Competition Commission clears Sappi’s sale of Lomati Sawmill to Normandien Farms

SOUTH AFRICA – The Competition Commission has approved, without conditions, Sappi Southern Africa’s sale of its Lomati Sawmill in Mpumalanga to sawmilling and forestry group Normandien Farms.

The deal will see the sawmill transferred as a going concern on September 1, with all existing employees retaining their jobs.

The Lomati Sawmill, operational since 1971, has a production capacity of 86,000 m³ of kiln-dried pine lumber annually. Its products, certified by the South African Bureau of Standards (SABS), are widely used in the building, furniture, and packaging sectors.

Sappi Southern Africa CEO Graeme Wild said the sale aligns with the company’s strategy to focus on its core segments of dissolving wood pulp and containerboard, while unlocking value from non-core assets.

“Importantly, it ensures the continued operation of the mill and the retention of jobs, which will benefit the greater Umjindi community. Our commitment to Mpumalanga remains strong through our forestry operations in the province,” Wild added.

For Normandien Farms, the acquisition marks a strategic expansion in South Africa’s timber industry. “The Lomati Sawmill fits perfectly with our strategy to expand our footprint in the South African timber industry,” said CEO Sean Hoatson.

“We look forward to building on the strong foundation established by Sappi and unlocking new opportunities for growth and innovation.”

Normandien Farms, a privately owned business, operates forestry and sawmilling assets in Mpumalanga and KwaZulu-Natal, supplying sawn timber to both local and export markets under its Tekwani brand.

The company’s processing plants carry SABS and South African Technical Auditing Services (SATAS) accreditations, ensuring product quality and compliance. Beyond forestry, Normandien also owns the Thirsti bottled water brand, highlighting its diversified portfolio.

Industry analysts note that the need for operational efficiencies, market expansion, and product diversification drives consolidation in the South African sawmilling sector.

While the sector has faced challenges from fluctuating construction demand, high energy costs, and competition from imports, demand for locally produced, certified timber remains strong, especially as government infrastructure and housing projects gather pace.

The transaction is also expected to benefit the Mpumalanga economy, safeguarding jobs in a region where forestry is a key employer and contributor to rural development.

With Normandien’s focus on innovation and market growth, the Lomati Sawmill could see further capacity utilization and technological upgrades in the coming years.

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