphic paper market through its competitive assets, the overall
priority of the European business will be to grow the packaging and specialities segment
specifically within flexible packaging, functional papers, self-adhesives including glassine,
labels as well as dye-sublimation categories. The transfer of production to other Sappi facilities
increasing capacity utilisation has commenced and there will be no disruption to our
customers.

Sappi Lanaken Mill is an integrated pulp and paper mill located in Belgium, which employed
581 workers with a production capacity of 165,000 tpa of pulp used to produce 530,000 tpa of
coated woodfree paper which was mainly sold into the European print market.

12 January 2024

Sponsor:
RAND MERCHANT BANK (A division of FirstRand Bank Limited)

Enhanced Investments, Inc.
329 South Oyster Bay Road #2085
Plainview, NY 11803
team@eninvs.com

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All statements made via social media sites sponsored or maintained by Enhanced Investments and its affiliates are for informational purposes only and do not constitute a comprehensive description of Enhanced Investments' investment advisory services.
Certain investments are not suitable for all investors. Before investing, consider your investment objectives and applicable fees. The rate of return on investments can vary widely over time, especially for long term investments. Investment losses are possible, including the potential loss of all amounts invested. Information provided by Enhanced Investments is for informational and general educational purposes only and is not investment or financial advice.