Facilities News
Sappi to Spend $165M on Paper Machine Rebuild

Sappi Limited last week approved a range of projects in Europe and the United States, including a US$165 million capital project to expand Sappi North America’s manufacturing capabilities. The purpose of the investment on Paper Machine No. 1 at its Somerset Mill in Skowhegan, Maine, is to provide flexibility in the production of paper-based packaging products.

At the same time, the US$165 million project in Maine aims to maintain Sappi’s position in the graphic paper market, increasing annual production capacity at this mill to almost one million tons per annum. The Paper Machine No. 1 project, which is scheduled to come online in early in 2018, will provide an 180,000 metric ton capacity increase

“This move complements our long term 2020Vision strategy, which seeks opportunities to substantially increase our group EBITDA,” said Steve Binnie, CEO of Sappi Limited.

Sappi is one of the world’s largest producers of diversified woodfibre products, focused on converting wood pulp, paper pulp and paper-based products to direct and indirect customers in over 160 countries. Headquartered in Johannesburg, South Africa, Sappi has more than 13,000 employees and manufacturing operations on three continents in seven countries and group sales of US$6 billion.

Sappi North America, headquartered in Boston, generates revenue for its parent company through four business units, including high quality Coated Printing Papers, Specialised Cellulose, Release Papers and Specialty Packaging. “Somerset’s existing world class infrastructure together with its talented workforce and access to high quality fiber makes the mill an excellent and obvious choice for this investment,” said Mark Gardner, President and CEO of Sappi North America. “Increasing our flexibility and expanding the paper mill’s capability and capacity will ensure that we continue to make superior products at Somerset for years to come.”