Sappi approves dissolving pulp expansion at Ngodwana mill in South Africa for 2013 startup

By James McLaren, Senior Editor, PPI Pulp & Paper Week, RISI

SAN FRANCISCO, May 9, 2011 (RISI) - Sappi said today its board has approved an anticipated dissolving pulp expansion at its Ngodwana pulp and paper mill in South Africa.

"The expanded mill will produce kraft linerboard, newsprint as well as 210,000 tons of chemical cellulose. We expect chemical cellulose production to commence in early 2013," stated CEO Ralph Boëttger in the company's second quarter financial report for the period ending in March.

Sappi reported its chemical cellulose business achieved improved sales volumes and prices during the quarter compared to a year ago, but sales volumes were below the first financial quarter ended December 2010 as a result of the shorter quarter and the timing of shipments. Demand for chemical cellulose is strong as a result of demand for viscose fiber, particularly in Asia, the company said.

The Ngodwana mill is shown for total pulp capacity of 556,000 tonnes/yr of softwood and hardwood with 242,000 tonnes available for market, 240,000 tonnes/yr of linerboard and 140,000 tonnes/yr of newsprint.

Boëttger noted the mill's cost base was in the lowest quartile and that the company would also consider further expanding its chemical cellulose capacity in other parts of the world, according to a report.