Paper and packaging group Sappi, the world’s largest producer of dissolving pulp, has closed some of its mills and has halted certain expansion projects after they were disrupted by unrelenting riots in SA.
“The unfortunate incidents of civil unrest, violence and criminal activity, which are being widely reported through news channels, are also impacting Sappi’s SA operations,” the company said on Wednesday.
“Our primary concern is for the safety of our staff and contractors. Therefore, and as a precaution due to transport disruptions impacting raw material supplies, warehousing and customer deliveries, the Sappi Saiccor, Tugela and Stanger mills in KwaZulu-Natal temporarily ceased production as of July 12,” it said. “They will resume once it is safe and practical to do so.”
Work on the nearly completed Saiccor expansion and upgrade project was suspended on Friday.
Sappi’s forestry operations will be reviewed daily. No material damage has been done to any of its plants, and all its assets are insured.
Global shipments to customers through Durban have been affected by limitations in service, logistics and the closure of warehouse service providers.
“Sappi is deeply saddened by the events unfolding in SA and our condolences go out to the families of those in various communities who have lost loved ones. We deplore the criminal behaviour we are confronted with, which cannot be justified or excused. We have joined organised business in calling on the government to restore law and order,” said CEO Steve Binnie.
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