Sappi Southern Africa
Sustainability Report

RESPONDING TO THE
PRESIDENT'S CALL

In April this year we launched an ambitious - and in the history of our country, unprecedented - drive to raise at least US$100-billion in new investment over five years. We did so understanding that no meaningful growth and no significant job creation would be possible without a massive surge in productive investment in the economy.
President Cyril Ramaphosa South Africa Investment Conference 2018
Project Vulindlela at Saiccor Mill is Sappi's response to the President's call for increased investment in South Africa.
Our investment totals
ZAR7.7 billion
broken down as follows:
ZAR2,7 billion
in expanding capacity from 780,000 to 890,000 tons per annum.
ZAR5 billion
over five years in various continuous improvement initiatives and upgrade projects.
This builds on our investment in the mill of
ZAR4.3 billion
from 2012 to 2018.
These investments will secure the mill's future by increasing its global cost competitiveness and significant reducing its environmental footprint.

THE SHARED VALUE IMPACTS OF PROJECT VULINDLELA


PROSPERITY
  • Ongoing cost savings will amount to at least ZAR300 million per annum.
  • The project will add a ZAR1 billion per annum direct benefit to the economy of KwaZulu-Natal (KZN).
  • In total, Sappi's KZN operations comprising three mills, forestry operations and sales and export services provide a direct contribution of some ZAR12 billion per annum to the KZN economy. This number rises to ZAR60 billion per annum when reflecting indirect benefits.

PEOPLE
    • The expansion will result in a 9% rise in permanent jobs at the mill, which currently employs some 1,300 people.
    • The creation of employment opportunities for local job seekers through construction companies and business prospects for entrepreneurs from the local communities around the mill.
    • During the peak period of the project, there will be between 2,500 and 2,800 contractors working on site at one time.
    • All general workers seeking employment through Sappi or our contractors must attend training at the Sappi Skills Centre where they will be trained in the basic skills required for job opportunities during Project Vulindlela.
    • This training from Sappi will provide community members with the necessary skills to become more employable or to start their own businesses.
    • Many other services and products required during the construction phase and beyond will be sourced from local emerging businesses.

PLANET
  • CO2 emissions will be halved.
  • Waste to landfill will reduce by 48%.
  • SO2 emissions will reduce by 35%.
  • Water use efficiency will increase by 17%.