Sappi may close a pulp mill in Eswatini.
South Africa pulp and Paper Industry Corporation (Sappi), the world's largest glossy magazine paper manufacturer, said that if it still failed to make a profit, the company would be forced to close a pulp mill in Eswatini by December. The closure of this pulp mill will reduce Sappi's pulp production in the region by 10% and reduce 1500 jobs
due to the sluggish demand for pulp and paper, Sappi has closed the loss making mobile factory in the United States and reduced the output of European factories before that. Eswatini media reported that the factory was about to close, while Sappi said on Friday: "the company's business in Usutu is facing severe challenges."
sappi points out: "In addition to the damage to our sales caused by the poor market situation, the cost of Wusutu's business has obviously exceeded the normal level of the industry. Therefore, recently, Sappi has to provide financial assistance to Wusutu factory to maintain its business. According to normal business norms, such business cannot continue indefinitely. Sappi has informed shareholders that Wusutu's business must be able to generate the funds it needs."
the company pointed out that if this business wants to continue, it must amplify this weak signal through an amplifier, and the cost must be reduced by 70million Rand in the next three months. This means significant cuts in all business areas, including reducing employees' income. After a meeting with the management of Usutu, the Eswatini agricultural and plantation workers' Union (sapwu) informed the company's employees and shareholders that the Usutu factory might face liquidation if costs were not successfully reducedAlex todd6, general manager of Usutu factory, said that his management team was supported by a task force composed of Sappi personnel from all over South Africa to jointly promote the business restructuring. Todd said, "we require all employees to work closely with the management to find ways to avoid the closure of the factory." "Although the factory does face the threat of liquidation if it cannot successfully reduce costs, the media's statement that the factory is about to close down is premature and inaccurate."
the annual output of Wusutu factory "Gerry said that 200000 tons of natural color commercial pulp, with an annual revenue of 600 million Rand. The company will look for more effective new production methods to reduce production costs
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