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Sappi to Idle No. 4 Containerboard Machine at Tugela Mill

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Sappi, South Africa, will mothball Paper Machine No. 4 (PM 4) at its unprofitable Tugela mill in Mandeni on the KwaZulu-Natal North Coast of South Africa, beginning January 1, the company reported this past week. The company said that it would restart the machine when market conditions improve, and that it has sufficient capacity to meet local containerboard requirements.

Sappi accordingly has begun an official Section 189 process with its workforce at the Tugela mill. Some 400-plus mill employees have received the Section 189 notices, but the likely number of workers affected by the mill idling is expected to be considerably less.

 

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