Our business model

  positive negative neutral earth kind  

Cham Paper Group acquisition US$132 million
Inputs   Outputs
  • Eighteen production facilities:
    – Eight paper mills
    – Four speciality paper mills and one other operation
    – One paper and speciality paper mill
    – Two dissolving wood pulp and paper mills
    – One dissolving wood pulp mill, and
    – One sawmill and one other operation
  • Nanocellulose demonstration plant
  • Sugar demonstration plant
  • Biomass plant
  • Cham Paper Group and Rockwell Solutions acquisitions
  • Total assets: US$5.67 billion
  • Net debt: up US$246 million to US$1.57 billion
  • Cash and cash equivalents: US$363 million
  • R&D spend: US$41.6 million
  • 6.4 million tons of saleable production
  • Increase in net debt of 19%
  • Profits down by 4%
  • Dividends up by 13%
  • New products to meet changing customer expectations and market trends, our new brands include: Atelier, Fusion Uncoated, MF Bright, MF Bright OF, Proto, Seal Spectro, Valida and Verve
Outcomes   Actions to enhance outcomes
  • Our investors received US$81 million in dividends
  • Our high levels of innovation give our customers competitive edge in global markets—we were the world’s first manufacturer to present an innovative speciality paper with a mineral barrier and heat sealing properties integrated directly into the paper
  • Globally we contributed US$136 million to government taxation
  • We paid US$1,026 million to employees as salaries, wages and other benefits
  • Lenders of capital received US$88 million as interest
  • We invested US$538 million to grow business
  • Overspend on Cloquet Mill conversion project
  • Project delays at Somerset and Ngodwana Mills
  • Focus on project delivery and implementation
  • Investment in R&D to ensure cutting edge solutions for customers
  • Ongoing focus on balancing competing stakeholder interests to ensure sustainable growth

US$500 average training spend per employee
Inputs   Outputs
  • 12,645 employees including 624 fixed-term contractors
  • US$500 average training spend per employee
  • Ongoing stakeholder engagement
  • US$5.6 million invested in corporate social responsibility
  • Productivity: 3.63 hours per employee in terms of air dry tons of saleable production
  • Internal global awards (Technical Innovation Awards and CEO Award for Excellence), together with regional awards, drive excellence and innovation
Outcomes   Actions to enhance outcomes
  • Two fatalities
  • We play an active role in South Africa’s transformation agenda and are classified as a level 3 BBBEE contributor
  • In Southern Africa our operations provide employment for just over 10,000 contractor employees
  • Our specialised sustainable packaging solutions:
    – Preserve and protect
    – Convey information, and
    – Offer convenience
  • Acquisition of Cham Paper Group—employees’ jobs were saved and opens up opportunities as part of a global organisation
  • Shared Service Centres set up globally to improve efficiency—negative impact on people not able to relocate to new locations
  • Continued investment in embedding a safety culture across the group
  • Focus on entrenching transformation within our Southern African operations to support inclusive growth
  • Investment in training and development of our employees
  • Strong governance; Code of Ethics training
  • New Supplier Code of Conduct

1,889 MW generated on site
Inputs   Outputs
  • Access to 516,000 ha plantations, of which approximately
    – 379,000 ha are owned or leased, and
    – 129,000 ha are contracted supply
  • US2,628 MW energy purchased, 1,889 MW generated on site
  • Energy intensity: 22.38 GJ/adt
  • 2.87 million litres of total water extracted for all purposes
  • 34.37 m3/adt specific process water extracted
  • Waste: 1,649,458 tons of waste, of which almost 422,376 tons sent to landfill
  • Emissions: 4.3 million tCO2e direct Scope 1 GHG
Outcomes   Actions to enhance outcomes
  • 46.8% renewable energy, of which 71.5% own black liquor
  • Training of smallholders to educate them on more sustainable forestry practices
  • 95% of water drawn returned to the environment
  • Impact on GHG emissions offset by carbon sequestration
  • 75.2% of fibre used certified
  • World-leading tree improvement programmes have led to shorter growth times and enhanced fibre gain
  • One-third of owned and leased plantations set aside for biodiversity conservation
  • Negative impact on plantation biodiversity at stand level (not plantation level)
  • DWP used for clothing and household textiles, baby wipes and wet wipes—reducing environmental impact
  • Lighter weight packaging products—reduction of carbon footprint
  • Expanded packaging portfolio offers customers and consumers more sustainable alternatives to fossil fuel based packaging (plastics)
  • Ecosystem services benefit various stakeholders
  • Increased energy self-sufficiency by 5.6% over five years due to focus on reducing purchased energy
  • Established training centre for smallholders in South Africa
  • Participated in initiatives to enable certification for small growers
  • Adjusted our tree breeding strategy to mitigate the impacts of climate change
  • Revised our Group Woodfibre Procurement Policy in line with stringent procurement procedures
  • Increased annual speciality paper capacity by 160,000 tons (Cham Paper Group acquisition) and DWP capacity by 60,000 tons (further expansion planned), thereby increasing the range of sustainable products available to environmentally conscious consumers