Sappi confirms widespread job cuts in SA

Business Day says that the markets have responded well to the announcement of job cuts by Sappi and says that shares climbed by 5% immediately after investors were told of the cost-cutting measures.

It is part of a worldwide restructuring that has already led to closures of paper mills in Switzerland and South Africa. The company says that it intends to focus on higher-margin businesses such as chemical cellulose production that is used in a wide range of consumer goods.

Sappi says it wants to generate about 60% of its operating profits from higher-margin businesses in the next three to five years.

Read the full article on www.businessday.co.za.