Corruseal-deal includes the Enstra mill premises and recycled containerboard and kraft paper operations at the site. The existing security paper, office, specialty and folio businesses will remain with Sappi.
Sappi has announced the sale of the Enstra paper mill to South Africa's packaging group Corruseal. The deal is scheduled for closure at the end of September. The transaction value has not been disclosed.
According to Sappi, Corruseal will acquire the premises of the Enstra mill, including recycled containerboard and kraft papers businesses on PM 6. The security and specialty paper machine PM 2 as well office paper and folio operations are not part of the deal and will remain with Sappi.
Enstra mill employs 500 people and houses two paper machines with a total capacity of 160,000 tpy. PM 2 is producing security and specialty papers with an annual capacity of 20,000 t. PM 6 has a capacity of 140,000 tpy. Besides recycled containerboard and kraft papers, Sappi is also producing uncoated woodfree papers on the PM 6.
The sale of the mill is in line with Sappi Southern Africa's strategy to unlock value and is in line with the Sappi Limited strategy which aims to reduce debt, strengthen its balance sheet and direct resources to high growth opportunities," said Sappi Southern Africa CEO Alex Thiel.