Sappi Limited, led by South African business executive Nkululeko Sowazi, has agreed to sell land and assets in Lanaken, Belgium, to UTB Waalwijk B.V. (UTB), a privately held Dutch company specializing in industrial property conversions, for €50 million ($54.6 million).
The sale comes after Sappi announced in November 2023 that it will cut graphic paper manufacturing capacity in Europe, including starting a consultation process to close the Sappi Lanaken factory. The consultation process was successfully completed, and production at the mill halted at the end of December 2023.
Following the mill closure, Sappi announced that it had reached an agreement to maximize the value of its Belgian assets. According to the corporation, UTB’s expertise in industrial property conversions makes it an excellent fit for this project.
The agreement states that UTB will pay €50 million ($54.6 million) for all of Sappi Lanaken N.V.’s shares and associated assets. Of this total, €40 million ($43.7 million) will be paid in cash. The acquisition is unconditional and is scheduled to close in October 2024.
Sappi Limited, formed in 1936 as South African Pulp and Paper Industries Limited, has grown into a key player in the global pulp and paper sector.Nkululeko Sowazi was appointed Chairman in November 2023, ushering in a new era for the corporation as it navigates a challenging market climate.
Sowazi, a famous South African businessman, has extensive experience in a variety of industries, including mining, real estate, technology, infrastructure, and banking. His leadership roles in organizations such as Bud Chemicals & Minerals, Synchem, Inc., and Tiso Investment Holdings Pty Ltd., as well as his contributions to economic growth efforts, illustrate his significant experience and leadership talents.
Since taking over for Nigel Rudd on February 8, 2024, Sowazi has prioritized boosting Sappi’s packaging and specialty paper capabilities while minimizing exposure to weakening graphic paper markets.
The sale of the Sappi Lanaken mill is the first of its kind under Sowazi’s leadership, demonstrating his commitment to directing the firm toward a successful turnaround while aligning Sappi’s ambitions with the changing global market situation.
