Johannesburg - Sappi announced on Thursday that it had sold its Enstra Mill recycled containerboard and kraft papers business in Springs to the Corruseal Group.
Sappi Southern Africa chief executive officer Alex Thiel said the sale was in line with Sappi’s strategy to reduce debt, strengthen its balance sheet and direct resources to high-growth opportunities. The value of the transaction was not disclosed.
He said Sappi had reviewed its business over the past four years and implemented a number of changes to turn the company around.
“These actions have delivered significant positive impacts with Sappi Southern Africa returning exceptional results during Sappi’s 2014 financial year and strong results during this financial year,” Thiel added.
Corruseal Group joint chief executives Mehul Mehta and Rajiv Mehta said: “The Enstra Mill fits perfectly with our strategy to backward integrate and grow our business... We are committed to remain a sustainable, innovative, service driven and world-class manufacturer of packaging.”
ANA