My Sappi – Special edition: Overview of 2020

Sappi Southern Africa
Special edition: Overview of 2020
Sappi


Special edition: Overview of 2020
2020: An extraordinary year at a glance
What a year! From business as usual, to rapidly adapting to a new way of working and living as a result of a foreign new threat that swept across the globe: that of coping with the impact of a virus that changed the economic, business and social landscape in a myriad of ways.
The bottom line is: our resilience and agility as OneSappi prevailed, as we pushed through these trying times together.
Let’s pause and reflect on the highlights that helped us grow as a business this year, amidst all the disruption.
January
2020 kicked off on a positive note as we navigated our way through the normal challenges of growing our markets, meeting product and quality demands, finding ways to be more cost effective and pursuing opportunities to grow our profits.
AskAlex roadshow gains momentum
Communicating openly and transparently, making sure everyone is on par with the state of the business and the role they play in Sappi’s success – this was the objective of the AskAlex sessions hosted this year.
Starting at the end of 2019, SSA’s first CEO roadshow continued in January as Alex Thiel travelled to Sappi’s mills and forestry plantations countrywide to talk face-to- face to staff about the opportunities and challenges faced by the business. This was followed by a virtual AskAlex#2 later in the year to launch the new Thrive25 strategy and to discuss the impact of COVID-19 and our response to it.
The AskAlex roadshows will continue in 2021.
Alex Thiel (CEO of Sappi Southern Africa) during one of the AskAlex sessions at our forestry operations.
The more each one of us get involved, pose questions and contribute to how we do things, the stronger and more robust we will make Sappi.”
– Alex Thiel (CEO Sappi Southern Africa)


January continued...
Key messages highlighted during The AskAlex sessions:
• The next few years will be challenging due to COVID- 19’s impact on the business and slow world economy.
• Sappi is well positioned to deal with these challenges, as we have a solid strategy, world class assets and resilient people.
• It’s vital that we all reduce business costs by asking ourselves: is this task/expenditure necessary, how can I do it more effectively, and can it be done cheaper?
• We can all make a contribution: through mindfulness, working as a team, reducing waste and making sure we add value through our work.
• Working as OneSappi means: working as a team and learning from one another, from different departments and different mills. Also, to have open minds and do things that will make us more effective and improve the business.
Dalroy Moon (Sappi Forests HR Manager) joined by Tweedie staff indicating that working together as OneSappi will bring success to the business. (The photo was taken before the COVID-19 outbreak, hence no masks were worn.)
• We can be more effective by doing a task right the first time.
• Safety remains a key factor to our success.
• Relations with our communities and stakeholders must
be maintained and strengthened.
Special edition: Overview of 2020
Start of the Trainee Production Manager programme
The Sappi Learning team launched a new Trainee Production Manager programme. A handful of full time and part time candidates went through a thorough, structured learning programme, with just over 350 learning, reading and assignment activities.
The programme aims to fast track participants to become ready to take on production superintendent positions.
February
New GMs ready to make a difference
Two new General Manager appointments came into effect in February.
Beverley Sukhdeo moved from Tugela Mill to Saiccor Mill as their new General
Manager. Reflecting on the past year, Bev says: “2020
was a year like no other. I’m incredibly proud of my team
who quickly adapted to the new way of working. We have demonstrated that we are resilient and solution-seeking in difficult circumstances. Our thoughts and prayers remain with those who have lost loved ones during this time.”
Christo Willemse moved
from Stanger Mill to
Tugela Mill, where he
was appointed as the
new General Manager.
Looking back, Christo
says: “What a journey it has
been! Despite the challenges we
faced, we were able to develop an
exciting business strategy for Tugela, directly linked to Thrive25. We all have an important part to play in Sappi’s success.”
Engineering Manager Mthokozisi Jali welcoming Christo Willemse to Tugela Mill.
3.


Special edition: Overview of 2020
March
We continued with business as usual, celebrating our successes and building on past achievements, but a new and totally different challenge was already brewing on the horizon. It didn’t take long to hit home. Sappi responded swiftly.
Swift response after first reported COVID-19 case
At first, we only heard and read about it – this novel coronavirus outbreak in China which started spreading to other parts of the world. Then, on 06 March, it struck SA soil as the first positive COVID-19 case was reported in KwaZulu-Natal.
Soon thereafter, the country and Sappi went into overdrive to get systems and procedures in place to deal with this new threat and stop it from spreading. Sappi’s Pandemic Response Plan was activated soon thereafter.
In hindsight, how did we fare?
Ellenore Melrose (Regional Health and Wellness Manager) reflects: “The way in which all employees, managers, unions, and the different departments and units collaborated to minimise the impact of COVID-19, has been
a highlight in my career. It was
difficult, as we did not have clear
guidance in South Africa, or in the world for that matter. There was a lot of fear – for self, family and for the business – but Sappi employees took it one day at a time, and they ensure that they stay informed and take the messages and protocols to heart. We have successfully completed the sprint and are now able to successfully continue the marathon.”
Terry Stanger (MD Sappi Forests, who has retired as VP of Sappi Forests in August 2020), demonstrating that one of the best ways to keep safe is to wash/ sanitise your hands. We have all subsequently become experts in keeping our hands clean!
4.
What our employees said at the time:
Anele Khanyile (Analytical Chemistry Trainee): “I try
to comply as best I can. The quicker we get used to the new health measures in the workplace, the easier it would be to continue these habits in public.”
Millicent Ndwandwe (Leave
Relief, Utilities): “The
pandemic has brought a lot
of stress, but has also taught
me to adjust quickly to doing
things differently by following
the protocols. It’s not just about keeping myself safe and healthy, but my family and others too.”


March continued...
From smart ideas to thriving solutions
In its 20th year, our 2019 SSA Technical Innovation Awards celebrated the regional finalists who used innovative thinking to enhance existing processes and equipment to save costs, improve efficiencies and increase profits.
The winning team, as you know,
was Ryan Houston, Lee Johns and Richard Taylor – the Steam Packer Improvement team from Saiccor Mill. They engineered and manufactured prototype steam packers to improve wood loading in the digesters,
thus improving the mill’s overall production.
Benefit: Cost saving of ZAR48 million a year (2.47% return on investment).
Runners-up:
Gordon Batho and Kerisha Govender – Effluent Pipeline Replacement team from Sappi Tugela Mill. They replaced the mill’s old effluent pipeline with
a high-density polyethylene (HDPE) pipeline, which is more resilient
to corrosion and chemical attack. The construction method was also innovative – above ground, without interrupting mill operations. Benefit: A much-needed installation that was within time, under budget, and with no safety or environmental incidents.
Reagan Naidoo and Gary Ruttledge – Executing with Speed team from Sappi Stanger Mill. They solved
a long-standing press vibration problem on the third press of the paper machine. Their air-over-water solution combined pneumatic and hydraulic loading. This was not
only significantly cheaper than a
new hydraulic installation, but the improvements to the press vibrations exceeded all expectations.
Benefit: ZAR13 million in improved production rates since installation.
Innovation is a percentage game. If you generate 100 ideas, a one percent success rate means just one idea becomes successful. So, to be innovative it’s important to get those numbers up!”
– Ryan Houston, member of the 2019 SSA TIA winning team
Special edition: Overview of 2020
The SSA TIA winning team from Saiccor Mill are (from left): Ryan Houston, Lee Johns and Richard Taylor.
What they say about innovation
Ryan Houston: “Innovation is rarely a one-hit wonder driven by individuals. Rather, it is the process of a group of people failing multiple times while working on the same problem, seemingly without end. Perseverance and team spirit are what moves innovative ideas from concepts to reality.”
Gary Ruttledge: “Our project taught me that innovation is the ability to analyse and solve complex issues by thinking outside the box, understanding the risks and making courageous decisions.”
Reagan Naidoo: “When you hit a roadblock in solving a problem, restart by examining all the facts available.”
5.


Special edition: Overview of 2020
March continued...
Bryan Habana (second left) joined by Christo Willemse (GM Tugela Mill) and the The finalists from Stanger Mill, Reagan Naidoo and Gary Ruttledge, finalist team from Tugela, Kerisha Govender and Gordon Batho. congratulated by Gary Bowles (Group Head Technology).
Springbok Bryan Habana applauds Sappi’s resilience
6.
As guest speaker at the 2019 SSA TIA, former Springbok wing Bryan Habana shared how the inevitability of change, and the ability to embrace and adapt to it, act as key differentiators of success.
Bryan related how the evolution in rugby over
the decades – from advances in the fabric used
for the Springbok jerseys to game patterns, coaching methods and the digitisation of the sport, necessitated the coaches and players to constantly adapt to change.
He also raised a few laughs as he showed clips of how even the famous ‘Haka’ of the All Blacks have transformed through time – from a fairly comical, insipid set of moves in the 1920s, to the awe-inspiring display it is today.
“I want to congratulate Sappi on being a company that continues to show agility and resilience in the face of change,” Bryan said.
Former Springbok rugby player Bryan Habana, joined here by Alex Thiel, was the guest speaker at the event.


Special edition: Overview of 2020
March continued...
Protecting the thread that
connects us all
The 2019 SSA Corporate Citizenship Report released in March gave an overview of Sappi Southern Africa’s strategic approach, as well as planned actions to invest in and enhance the commitment to balancing the needs of Prosperity, People and Planet across the business.
Snippets from the report: Did you know?
• Sappi has established a programme to grow macadamia nut trees in our nurseries.
• We contribute 1% of South Africa’s total foreign revenue and supply the fruit export industry with most of its packaging needs.
• In FY2019, a total of 129 SMMEs have been assessed and trained by our external partners, and 28 SMMEs have been integrated into the value chain across the business.
• In 2019, Sappi ReFibre sourced 126,995 tons of recovered cardboard boxes to a value of ZAR211 million from 70 individual recycling companies.
• Paper pots and solar heating are used at our Ngodwana nursery as part of our ‘green’ approach.
Click here to read more about these and other interesting initiatives. http://sappi-reports.co.za/reports/2019SSACorp CitizenshipReport/index.php
We also released the 2019 Sappi Group Sustainability Report, which highlighted the theme, ‘mutualism’. The theme reflects on the interconnected relationships we have with our stakeholders and the fact that this connection enables all parties to thrive.
If you have not yet read it, check out the report at www.sappi.com/2019GSDR.
7.


Special edition: Overview of 2020
April
As South Africa entered full lockdown at midnight on 26 March 2020, most of us prepared ourselves for three weeks of being isolated from our fellow citizens and the rest of the world. But the weeks became months, forcing us to become more flexible and forward-thinking on every level.
Lockdown and beyond...
As an essential business, Sappi continued operations and implemented a shift schedule at most of our sites.
From the start, our approach to the pandemic was guided by our values. The key priority will always be the safety of our people – across the business and in the areas where we operate.
A central COVID-19 resource library was swiftly established on Sappi Net, updating staff on the health and safety information and protocols as we learnt more about the virus. Regular updates from management were also communicated – about the business impact and what was expected of staff.
We are approaching threats
to the business from all angles; focusing on investing in new products, improving our revenue line, increasing sales and savings costs.”
– Alex Thiel, May 2020
Reaching out to the vulnerable
In April, we started with the first of several outreaches during 2020 to donate scarce and essential items and products for COVID-relief to healthcare clinics, schools, welfare organisations and vulnerable communities. Thousands of face masks, hand sanitiser, nutritional porridge and paper products were donated to help ease COVID-19’s enormous impact on people and their livelihoods.
(We reported on some of these outreaches in the COVID-19 My Sappi Special Edition published earlier this year.)
8.


Special edition: Overview of 2020
April continued...
How did you experience lockdown?
Rob Perry, Nursery Manager: “Luckily, we have not been affected too badly in our day-to-day running of operations. Some of our customers have unfortunately decreased their demand for seedlings due to their contractor and community hesitance, but this allows us time to prepare for later demand, and to focus on other tasks to ensure a continuous supply in future.”
Ntsoaki Mosina, Scientist, Fibre Processing: “My biggest challenge was establishing a work-life balance. COVID-19 has challenged my perception of life as we know it. It has integrated the work and home environment and has removed and redefined the boundaries between the two.”
Siphesihle Mdutshane, Buyer:
“I coped quite well. I had some worries at first about dealing with COVID-19 and the lockdown, but the information made available by Sappi gave me peace of mind.”
The BM Enterprises team taking all health and safety precautions before commencing with their work in Sappi Forests’ Highflats plantation.
EWB peer educators leading by example, letting their masks do the ‘talking’ on their behalf.
The Richmond Nursery staff showing great commitment in observing workplace safety measures. (Taken before the wearing of masks became compulsory.)
The Sappi Skills Centres commenced with the manufacturing of cloth masks for employees and contractors. To date, over 80,000 masks have been distributed.
Voluntary COVID-19 testing taking place at some of our operations.
9.


Special edition: Overview of 2020
May
Actions undertaken to deal with COVID-19’s impact
“The impact of COVID-19 on people, business and society has been severe, but Sappi’s approach to the outbreak is guided by our values and purpose,” was Sappi CEO Steve Binnie’s response to our Q2 results.
“Our priority remains the safety of our people. This ensures that our operations continue in a safe and uninterrupted manner. We also remain in close contact with our customers and suppliers, and are helping local economies to mitigate the negative economic impacts.”
Starting up a new shelving plant
Our Lomati sawmill started up a new shelving plant to increase its product offering. A few months later, it loaded its first shelving order for delivery to Timber City Nelspruit, to be sold commercially.
The entire shelving team was there to see their handy work being loaded, rightly proud of their efforts to add value to Sappi during trying circumstances.
Great excitement as the shelving operations got underway at Lomati Mill.
Way to go! The first batch of shelving was sold in August this year. Since then, 43m3 of shelving has been sent to market.
10.
Sappi employees at Lomati Mill are not letting their guard down. Here, some of them are posing in front of the mill’s COVID-19 awareness wall.


ance
performance reviews
ent
On the HR front, we launched Performance Enablement – the new approach to setting high quality goals, instilling a culture of frequent,
and empowerment
coaching-style feedback and simplified performance reviews.
y results.
“It’s a process with multiple benefits”
Special edition: Overview of 2020
May continued...
A smarter approach to
Sandile Rubela (HR Consultant) says: “The Sappi Performance Enablement process creates greater control and line of sight for employees and managers. It allows the setting of SMART goals and objectives, so that employees can clarify their ideas, focus their efforts and use their time and resources productively. It generates more openness and a visible approach between staff and management. It allows employees to develop themselves and identify skills gaps. The process is also far more user- friendly than the previous SAP performance management system.”
Engagement and empowerment deliver quality results.
June
Valuing life now more important than ever
I value life
Although our Global Safety Awareness Week (GSAW) was postponed this year due to the restrictions of the COVID-19 safety protocols, our chosen safety theme for 2020 and beyond, ‘I value life’, was particularly fitting in the current circumstances of fighting a global pandemic.
‘I value life’ is a reminder that every life is valuable, and that each and every employee and contractor affiliated with Sappi has a responsibility to ensure their own safety and the safety of their colleagues – at work and at home.
11.
m m
t


Special edition: Overview of 2020
June continued...
A round-up of our
2020 safety status
Regional Risk Services Manager, Merten Jansen van Rensburg reflects on the past year:
In Sappi Southern Africa we have continued our focus on the eight ‘Sappi Life Saving Rules’ and the Stop and Think Before you Act (STBA) initiatives in manufacturing and Sappi Forests, respectively.
Despite all the disruptions in the world around us, SSA achieved a ‘best ever’ LTIFR of 0.41 for own employees. This is a 9% improvement over our previous record of 0.45
– a result of employees’ dedication and hard work, and a focus on our primary safety initiatives.
Safety highs and lows
We are especially proud of the following milestones that were reached by our operating units. Safe manhours without any Lost Time Injuries (LTIs) were achieved by:
• Siyabamba Forestry contractors:
five million LTI-free manhours
• Zululand Forestry operations:
three million manhours
• Stanger Mill contractors: three
million manhours
• Project Vulindlela: three million
manhours
• Stanger Mill – own employees:
one year without a LTI
• Ngodwana contractors: one
million manhours
• Saiccor contractors: one million
manhours
• Forestry Research Nurseries and Planning: one million manhours.
• Tugela Mill employees: one million manhours
• Saiccor Mill employees: one million manhours
• Lomati Mill employees: one million manhours
• Lomati Mill contractors: five years without a LTI.
Sadly, one of our contractor employees was killed in a vehicle accident, and another contractor employee lost an arm in an accident.
Striving towards safety maturity
During 2020, we also completed the DuPont area transformation pilot at Ngodwana Mill. The learnings from this project have been incorporated into our ‘Lean & Me’ programme, which will be rolled out at all our mills during 2021.
The aim of the programme is to
take us to a mature, interdependent organisation where we truly care not just about our own lives, but also that of our colleagues, family and the world at large. The programme is designed to make Sappi a safer, more productive and sustainable organisation where we can all grow and flourish.
Targets for 2021
We continue to strive towards achieving our goal of having no ‘life changing’ incidents in any of our operations. Our targets for 2021 are:
• LTIFR for own employees of less than 0.36
• LTIFR for contractors less than 0.23
• No fatalities.
12.
The Zultech fire team (photographed in February this year), who formed part of Sappi Forests Zululand’s safety success achieved in February this year.


Highlights
Safety:
• Rollout of the Sappi life saving rules to eliminate serious injuries, illnesses and fatalities
• Stop and Think Before You Act:
A simplified approach to manage individual at-risk behaviour in our forestry operations. The initiative won a Gold Quill Award (2018) for effective safety communication.
Sappi Forests:
• Passed the Forest Stewardship re-certification audit (2017), thus entering into another five-year cycle of surveillance audits
• Rebuilt Ngodwana nursery to
produce cuttings and seedlings;
• Introduced hybrid cuttings to increase in EBITDA
•
•
Relaunched Project Grow as
Khulisa: 30,000+ ha outgrower
• Established an Enterprise and Supplier Development (ESD) programme to develop SMMEs in surrounding communities.
Rationalise
declining businesses
50% of all plants planted are now from cuttings (previously 20%)
Keep the
net debt/ EBITDA ratio to no more
than 2x
Our strategy focus remained open and flexible to opportunities so as to with the best possible options to deliver value into the future.
Our values
At Sappi we do business with integrity and courage; making smart decis with speed.
Live our values:
• when making decisions and choices,
• when engaging with your colleagues,
• when discussing and debating options and ideas, • when searching for solutions, and
• when dealing with problems.
avoid pests and diseases
• Four more nature reserves on
by 2020
Sappi land declared in Mpumalanga and one in KZN – the Roelton Blue Swallow Reserve, to protect the critically endangered Blue swallow.
Community empowerment:
• Launched the Abashintshi social mobilisation initiative in communities close to our mills in KZN. The programme won a Gold Loerie and several IABC Gold and Silver Quills
Through the power of OneSappi – committed to collaborating and partnering with stakeholders – we aim to be a trusted and sustainable organisation with an exciting future in woodfibre.
As OneSappi we will avoid duplication, increase synergies, maximise the value of our global brand and engage with customers and other stakeholders in a consistent manner – each part of OneSappi helping to drive the business of the other parts of OneSappi. The whole will be more than the sum of its parts.
Aspiration
Substantial
Create a more
diversified business
Our mission
Pay regular dividends as from 2017
Continue to
optimise the balance sheet
and small-scale contractors
group targeting a substantial increase in EBITDA through an expanded product portfolio with
increased margins, providing enhanced rewards to all its stakeholders.
Achieve
Special edition: Overview of 2020
June continued...
Good progress over
the past five years
Mid-year, SSA CEO Alex Thiel reflected on SSA’s business progress over the past five years as our 2020Vision evolved into the Thrive25 strategy.
and land reform project to
Introduction
empower communities and procure
additional timber for Sappi
Our goal
Our strategy
Established Khulisa Ulwazi,
Business accolades:
Five years ago, we began an intentional evolution of our business. We set out to refocus and Through intentional evolution we will continue to grow Sappi into a profit restructure our business so that we are better placed to respond to the challenges of the global generative diversified woodfibre group – focused on dissolving pulp, pap
a technical/business-oriented •
training programme for small
Sappi Forests won the Women’s
Empowerment Award and Rural
Economies Award for Project
Khulisa. The team was also
economy and serve existing and new markets and customers.
adjacent fields.
growers, land reform beneficiaries
2020Vision
ACHIEVEMENTS 2015 - 2020
We set out a clear vision for growth and diversification: Sappi will be a diversified woodfibre
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finalist and finalist in the Innovation category.
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cash to strengthen balance sheet
recognised as an o
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Special edition: Overview of 2020
June continued...
Winning a Gold Quill
for excellence
Sappi’s Communication team has
been raking in the Quill Awards for
communication excellence over the
past few years. In June, Sappi Forests
received international Gold Quill recognition for the innovative video made about the Sappi Khulisa programme.
If you have not yet seen this endearing video, click here to watch it.
Making time for nature
The theme for this year’s World Environment Day (05 June) was ‘Time for Nature’, which focuses on the role nature plays in providing the infrastructure that supports life on earth and human development.
This is particularly important to Sappi, as the unlocking of the value of woodfibre from our forests is at the core of its sustainable business strategy.
Did you know?
About a third of the forest plantations that we own and lease in Sappi Southern Africa is managed to conserve natural habitats and
the biodiversity they contain. We have six declared nature reserves
on our property, which form
part of the national stewardship programme. (Read more about these conservation areas here.)
“Winning a Gold Quill Award gives one a great sense of achievement, knowing that you have been acknowledged
by your peers in the communication world for excelling at an international level. Being selected as the ‘Best of the Best’ in a highly competitive category makes it that much more significant
and truly shows that we were able to produce a world-class product with our Khulisa video.” Zelda Schwalbach, Communications Manager, Sappi Forests
14.


July
Our focus on building a thriving business that is able to withstand market volatility and global economic conditions gained further momentum as our strategy evolved into the next chapter.
Thrive25 – purposefully moving forward
The launch of our Thrive25 strategy and the brand refresh was an exciting change to all the COVID-19-related news that dominated headlines over the past months. The strategy maps out the way forward along with some key principles that will help Sappi grow and thrive into the future. These include a strong sustainability focus, collaboration and innovation, and being a trusted
partner in building a biobased circular economy.
The strategy will cover two phases:
Phase 1 – To strengthen our balance sheet (2020-2021): Reduce debt and maximise cash generation
Phase 2 – Invest for profit growth (2022 and beyond): Investing in new opportunities
Brand refresh: expressing who we are
The Thrive25 launch also included a brand refresh to reflect our intention of building a thriving world as a modern, dynamic company with a unified brand expression.
Special edition: Overview of 2020
Why is this necessary?
Our brand expression is more than just a Sappi logo. It’s a visual, verbal and behavioural reflection of how we see ourselves and how we want others to see us.
The design principles used to express the Sappi brand:
• The use of circular patterns,
objects and shapes is inspired
by the cyclical representation
of renewable resources and circular economies. It symbolises our advocacy for responsible, sustainable systems.
• Using colour by means of gradients, overlaps and transparency is a visual way of
symbolising partnerships and collaboration. We do this by pairing our colour pallet (hues of blue, purple and teal) and blending them together.
• How we present information
is a subtle indication of how
we choose to do business: with intention, making what we should and not just what we can. In our brand expression this is reflected by designing and communicating with clarity and purpose.
• The human factor in our brand expression is shown by using images of real people doing real things, capturing positive, authentic moments.
• The update of our Sappi logo, using a dot on the ‘i’ in Sappi instead of a square, also have purpose. It symbolises our commitment toward a more circular economy and represents the continuing evolution of our business.
So, the next time you look at Sappi brand communications material, see if you can identify the different elements that express who we are.
15.


Special edition: Overview of 2020
July continued...
Setting sustainability targets for a
thriving world
In our quest to unlock the power of trees to make every day more sustainable, we’ve made the United Nations Sustainable Development Goals (SDGs) an integral part of our business.
These goals define 17 global priorities that challenge us all to lean in and apply our creativity and innovation to contribute solutions to challenges – from climate change to poverty.
Globally, Sappi has identified seven priority SDGs where we believe
we can make the biggest impact. More than ever before, this focus is important. With only 10 years left to achieve the global goals, Sappi
is joining the call to step up for this Decade of Action and will, using
our global impact, work together
with governments, businesses and society to achieve ambitious action for sustainable development.
So, what is our focus and how are we contributing to create a thriving world?
The SDGs were a natural starting point to develop Sappi’s new sustainability framework and 2025 targets. They enabled us to establish focused, ambitious and measurable targets that will deliver on our new business strategy (to be launched in December 2020) and also address broader global concerns.
Focus teams across Sappi have worked intensively to evaluate the 17 SDG themes, and identified the seven goals that are now our global priority areas. From these goals, we selected the indicators by which we will measure our progress and set our 2025 targets.
In South Africa, we selected two additional priority SDGs, reflecting the socio-economic development priorities that will reinforce our unique and longstanding investments in people and local communities.
Typek reaches 10,000+ followers
In July, the Sappi Typek Team proudly reached over 5,000 followers on their vibrant Typek South Africa Facebook Page. This number has since doubled to 10,000.
Click here to watch the video that was posted to commemorate this milestone!
Discover our 2025 global targets by clicking here
16.


Special edition: Overview of 2020
July continued...
Sappi Biotech and how it
adds value to the business
We interviewed Executive VP Sappi Biotech, Louis Kruyshaar, earlier this year to find out more about this division’s value-adding role within the company.
What is Sappi Biotech’s purpose within the Sappi group and SSA?
Sappi’s purpose is to unlock the power of sustainable resources. The purpose of Biotech is to do so in markets adjacent to our traditional core business in order to broaden the longer-term growth opportunities of the company.
Biotech works with diverse regional and global teams to develop attractive new business opportunities in adjacent markets which have synergies with our raw materials, core competencies and assets.
What does ‘biotech’ refer to?
In the Sappi sense it refers to developing new products and solutions from our natural raw materials. Traditionally, Sappi’s focus was on cellulose as market pulp or to produce paper. Biotech’s focus is on the alternative use
of cellulose fibre and fibrils, extraction and beneficiation of hemicellulose sugars, opportunities in lignin and bio- energy.
How does this business segment complement Sappi’s overall strategy?
A core pillar of our strategy is growth. The Biotech portfolio offers a variety of ways to do this, whilst
also strengthening our core business. We have great opportunities today, due to changing
consumer preferences towards renewable and more
sustainable solutions.
Sappi Biotech is ideally positioned to offer products from a renewable
raw material to replace non-sustainable oil-
based incumbents. But our business is not just built on
sustainability; we also leverage opportunities where Sappi can establish competitive advantage aimed at delivering long term value and growth to our shareholders.
Another Sappi objective is to expand our pulping capacity. Biotech projects have synergies with pulping processes that offer a complimentary value driver to the overall Sappi strategy.
Since the start of Sappi Biotech, what progress has been made?
Biotech was established in 2016 to take on the commercialisation of our new business development portfolio under the R&D Exciter programme. Progress to date includes:
Bringing our lignin interests together in the Biotech segment and seeing this grow by approximately 35%. Today, this includes sales to more than 130 customers in over 40 countries.
From this base, the lignin team can focus on higher value products where we aim to launch several new grades to higher margin segments in the next phase.
The Valida micro- and nanocellulose fibrils technology was scaled up to pilot stage by R&D, and handed over
to manufacturing for commercial development. We have achieved our first sales of product, and are currently focusing on building market demand to motivate further scale-up. Valida application on paper products offer many opportunities, such as unique barrier technologies, with development in this area.
Our Symbio fibre-based composites underwent a phased development to increase the fibre content, which is a
key driver of the business case. Excellent collaboration between R&D and the commercial team resulted in success with Symbio currently specified by a major
17.


Special edition: Overview of 2020
July continued...
automotive company in their vehicles. Symbio offers many advantages including weight reduction which lower the carbon footprint of vehicles. A further highlight is the selection of Symbio for the Life Biocompo project with the FCA group.
We successfully commissioned the hemicellulose sugars extraction plant at Ngodwana Mill in collaboration with Valmet. The project not only serves as
proof of concept on industrial scale, but
the team also learnt different ways to optimise integration into specific mill situations for optimised economics. The key end use markets for hemicellulose sugars is xylose (for xylitol) and furfural, where Sappi
is working with route to market
partners to develop opportunities
to bring additional capacity to
global markets. In addition, we have
developed a parallel technology to
produce furfural very efficiently from our
sulphite liquors, where Sappi specifically has
interesting assets to leverage. This technology
is ready for scale-up. In summary we have a sucessful
and growing lignin business, with the balance of projects that
are all at an advanced stage of commercialisation. In the case of Symbio and Valida, the early commercial sales is a very encouraging sign of progress.
Our focus is now on illustrating the respective business cases to make larger scale investments.
The commercialisation of Biotech projects
will grow the business and strengthen our core, as there are various synergies in
the common aim of extracting more value
from trees.”
– Louis Kruyshaar, Executive Vice president Sappi Biotech
The global Biotech structure
Louis Kruyshaar (Executive Vice president Sappi Biotech)
Valida and Symbio
Matt Spence heads up Valida and Symbio. He is based in Maastricht, with Lixian Xu the General Manager for Valida and Iris Scharloo the General Manager for Symbio.
Lignin
Leander Jarvel has been promoted to head up the lignin business with Juergen Bendt taking retirement. Leander will relocate to Dusseldorf for this role. Jason Knock has taken over from Leander as GM Lignin in South Africa.
Biorefinery and R&D
Phil Goodier heads up the Biorefinery projects, based in the UK. Ed Marshall is the technology lead for Biotech UK; working closely with regional Sappi R&D Centres of Excellence on various Biotech opportunities.
18.


Special edition: Overview of 2020
July continued...
Valida celebrated for being
environmentally sustainable
Sappi Valida was recognised for its ‘green’ attributes and awarded the Ringier Technology Innovation Award at the 2020 Ringier Personal Care Technology Summit Forum and Exhibition held in Shanghai, China.
Over the past 16 years, competition for this award has become increasingly fierce. This year, there were nearly 200 product registrations. A review panel of eight top experts from the cosmetics industry in the USA, Germany, Japan and China judged the entries. In addition, the committee opened an online voting channel which received more than 20,000 public review votes.
In the words of the review panel: “Valida, being a natural and biodegradable material that contributes to green
and environmentally friendly formulation developments, deserves special attention”.
The Asia-Pacific region is the growth engine of the global beauty and personal care market, and China is the main hub – with a compound annual growth rate of 10% over the past five years. Sappi, being a trading partner in this region, and Valida receiving this coveted award in China, adds to the product’s stature in this market.
Finalists receiving their awards at the Ringier Technology Summit.
Within the growing cosmetics industry, Valida is well positioned to contribute to Sappi’s purpose of unlocking the power of renewable resources to benefit people and planet.
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Special edition: Overview of 2020
July continued...
Product development to ensure
newsprint machine’s longevity
The downward trend in newsprint demand over the last decade or so is well documented. The trend is mostly triggered by irrevocable changes in technology and subsequent consumer preferences. “Regrettably, the Ngodwana newsprint machine hasn’t been spared from
this trend, and the Covid-19 lockdown almost pushed the newsprint order book over the cliff,” reports Senior Engineer at the Technology Centre, David Kgongwane.
David Kgongwane.
On the positive side, there is an overwhelming anecdotal evidence of increased demand for contact and non-contact food packaging and shopping bags in South Africa. Changes in regulation, and the need for sustainability and a reduction in carbon footprint has prompted retailers to move more towards renewable paper packaging.
The Technology Centre, Ngodwana Mill and our Marketing team put a proposal forward to explore entering the food packaging market. The grade is traditionally produced from unbleached softwood (UBSW) and waste fibres. However, due to waste pulp constraints at the mill,
the Tech Centre formulated a blend of UBSW and groundwood that would meet customer requirements. The Tech Centre further established the process chemistry that would ensure smooth runnability and sheet quality for optimal conversion at the customer. Sales and marketing have branded the
new grade PrimePak Unbleached (PPU). The machine produced a range of grammages, 50, 60, 70, 80, and 90g/m2.
Several machine trials were run with a myriad of teething chemistry problems. The mill and the Tech Centre moved swiftly to address these problems and ultimately succeeded during the most recent production from 16 November
to date. The next focus will be on reducing the cost of production.
This project signifies R&D’s relentless support of diversifying Sappi’s product portfolio with a high margin product.
20.
Converted PPU paper.
50g/m 2 PPU jumbo roll on winder back stand.


August
Our first COVID-19 related death reported
On 06 August, we were sad to report that the first Sappi employee, Bhekani Ndimande from Saiccor Mill, succumbed to COVID-19 due to complications related to this disease, whilst in hospital.
Our heartfelt sympathy and prayers are with these families.
These deaths are a stark reminder that COVID-19 remains a serious threat to people’s health, wellbeing and lives.
HR recruitment policy ensures fairness and transparency
Our Human Resources department developed an HR Recruitment Policy process infographic, detailing the 12 steps that are followed when recruiting staff.
Special edition: Overview of 2020
A second employee, Mduduzi Stephen Lubisi from Ngodwana Mill, passed away in hospital in September after sudden illness. The cause of death was COVID-19 related.
On 27 November a third employee, Derek Moonsamy from Stanger Mill, also passed away from COVID-19, after spending two weeks in ICU.
Unfortunately, on 07 December, Ravi Pillay from Stanger Mill became the fourth employee who lost his life due to COVID-19.
Sappi’s COVID-19 infections low in comparison to other companies:
Due to quick and diligent action to put protocols and measures in place to protect our workforce, the COVID-19 infection rate in Sappi Southern Africa turned out to be ten times lower than predicted.
“At Sappi our success is ultimately underpinned by our employees.
We work hard to ensure that our recruitment process is fair and transparent; based on merit and a set list of criteria in line with equal employment opportunity guidelines and legislation,” explained Group Head Human Resources Director Fergus Marupen.
Do you ever get asked about Sappi’s Recruitment Policy? Maybe you want to know if you can apply for another job within Sappi? If you know how our recruitment process works, you can help other people become part of our Sappi family!
If you have not yet had time to study this process, click here to access the infographic. There are 12 steps in the process. Should you wish to read the entire policy document, or get more details, go online to our HR portal and click the appropriate link under ‘Policies’.
HR policy communications
Recruitment Policy
For more information visit Sappi Net. Go online to our HR portal and have a look under Policies.
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Special edition: Overview of 2020
August continued...
Vulindlela shows Sappi’s
purpose in action
After months of shutdown due to the nationwide lockdown, Project Vulindlela – the Dissolving Pulp (DP) capacity expansion at Saiccor Mill – resumed.
Construction work is back in full swing.
“The construction phase, which will conclude towards the end of 2021, will create employment opportunities for about 2,000 people; with 1,670 employees from local communities surrounding the mill already having benefited through the Vulindlela on- boarding facility,” says Saiccor Project Director, Wayne Weston.
Vulindlela, which is 88% complete and
expected to produce the first pulp in the second quarter of FY2021, is a prime example of how
Sappi is executing its purpose for the benefit of a thriving world.”
– Mohamed Mansoor, Project owner
This project is an important venture to help realise our strategic goals
of strengthening the balance sheet (phase one) and investing for profit growth (phase two). “It allows us
to satisfy the growing demand from customers and gives us the capacity to develop other growing markets,” says CEO of Sappi Southern Africa,
Alex Thiel.
Project Owner Mohamed Mansoor (Executive VP of Sappi Trading) further explains, “Vulindlela is an ambitious plan to increase Saiccor’s production by approximately
14%, whilst reducing the pulp mill’s environmental impact and contributing to the local economy in the form of employment opportunities, skills development and foreign exchange earnings.”
Facts and figures
• Milestones achieved: All major equipment has been installed. The modularisation method (construction in separate segments) used to install the pipe bridges, is also viewed as an engineering feat for SSA.
• Current production benefits:
Pulp machine 4 screening plant has reduced pulp silica levels. Bleach 3 and pulp machine 4 are able to operate at higher rates if pulp is available.
In fact, the province of KwaZulu-Natal is expected to earn an additional ZAR1 billion a year as a direct benefit to the economy.
Supporting sustainability
Our Thrive25 strategy places an enhanced focus on building a sustainable busines. To this end, Vulindlela is securing Saiccor and Sappi’s future by improving global cost competitiveness and supporting our sustainability objectives in line with several of the United Nation’s Sustainability Development Goals.
Benefiting people and communities
The project’s benefit to people and communities in the form of employment and skills training is also notable.
• SMME spend: ZAR16.4 million
• Skills upliftment training:
To date, 357 community members have been trained at the Saiccor Skills Centre; 212 have been appointed in various projects.
• Safety: Over three million Lost Time Injury Free (LTIF) manhours worked.
22.


August continued...
Project Vulindlela adds momentum
to our sustainability goals
As part of our Thrive25 strategy and drive towards greater sustainability, Sappi supports the United Nation’s 17 Sustainable Development Goals (SDGs). These goals are a universal call to action for collaboration among all sectors of society to address the social and economic developmental issues experienced on a global scale.
Special edition: Overview of 2020
“Sappi shares these sentiments,” • says General Manager Sustainability, Sappi Dissolving Pulp, Krelyne
Andrew. “The SDGs are a call to
end poverty, protect the planet, and ensure that all people enjoy peace
and prosperity. It speaks to the fact
that we are all connected, and that we grow and progress through the growth
and progression of others. •
Krelyne points out that Project Vulindlela is a good example
of Sappi’s intensified focus on sustainability as part of our strategy.
Vulindlela ambitiously reduces Saiccor Mill’s environmental footprint and enables job creation, whilst supporting product demand for our Verve product’s key customer base. “Thus, this project makes a significant contribution to Sappi’s key material issues and consequently prioritises the UN’s SDGs in several ways.”
Vulindlela will fulfil the following Sustainable Development Goals:
• SDG 6 is aimed at ensuring availability and sustainable management of water for all. How: As one of the benefits of Vulindlela, water efficiency is set to improve by 17%.
SDG 7 is a call for companies and society to step up efforts in renewable energy use and energy efficiency.
How: Through the realisation of Vulindlela, renewable energy use will increase by 20%, and energy efficiency by 10%.
SDG 8 – described as ‘decent
work and economic growth’ – is an important priority goal for South Africa.
How: The peak of Vulindlela’s construction phase employed between 2,500 and 2,800 contractors, thus creating employment opportunities and sustaining existing contractors’ businesses. Dissolving Pulp (DP) production will increase from 780,000 to 890,000 tons per year, thus creating further permanent employment opportunities. In addition, Vulindlela will add a further ZAR1 billion per annum in direct benefit to the KZN economy.
is Forest Stewardship Council TM (FSC) CoC certified.
• Global warming is causing drastic effects across the world. SDG 13 is a call to take urgent action to combat climate change and its impacts.
How: Project Vulindlela will reduce coal consumption by more than 130,000 tons per year, resulting in a 50% reduction
in carbon emissions and hence makes an important contribution to SDG 13, as well as Sappi’s own decarbonisation journey.
Equally important, is that this project helps Verve’s customer base to strategically reduce their upstream GHG emissions. There is also an added benefit to reducing fossil fuel consumption. This impact area is a focal point for the textile value chain. Targeted reductions will create shared value with Verve’s customers.
• The project will also make a positive contribution to SDG 12, which drives responsible production and consumption patterns.
How: Waste to landfill will be reduced by 50%, furthering
Sappi’s circular economy journey. Saiccor will also continue to use a sustainable source of wood fibre that
23.


Special edition: Overview of 2020
August continued...
New appointments to help grow the business
Duane Roothman, currently the
General Manager KZN Forestry,
has been appointed Vice
President Sappi Forests, where
he and his team will focus on
increasing Sappi Southern Africa’s
timber self-sufficiency. “I would like to
make sure that the inherent energy and innovative thinking deeply embedded in our forestry business gets elevated and fully integrated into our OneSappi approach going forward. I truly believe that sustainable forestry-based products have the ability to change the future.”
Mark Barnardo, former Senior
Area Manager, Forestry South in
KZN, has been appointed new
General Manager KZN Forests.
“My purpose is to continue to
serve the business. I’m humbled
by the opportunity to contribute to
the long term sustainability of Sappi – this includes stabilising and balancing stakeholder needs versus business needs to assure we are a trusted and preferred business partner.”
Sappi Learning launched Lean & Me
A new supervisor programme focused on improving relationships between supervisors and their team through improved visible leadership, coaching and better safety practices.
“We blame each other”
Limited visible leadership. People ‘firefight’ and blame each other.
September
“We need supervisors”
Leaders apply rules and consequences. Shortcuts are taken if leaders are not there.
“All of us contribute”
Leaders are visible
and employees do the right thing because they believe in it.
“We need each other”
Employees look out for each other. Leaders and employees make decisions together.
Heading up Sales and Marketing
24.
Graeme Wild, has been appointed as VP Sales and Marketing: Sappi Southern Africa. “I’m looking forward to understanding more about our business, getting to know our customers
better and most importantly, the opportunity to work with the exciting and dynamic sales and marketing team.”


September continued...
As we entered the last quartile of a challenging year, it became clear that the ‘can-do’ attitude and positive employee spirit that makes us so resilient as a company, are still intact.
Caring for our planet and our heritage
Our Arbor Week activities highlighted the highly valuable but endangered Pepperbark (Warburgia salutaris) tree, known for its medicinal properties.
As responsible land custodians, Sappi takes its commitment to the conservation of biodiversity very seriously. This commitment was reinforced by our Threatened and Endangered Species Stewardship Programme, of which the Warburgia salutaris project is the flagship.
Bev Sukhdeo (front, second left – General Manager, Saiccor Mill), a team of HODs and a couple of employees handing out Spekboom plants to employees in celebration of Arbor Week and Heritage Day.
In the lead-up to Arbor Week, Sappi, in conjunction
with the SANPARKS Skukuza Nursery, made 2,000 Pepperbark saplings available to the Endangered Wildlife Trust – read more about it here.
At some of our sites, Arbor Week activities coincided with Heritage Day celebrations, where Sappi staff had fun dressing up and getting to know the different South African cultures more intimately.
Christo Willemse (front left – General Manager, Tugela Mill) and some fellow colleagues dressed up in traditional attire, planting South Africa’s 2020 tree of the year, the Cape Ash.
Special edition: Overview of 2020
GBS employees showing off their diverse cultural attires in celebration of Heritage Day 2020.
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Special edition: Overview of 2020
October
Check out our website refresh
Are you also impressed with our Sappi website’s new look and feel? Check it out at www.sappi.com to see how our Thrive25 strategy and expression have been incorporated into the website to align with Sappi’s brand position as a modern, collaborative, purposeful and solutions-driven company.
You’ll notice a redesign of our homepage and user interface, as well as new ‘innovation’ and ‘sustainability’ sections in story-telling style.
Some interesting articles to read:
•
•
•
•
The wood-boring Cossid Moth: finding natural solutions to reduce infestation – www.sappi.com/on-the-scent-of-natural-solutions
The ‘black gold’ at our operations: www.sappi.com/in-the-black Enhancing print power with the high-tech cloud-based OctoBoost:
www.sappi.com/enhancing-print-power-productivity-and-profits
How we are making every drop count: www.sappi.com/making-every-drop-count
2
2
6
6
.
.
https://www.sappi.com/


October continued... Dancing for joy!
It’s a real treat to watch Sappi Southern Africa’s Jerusalema Dance Challenge videos and see the creativity and joy with which participating teams across the region moved in rhythm to Master KG and Nomcebo Zikode’s popular dance song.
Ngodwana Mill was the proud winner of this fun event, with Sappi Forests Lothair in second place and HR and Legal department at Head Office in third position.
New conveyer system voted one of SA’s
most exciting structures
Sappi Saiccor’s new conveyer system has been voted as one of the 11 ‘coolest’ new structures in South Africa. The Southern African Institute of Steel Construction (SAISC) awarded its Steel Awards 2020 to some of the most exciting projects completed in the past year throughout the country.
The judges praised the design’s unique four-conveyor, double-decker, walk-
in type gallery, with a gantry bridge spanning 45 metres at a height of 24 metres over the existing sulphur plant at Saiccor Mill.
The conveyer system at Saiccor Mill awarded as one of SA’s exciting new structures.
Click here to read more.
Special edition: Overview of 2020
Naresh Naidoo (General Manager, Ngodwana Mill) victoriously holding the mill’s winning Jerusalema Dance Challenge trophy.
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Special edition: Overview of 2020
November
Sappi Safety Awards
Our 2020 safety heroes set a prime example
A safe working environment is also a more productive one that contributes to a culture of caring, being responsible and taking ownership for our own wellbeing and that of others.
In the past year Sappi focused on ‘valuing life’ as a safety motto. Many of our employees took this pledge to heart, and at the recent 2020 Sappi Safety Awards we honoured those most dedicated to safety among us.
Congratulations to each of our winners! There is much to learn from their approaches to safety.
In the morning when I come to work, I first stop and think,
before I talk to the employees about safety. And I give myself enough time when I talk to
them, making sure that we only focus on the important issues
and that everyone understands and know exactly what is expected of
them.” Kwenzokhule Dlamini (Riblore, KZN Midlands)
Mpumelelo Mthembu
– awarded
the Safety conscious employee of the year award.
“It’s about showing that you care, and listening to what people
have to say about safety, then taking their feedback and seeing what can be improved, for the
individual, the department and the company’s sake.” Kumaran
IPSS – awarded the Safety conscious service provider of the year award.
“Safety should be part of your approach to life, not just to work and what you do at home. It is an attitude that you should take with you wherever you go.” Berdine Coetzee (Technology Centre)
28.
Govender (Saiccor Mill)
Wade Szabo (middle) – awarded the BBS Observer of the year award.


Special edition: Overview of 2020
November continued...
“We work in a beautiful building, but we still need to make
sure that the people coming here know how to conduct themselves to be safe. Anything
is a hazard. Someone could slip and fall and that can lead to serious injury. I want to make
sure that nothing is overlooked.”
Brenda Khumalo (RHO)
David Manqele (middle) – Awarded the Safety conscious employee of the year award.
“Our safety goals are very achievable and we are on track
to reach these goals when we continue to interact with one another, take care and look out
for one another.” Neil Dobeyn (KZN Midlands)
David Manqele (middle) – Awarded the Safety conscious employee of the year award.
“It’s not always easy – checking everything so
see what is unsafe,
writing it down,
reporting it to the supervisor and making
sure it is being fixed. But the effort is worth it and I’m so proud of this award.” Jerome Ngidi (Tugela Mill)
Forests Highveld – Safest Forest Operation – 5 year average.
“Part of our safety success is the housekeeping rules – everything in its place; as well as the daily safety talks. Everyone knows what is expected of them and they are committed to following the rules.” Henry Stamps (GM Sheltam Rail)
Norwell Engineering – awarded the Safety conscious service provider of the year award.
Stanger Mill contractors – awarded the Service providers and operations award with three million LTI free manhours.
WSB Transport – awarded the Safety conscious service provider of the year award.
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Special edition: Overview of 2020
November continued...
Sappi Safety Awards continued
Our 2020 Safety Award winners
Safety champion of the year:
Ellenore Melrose (RHO Johannesburg) who has worked tirelessly everyday
throughout this challenging year, consulting with health
practitioners to ensure that Sappi has the right protocols
and safety measures in place to prevent and manage COVID-19 infections effectively.
It was very much a team effort. Everyone in Sappi has played
an important role in managing COVID-19 and keeping the workforce safe and healthy. ”
– Ellenore Melrose (RHO)
We have a collective
responsibility to
keeping ourselves
and others safe. Each
of our safety champions clearly demonstrated an approach to safety that says, “I value and respect life in all my choices and actions”. Let’s all follow their lead.”
– Alex Thiel (CEO Sappi Southern Africa)
Safety representative of the year award
Mill award – Jerome Ngidi (Tugela Mill)
Forest award – Kwenzokhule Dlamini (Riblore KZN Midlands)
Office award – Brenda Khumalo (RHO Johannesburg)
Safety conscious employee of the year award
Mill award – Mpumelelo Mthembu (Tugela Mill) Forest award – David Manqele (Riblore in the KZN Midlands)
Office award – Berdine Coetzee (Technology Centre Pretoria)
Safety conscious service provider of the year award
Mill award – Norwell Engineering Forest award – WSB Transport Office award – IPSS
Safety conscious team leader award
Mill award – Kumaran Govender (Saiccor Mill) Forest award – Neil Dobeyn (KZN Midlands)
BBS observer of the year award
Mill award – Wade Szabo from Saiccor Mill
Safest service provider of the year award
Mill award – Sheltam
Forest award – Sibambane Forestry
Service providers and operations with three million LTI free manhours
1. Stanger Mill contractors
2. WSB Transport
3. Sappi Forests Zululand Operations 4. Project Vulindlela
Celebrating five million LTI free manhours
Sibambane Forestry
Safest operations over a five-year average
Mill – Stanger Mill with a LTIFR 0.21
Forestry – Mpumalanga Forestry in Highveld with and LTIFR 0.155
30.


November continued...
Hosting a high-level delegation
at Vulindlela site
Saiccor Mill hosted a delegation from the office of the outgoing MEC for Economic Development, Tourism and Environmental Affairs (EDTEA), Nomusa Dube-Ncube, as part of the KZN International Investment Conference. The MEC was accompanied by the Deputy Mayor of Ethekwini, Councillor Belinda Scott and TIKZN Chairperson, Ina Cronje.
CEO of Sappi Southern Africa, Alex Thiel, spoke about Sappi’s investments in economic growth and social development in the KZN province, after which the visitors were taken on a tour of the mill. They were particularly impressed with the Project Vulindlela construction site.
A new appointment to help grow the business
Jason Knock was appointed as General Manager: Lignin SSA, effective 01 November 2020. Jason has broad experience in the technical and commercial fields. Under his leadership, we look forward to delivering on our Thrive25 growth goals for the Lignin business.
Special edition: Overview of 2020
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Special edition: Overview of 2020
November continued...
Kraft Liner Board upgrade progressing well
The changing nature of technology necessitates upgrades to equipment from time to time to keep processes working as efficiently as possible. While Ngodwana Mill’s PM1 has served the company well since
the mid-1980s, the Kraft Liner Board (KLB) machinery is due for an upgrade to keep production globally competitive.
The phased approach has seen a change in configuration of the Raw Stock Refiner System from parallel to series refining. This is to allow the use of higher kappa pulp from 2 Digester. The cost of this phase is ZAR58 million and all work is expected to be complete and handed over by the end of September 2020.
Phase 2 is focused primarily on quality improvements namely.
Although the project was approved by the Sappi SA Project Preview Committee (PPC) in December 2019, board approval has been postponed until the 2021 financial year.
Supporting
32.
community
businesses
New Venture Creation was launched at our Skills Centres – a new programme aimed
at supporting community-run start-up businesses for 18 months through formal training, as well as technical support. Three new ventures are currently running: sewing, carpentry and basic maintenance.
An example of a two-piece overall as part of the sewing skills that being acquired through the New Venture Creation initiative.


November continued...
Our resilience as a business and the fundamentals of our strategy were tried and tested in 2020 as the COVID-19’s impact ravaged across global economies and markets. But given the challenging circumstances, we have shown remarkable nimbleness and an ability to adapt and change.
Q4 and full-year results:
Positive about future outlook as we reflect on challenges and learnings
During Sappi’s first global online year-end staff briefing on 16 November 2020, Steve Binnie and our regional CEOs reflected on the past financial year by sharing the challenges experienced, progress made and the focus areas going forward.
Special edition: Overview of 2020
“It has been a tough year for us all, but there is clear evidence of market recovery. I’m confident about the year ahead,” said Group CEO Steve Binnie. “Our business is in a strong position and I want to thank everyone for their contribution. As a leadership team we are looking forward to what we are going to achieve in the year ahead.”
Locally, CEO of Sappi Southern Africa, Alex Thiel, said that SSA’s performance was significantly impacted by lower dissolving pulp volumes and prices, as well as weak domestic paper markets. COVID-19’s impact is also still evident in the newsprint and uncoated woodfree volumes. However, the packaging and specialities segment managed to beat the budgeted EBITDA margin.
The region’s strong focus on cost curtailment led to a decline in variable costs and cash fixed costs.
Looking ahead
Going forward, SSA’s focus is on growing sales revenue, improving
operational efficiencies increasing earnings and conserving cash.
Alex added that there are several positive aspects to build upon as we go into the new year.
“We have proven that we are well positioned to deal with future challenges – by supporting a circular economy, creating environmental awareness, focusing on climate change etc and more. Our business has become extremely innovative, and we have resourceful people who act with speed, and who can deal with any situation.”
Key learnings
Commenting on the key learnings from the COVID-pandemic, Alex said, “We have certainly learnt that we can keep our people safe. We have been agile in modifying our shift systems and operating procedures. This has resulted in low rates of infection. The current times also create opportunities – placing greater awareness in terms of the environment, sustainability
and a circular economy. As long as we
are nimble
and continue to grasp those opportunities, we will thrive.”
Thank you to all our employees for
great dedication during a challenging year. Your efforts are deeply appreciated. Have a good rest this festive season and I’m looking forward to joining
you in embracing our Thrive25 goals and new opportunities in 2021.”
– Alex Thiel, CEO Sappi Southern Africa
33.


Be practical and stay safe this festive season
Planning a well-deserved break? Apart from adhering to COVID-19 protocols (see the Employee guide), also make sure you follow some simple crime prevention guidelines:
Before you leave
• Make sure all the windows and doors are closed.
• Is your alarm systemin good working order?
• Inform family, neighbours or friends of your
intended destination, the time you expect to return
and the route you’ll be driving.
• Lock all tools such as axes, spades, picks, and
ladders away. Criminals can use them to gain access to your house.
On the road
• Plan your route beforehand.
• Take comfort breaks every two hours.
• Keep a safe following distance.
• Try not to drive late at night or in the early hours
of the morning.
• Don’t drive when you feel tired or sleepy.
• Be a defensive driver (anticipate that fellow
motorists won’t stick to the rules of the road and compensate accordingly).
When using public transport
• Ensure that you know the distance, direction and time it takes to get to your final destination.
• Be alert at all times. Keep valuable items out of sight.
• Use reputable private transport services.
• Be particularly alert at any transport interchanges.
When out and about
• Familiarise yourself with emergency measures, such as your nearest exit sign, fire extinguishers, and stairs in case of fire emergencies.
• Keep valuables (jewellery, phone, wallet) out of sight. • Where possible, avoid being alone.
• Deal only with authorised agents when you
exchange money.
• Only carry the amount of
money you’ll need and be alert
at ATM terminals.
• Don’t look like ‘prey’
– wandering about, appearing to be unaware of your surroundings.
Be alert and purposeful in all your actions.
Have a safe and restful festive season!
Thank you for great commitment to Sappi during this challenging year. Wishing you a safe, healthy and peaceful festive season!