Manufacturing News South Africa

Sappi to close PE paper mill

Sappi has confirmed that it will close down the Adamas paper mill in Port Elizabeth at a direct cost of about US$5 million (about R35 million) according to the company's chief executive Alex Thiel, reports Business Live. The company has reached agreement with employee representatives and has issued redundancy notices to employees.

According to Business Live the Adamas plant employed 213 people and had been operating in Port Elizabeth or the past 47 years. Thiel paid tribute to the people employed at the mill and, in particular, their efforts in keeping the plant competitive and in trying to find ways to keep in operational.

Negotiations with employees began in May this year.

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