Sappi profits boosted by global paper demand in 2022
- Sappi announced record earnings as global demand for paper increases
- There was a drop in demand over the last two years since the onset of the Covid-19 pandemic.
- The business has suffered in South Africa due to rolling power cuts, riots and the recent floods in KZN
South African pulp and paper company Sappi announced record earnings in the second quarter of 2022 amid a global demand in paper supplies.
Wood pulp is not only used in the production of paper, but also to manufacturer material for the clothing and textile industry.
The majority of Sappi's output is exported to China, but there is a growing market in South Africa for the use of dissolving wood pulp.
Sappi CEO, Steve Binnie says the company has recovered significantly since the economic lows brought on by the Covid-19 pandemic.
As economies start opening up and businesses start advertising again, we've seen quite a remarkable bounce in demand.Steve Binnie, CEO of Sappi
It's a very exciting prospect, and demand is particularly strong at the moment with the bounce-back post Covid. We're very optimistic about the prospect of dissolving wood pulp.Steve Binnie, CEO of Sappi
Despite the positive results, it's been a difficult past two years for the company in South Africa, having to contend with several issues including rolling power cuts, the recent floods in KwaZulu-Natal and the riots in Gauteng and KZN last year.
You combine all of that with ongoing problems at the Durban port which are very frustrating, which has delayed our deliveries to our customers.Steve Binnie, CEO of Sappi
Sappi has four mills in South Africa, three of them in KZN. When the floods occurred, we had to stop production. We lost inventory at the warehouse.Steve Binnie, CEO of Sappi
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