Paper and pulp producing group Sappi Southern Africa has announced that the Competition Commission has approved its sale of the Lomati Sawmill, in Mpumalanga, to another South African group, sawmilling and forestry company Normandien Farms. The approval was granted without conditions.

“We are pleased to have concluded the sale of the Lomati Sawmill to Normandien Farms,” affirmed Sappi Southern Africa CEO Graeme Wild. “This transaction is in line with Sappi Southern Africa’s strategy to unlock value and focus on our key product segments of dissolving wood pulp and containerboard. Importantly, it also ensures the continued operation of the mill and the retention of jobs, which will benefit the greater Umjindi community. Our commitment to Mpumalanga remains strong through our forestry operations in the province.”

The sawmill will be transferred as a going concern, with all the current employees keeping their jobs. The handover is scheduled for September 1.

“The Lomati Sawmill fits perfectly with our strategy to expand our footprint in the South African timber industry,” explained Normandien Farms CEO Sean Hoatson. “We look forward to building on the strong foundation established by Sappi and unlocking new opportunities for growth and innovation.”

For Sappi, Lomati was a legacy business. It started operation in 1971 and subsequently underwent several expansions and upgrades. It now has a production capacity of 86 000 m³/y of kiln-dried pine lumber, made from sawlogs. Its products are approved by the South African Bureau of Standards (SABS) and mainly support the building, furniture and packaging sectors.

A privately-owned company, Normandien Farms operates in the forestry and sawmilling sectors. It has forestry operations and processing plants in Mpumalanga and KwaZulu-Natal, and supplies sawn timer to both local and international markets. Its sawmilling business operates under the Tekwani brand. It also owns the Thirsti bottled water brand. All its processing plants are accredited by the SABS or by the South African Technical Auditing Services.