Sappi Reaffirms Commitment to Packaging as Lanaken Mill Transition Nears Completion

In the face of a persistent global economic downturn marked by depressed markets, geopolitical instability, and weak economic growth, Sappi has navigated challenging conditions, particularly in Europe. The company recently concluded the consultation process for the potential closure of Sappi Lanaken Mill, marking a strategic shift in response to market dynamics.

Initiated on October 10, 2023, the consultation process explored the possibility of closing the Lanaken Mill, with the production of paper ceasing in December 2023. As the closure progresses and is expected to be finalized in the second quarter of 2024, details regarding the fiscal impact are expected to be disclosed during the first-quarter financial results announcement that is scheduled for February 7, 2024.

Sappi Lanaken Mill is an integrated pulp and paper mill located in Belgium, which employed 581 workers with a production capacity of 165,000 tpa of pulp used to produce 530,000 tpa of coated woodfree paper which was mainly sold into the European print market.
| Credit: Sappi

Sappi's strategic focus now centers on reducing exposure to the graphic paper segment while actively expanding its presence in packaging, specialty papers, pulp, and biomaterials. The move aligns with the company's commitment to building a sustainably resilient organization. In a written statement, Sappi noted building a sustainably resilient organization “requires evaluating the future of all facets of the business based on market dynamics and the market segments Sappi believe will be strongest in the future.”

While continuing to serve the graphic paper market through competitive assets, Sappi has identified a primary focus on growing the packaging and specialties segment. This expansion encompasses flexible packaging, functional papers, self-adhesives (including glassine), labels, and more.

Sappi Lanaken Mill, an integrated pulp and paper facility located in Belgium, employed 581 workers and boasted a production capacity of 165,000 tpa of pulp, contributing to the production of 530,000 tpa of coated woodfree paper. While bidding farewell to paper production at Lanaken Mill, Sappi affirmed that the closure will not negatively impact customers stating, “The transfer of production to other Sappi facilities increasing capacity utilization has commenced and there will be no disruption to our customers.”