Umkomaas paper mill plans R2,7-bn expansion

Economic growth in the South has been boosted with the news of a planned R2,7-billion capacity expansion project at Sappi Saiccor Mill in Umkomaas. In addition, Sappi plans to spend a further R5-billion over the next five years in various continuous improvement initiatives and upgrade projects.

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

CEO of Sappi Southern Africa, Alex Thiel said in addition to expanding capacity, Sappi plans 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 the Saiccor mill.

Thiel confirmed that Sappi was currently engaging with the relevant authorities and consulting with communities and various other stakeholders to obtain the required support for the planned investments, collectively known as Project Vulindlela.

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“The ongoing cost savings we will derive from these projects amount to at least R300-m per annum. With reference to the environmental benefits of the projects, CO2 emissions will be cut in half and waste to landfill will reduce by 48%. In addition, SO2 emissions will reduce by 35% and water use efficiency will increase by 17%.”

Vulindlela will increase the mill’s production from 780,000 tons to 890,000 tons per year, and is expected to create employment opportunities for local job seekers through construction companies and business prospects for entrepreneurs from the local communities around the mill.