|Sappi Fine Paper|
Sappi Fine Paper is a global business with manufacturing assets in eight countries on three continents, with customers in over 100 countries. We have a total paper capacity of 4.3 million metric tons and the division represents 83% of group sales and 66% of group operating income, contributing US$190 million in 2003.
Our main focus is on high quality branded coated fine paper. We have developed leading market shares in the USA, Europe and Africa; and aim to grow our modest Asian market share to a level of approximately 15% in the medium term.
Our customers include leading printers, advertisers, publishers and designers who communicate their messages through the printed word and powerful graphic images created on our broad range of products. We have strong relationships with merchants who stock our products and support our supply chain.
The division's manufacturing base is geographically diverse and includes some of the most efficient coated paper machines in the world.
The speciality business produces a range of coated and uncoated speciality paper and casting release paper, which is used in the manufacture of artificial leather and other textured fashion applications.
Sappi Forest Products
Sappi Forest Products, our pulp and commodity paper products business based in Southern Africa, is the world's largest producer of dissolving pulp.
It provides the group with a pulp revenue stream that hedges the pulp purchases of our fine paper business, thereby reducing our exposure to the volatility of world pulp prices.
The division produces dissolving pulp, bleached and unbleached kraft pulp, containerboard, packaging paper, newsprint and sawn timber.
The three business units of Sappi Forest Products:
Represented 17% of group sales and contributed 35% of group operating profit in 2003, clearly demonstrating the advantage of operating low cost, southern hemisphere production facilities.
The division owns and manages 540,000 hectares of Pine and Eucalyptus plantations in Southern Africa, where trees grow faster than in the Northern climes, giving us a cost advantage. We have strong market share positions in South Africa in our main product areas:
We have a worldwide market share of approximately 15% in dissolving pulp.
Sappi people are critical to our success. Our ability to meet the needs of global markets hinges on equipping our people with the skills, knowledge, technology and confidence to prosper in a rapidly changing world where developing knowledge calls for ever-increasing levels of skills and expertise.
We focus on helping our people grow, develop and build their potential in keeping with our business philosophy of continuous improvement. This commitment extends to individuals and communities outside our immediate area of operations. We are further committed to promoting a racially, culturally and ethnically diverse workplace, entrenching a culture of safety and engaging with our stakeholders.