Sappi pledges R10.8bn in ongoing investment in KwaZulu-Natal

Overall, companies pledged a total of R76bn in investments for the province, with Sappi’s substantial commitment being the second largest. 

As a company with operations deeply rooted in the province, Sappi recognises its role as a significant contributor to the economic and social fabric of KwaZulu-Natal. With three operational mills in Umkomaas, Stanger, and Mandeni, as well as 165,000 hectares of forest plantations, Sappi creates employment opportunities for thousands of people, both directly and indirectly. This pledge follows previous commitments made by Sappi, notably the R7.7bn Saiccor Mill upgrade and expansion project in 2018, among others in subsequent years. 

Additionally, Sappi is one of the largest users of the Durban Port, moving approximately 120 containers per day to export its dissolving pulp, primarily to India, Europe, China, and other  Asian countries. We continue to grow the forest sector value chain empowering local communities through our comprehensive Enterprise and Supplier Development initiatives, by supporting more than 4,000 timber growers through our Sappi Khulisa Enterprise Supplier programme. Another 102 SME suppliers in the region benefit from more than R250m spent on their development, in addition to having the opportunity to become suppliers, along with our many other suppliers in the province who support our operations through their products and services. 

Sappi’s Social Impact Programme extends beyond enterprise support to include education, skills development, and community initiatives. We recognise that a strong foundation in education and community well-being is essential for building a well-rounded, resilient business environment that enhances KwaZulu-Natal’s appeal as a sustainable destination for trade and investment. 

“We saw this as an ideal opportunity to pledge our support, demonstrating our confidence in the future prosperity of the province as a premier destination for investment. This conference also served as a vital networking platform to express our appreciation for the work done to date in addressing some of the logistical challenges we face,” said Alex Thiel. “While significant progress has been made, we were also able to discuss ongoing concerns, such as the delayed rebuilding of the South Coast Railway Line and the availability of railway equipment, which we believe may hinder companies operating in KZN from reaching their full potential,” he said.