By P&PC Staff
By P&PC Staff
Sappi Limited has finalized its acquisition of the Matane high-yield hardwood pulp mill in Quebec from Rayonier Advanced Materials.
According to Sappi, the acquisition will increase the pulp integration for its packaging businesses in both North America and Europe, support the company’s 2020Vision to grow in higher margin growth segments, reduce both the cost of pulp and the volatility of earnings through the pulp cycle, and establish certainty of supply for Sappi’s increasing need for high-yield pulp to support its recent investments.
The acquisition will also enable Sappi to increase supply over time to its mills in North America and Europe as demand increases and capacity expands.
The Matane mill is located on the south shore of the St. Lawrence River at the mouth of the Matane River. The mill has a capacity of 270,000 mt per annum of high-yield hardwood pulp. It has 129 employees.
“I am very pleased that we have been able to finalize this acquisition so quickly,” says Steve Binnie, chief executive officer of Sappi Limited. “This acquisition will provide Sappi with both cost reductions and decreased volatility at a very competitive price per ton of pulp. The transaction strengthens Sappi’s pulp integration, improves our profitability and is another significant milestone towards realizing our Vision2020 goal.”
Sappi Limited produces paper, pulp and dissolving wood pulp solutions and is headquartered in Johannesburg, South Africa. The company has over 12,000 employees worldwide and manufacturing operations in Europe, North America and South Africa.