Sappi Limited has announced the sale of its Lanaken mill in Belgium. This decision follows its November 2023 plan to reduce graphic paper production in Europe.
Closure of Lanaken Mill
In November 2023, Sappi revealed plans to cut its graphic paper production in Europe. This led to the initiation of a consultation process. The process aimed at closing the Lanaken mill in Belgium.
The consultation was successful, and the mill ceased production in December 2023. Sappi then began the process of selling the land and assets of the Lanaken mill.
Agreement with UTB Waalwijk B.V.
Sappi has now finalized a sale agreement with UTB Waalwijk B.V., a Dutch company. UTB specializes in converting industrial properties. Under this agreement, UTB will acquire all shares in Sappi Lanaken N.V.
Details of the Agreement:
| Buyer | UTB Waalwijk B.V. |
|---|---|
| Sale Value | €50 million |
| Cash Payment | €40 million |
| Transaction Completion | October 2024 |
The transaction is valued at €50 million. UTB will pay €40 million in cash. The sale is unconditional and is expected to close in October 2024.
Strategic Move for Sappi
The sale aligns with Sappi’s strategic goals. By reducing production capacity, Sappi aims to optimize its operations. The decision to close the Lanaken mill is part of this broader strategy.
Sappi’s announcement in November 2023 highlighted the need for such measures. The company’s goal is to streamline its European operations. This move is expected to improve efficiency and profitability.
Impact on Sappi’s Operations
The closure of the Lanaken mill marks a significant shift for Sappi. The company is focusing on optimizing its production capabilities. The sale of the mill and its assets is a key step in this direction.
Sappi’s decision to sell the Lanaken mill is not categorized under the JSE Listings Requirements. This means it is not subject to the stringent regulations for categorized transactions. As a result, this announcement is voluntary.
Conclusion
Sappi Limited’s decision to sell the Lanaken mill marks a strategic shift. The company is optimizing its operations and focusing on profitability. The sale agreement with UTB Waalwijk B.V. is a significant step in this direction.