Sappi: 45,000 tons of inventory damaged in KZN floods

Business

Some 45,000 tons of Sappi’s inventory (including 30,000 tons of dissolving pulp) were damaged due to the flooding in KwaZulu-Natal, while the company also suffered lost production of 23,000 tons.

The company expects insurance payouts of around $28 million (around R431 million), which means there will be no material impact on its profit for the year.

There has also not been any material damage to any of its plants.

The Tugela and Stanger mills are fully operational, while the Saiccor Mill will take a few days to ramp up to full capacity.

The company said its immediate focus is on reinstating logistical supply chains for raw materials and finished goods.

“Although the Port of Durban resumed operations, export deliveries could be impacted negatively for a few weeks due to damage to access roads, congestion and limited availability of vessel space,” said Sappi.

Damage to public infrastructure- including rail and road connections – will take time to restore, but alternatice transport arrangements have been made, said Sappi.

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