Sappi retires from the recycled packaging paper market in South Africa because it "did not enjoy any competitive advantage".
Sappi Southern Africa has completed the sale of the Cape Kraft recycled containerboard mill in South Africa to the Golden Era Group. According to Sappi, the mill has been transferred to the new owner on 23 November.
The Cape Kraft mill runs one paper machine with an installed capacity of 60,000 tpy of recycled corrugating medium and testliner.
"The sale of Cape Kraft mill, along with the sale sale of the Enstra mill which was completed earlier this month, signals Sappi's exit from the recycled paper packaging market, a market where Sappi did not enjoy any competitive advantage, " the company explained.
Sappi puts the combined proceeds from the sales of Enstra and Cape Kraft mills to just under ZAR600m, approximately €40m.