Sappi sells pine forests in South Africa

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Sappi/IHB
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Sappi, the world’s biggest producer of dissolving wood pulp, will raise about $60 million from the sale of South African pine forests as more focus on higher-margin products reduces the need for trees.

“We are going through a process to dispose” of 30,000 hectares (74,000 acres) of forests in the Mpumalanga province, chief executive Steve Binnie from Johannesburg. “It should be concluded probably early in the new financial year” starting October 1.

The company owns a specialised cellulose mill in Mpumalanga, northeast of Johannesburg, that needs more eucalyptus trees than pine. Sappi is increasing its focus on dissolving wood pulp, used to make luxury clothing, sportswear and pharmaceuticals, as the product carries a higher profit margin than paper.

“In South Africa, we do have excess softwood plantations, so we will continue to look for opportunities to sell those,” Binnie said.

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