Sappi, Johannesburg, South Africa, reports that it has agreed to sell its Enstra Mill recycled containerboard and kraft papers business in Springs near Johannesburg to Corruseal Group. Sappi opened negotiations with Corruseal when it was jointly decided that there was a good fit between Corruseal and Enstra Mill. The mill will continue to manufacture recycled and lightweight packaging paper. The existing Security Paper, Office, Specialty, and Folio businesses also conducted at the mill will remain with Sappi. A transfer plan is being arranged with current staff and customers. The disposal is not categorizable in terms of section 9.5 of the JSE Listings Requirements. The transaction value has not been disclosed. 

 

 

 

Commenting on the transaction, Sappi Southern Africa CEO Alex Thiel said that "the sale of the mill is in line with Sappi Southern Africa’s strategy to unlock value and is in line with the Sappi Limited strategy, which aims to reduce debt, strengthen its balance sheet, and direct resources to high-growth opportunities. During the past four years, Sappi Southern Africa has undertaken a comprehensive review of its business and implemented a number of changes to help the business turn around and to put the business firmly on the path to profitability and growth—in particular in its paper and paper packaging business. These actions have delivered significant positive impacts with Sappi Southern Africa returning exceptional results during Sappi’s 2014 financial year and strong results during this financial year."

 

Commenting on the expansion of their portfolio, Corruseal Group Joint CEOs Mehul Mehta and Rajiv Mehta said that "the Enstra Mill fits perfectly with our strategy to backward integrate and grow our business. Our commitment is to provide better packaging for a better world. We are committed to remain a sustainable, innovative, service driven, and world-class manufacturer of packaging."

For more than 40 years, Corruseal Group has been a producer and supplier of packaging. In this time, the company has grown rapidly through a combination of organic growth, acquisitions, and partnerships. With eight dedicated packaging companies in the Group, Corruseal has acquired a national footprint and become a substantial manufacturer and supplier of packaging to the South African market.