Sappi declares force majeure at Saiccor Mill


Sappi declares force majeure at Saiccor Mill

Published Date: 2020-03-25 | Source: Stephen Gunnion | Author: Stephen Gunnion

Sappi declares force majeure at Saiccor Mill

The pulp and paper producer says the Vulindlela expansion project will undergo a controlled shut down due to the pending lockdown.

Sappi has declared force majeure on the Vulindlela expansion and upgrade project at its Saiccor Mill in Umkomaas south of Durban due to the pending Covid-19 lockdown.

The pulp and paper group says it has informed all its suppliers, vendors and contractors of its decision to cease all work at the project after the government declared a three-week lockdown to combat the pandemic. It said the R7.7 billion expansion project was 65% complete and was materially on track but would undergo a controlled shut down.

Once complete, Vulindlela will increase the mill's production of dissolving wood pulp from 780,000 tons to 890,000 tons per year.

Sappi's shares closed 0.3% higher at R19.21 yesterday. The announcement was made shortly before the close of trade.

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