Sappi emerging as world player in specialised-cellulose market
Sappi Southern Africa CFO Colin Mowatt discusses Sappi’s operation diversification at the inaugural Manufacturing Indaba, in Ekurhuleni, last month. Camerawork: Nicholas Boyd. Editing: Shane Williams. Recorded: 19.05.14
PULP and paper group Sappi Southern Africa has diversified its operations to include the export of specialised cellulose, a grade of pulp which it produces and from which it generates a revenue of about $800-million a year.
Sappi CFO Colin Mowatt, who spoke at the inaugural Manufacturing Indaba, in Ekurhuleni, said the company exported about one-million tons of the specialised cellulose, used as raw material in the production of a fibre called viscose. Viscose is used in the textile industry and portions of various garments are made of viscose.
Specialised cellulose could also be used in foodstuff and in pharmaceutical products. It has various industrial applications and can be turned into acetate flakes for cigarette filters.
“Our South African operation is the largest producer of specialised cellulose. We hold 15% of the global market share and we are the single biggest producer in the world of specialised cellulose. “We recently spent R3-billion upgrading our pulp facility in Ngodwana, in Mpumalanga, to increase capacity,” Mowatt added.
He said it was also an opportunity to expand and diversify Sappi’s business by moving away from its classic paper business to an area – such as specialised cellulose – in which it has the necessary expertise.
He added that the company had also invested heavily in research and development and established a “centre of excellence” at its Umkomaas plant, in KwaZulu-Natal.
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