BELGIUM – Pulp and paper producer Sappi has sold the land and assets of its Lanaken Mill to UTB Waalwijk, a Dutch company specializing in industrial property conversions, for €50 million (US$54.48 million).
Under the agreement, UTB will pay €40 million (US$43.58 million) in cash. This financial aspect of the transaction underscores its significance.
According to a trading statement from Sappi, the transaction is unconditional and expected to close in October.
In November, Sappi announced plans to reduce its production capacity for graphic paper in Europe and began a consultation process to close the Sappi Lanaken mill in Belgium.
Sappi’s strategic focus included reducing its exposure to the graphic paper segment while expanding its presence in packaging, specialty papers, pulp, and biomaterials.
Sappi Europe aims to build a sustainably resilient company by evaluating all business facets of the future based on market dynamics and identifying the strongest future market segments.
While continuing to serve the graphic paper market through its competitive assets, Sappi Europe prioritizes growth in the packaging and specialties segment, specifically in flexible packaging, functional papers, self-adhesives (including glassine), labels, and dye-sublimation categories. Production will be transferred to other Sappi facilities.
Before its closure, Lanaken Mill employed 581 workers and had a production capacity of 165,000 tons per annum (tpa) of pulp, used to produce 530,000 tpa of coated woodfree paper, primarily sold into the European print market.
Recently, Sappi once again achieved platinum status, the highest rating awarded by the sustainability assessment platform EcoVadis.
This marks the sixth consecutive year that Sappi has received this prestigious recognition, placing it among the top 1% of companies worldwide in the manufacture of pulp, paper, and paperboard.
In 2018-2019, Sappi was awarded an EcoVadis gold medal, the highest level until the platinum category was introduced in 2020.
Sappi’s global business strategy is focused on sustainable growth, enhancing trust, driving collaboration, and fostering innovation as a diversified global woodfibre group.
“At Sappi, we recognize that sustainability is about investing in people-centric, positive change,” says Tracy Wessels, Group Head of Investor Relations and Sustainability at Sappi.
“We are immensely grateful for the ongoing collaboration with EcoVadis, and we look forward to continuing this strategic approach, regionally and globally, thereby innovating our sustainability efforts in areas where we can have the greatest impact.”
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