Sappi Europe announces price rise for all Coated & Uncoated paper grades in Europe by 7-10%

The second quarter was challenging with all-time low sales volumes and with currency-neutral net sales declining by 18% compared to the same period last year. The largest sales decline was in North America due to the continued inventory destocking resulting in production curtailments. This, in combination with historically high fiber costs in Europe led to a weak result. By all indications, the blastomycosis outbreak at the Escanaba mill is behind us. Following a three-week idling and deep cleaning of the facilities, operations were successfully resumed on the 8th of May. We continue to work closely with local, state and federal health experts as they complete their analysis of the testing and sample collection at the mill. Results will be made publicly available in due course. The negative financial impact of the outage and the deep clean was SEK 85 million in the quarter. From the 1st of April, our financial results are reported according to a regional structure. Business conditions differ vastly between Europe and North America, even if the current situation of high inventories and destocking applies to both regions. Region Europe’s profitability deterioration in the second quarter was primarily due to all-time-high fiber cost and soft volumes. Region North America on the other hand delivered a comparatively healthy margin, despite an operating rate of 50-60%, thanks to our cost-leadership and tight cost control.

Innovation Norway has allocated NOK 15 million in support of building a demonstration plant for the development of fiber composite production at Norske Skog Saugbrugs. This will accelerate the on-going development work to industrialize the production of a new type of biocomposite, which can be included in furniture, packaging and car interiors. Norske Skog Saugbrugs will develop sustainable solutions related to plastic raw materials, fiber blending, technology development and testing of biocomposites. "We want to contribute to reduced plastic consumption by creating new, green products with significantly reduced carbon footprint, and find good solutions to recycle significantly more plastic than today. The plant is crucial for accelerating the industrialization of new sustainable, bio-based products," says CEO Kjell-Arve Kure at Norske Skog Saugbrugs. Norske Skog Saugbrugs is now well under way with the development of finding solutions to problems related to plastic raw materials, fiber blending, technology development and testing of biocomposites. The demonstration facility will be a prerequisite in the further development work to succeed.

Sappi North America, Inc., a leading producer and supplier of diversified paper, packaging products and dissolving wood pulp, has announced it will showcase seven new and recently launched textures from its Arrio finished surface and Ultracast decorative laminate release paper lines during interzum 2023 in Cologne, Germany from May 9-12, 2023. Sappi will also display a decorative laminate texture six-pack and a “bio-lab” that will highlight materials such as bio-based leather alternatives whose aesthetics benefit from the use of Sappi release paper. The six-pack will include these new or recently launched textures: Matte Stipple: This all-over delicate granular design is inspired by plaster effects in the decorative coatings of walls and ceilings. Lunaris: With its elevated concrete look, Lunaris expresses the spirit of surface patterns eroded over time, celebrating the beauty of naturally created texture. Koa: Koa's curly, wavy pattern is arguably one of the most beautiful woodgrain textures in Sappi’s catalog. Kenwood CD (CD=cross direction) is a modern and sophisticated version of Sappi's popular Kenwood design, aimed at the medium-high-end door market. Cayenne: Cayenne is a natural, fresh and trendy wood texture inspired by a refined linear Italian walnut surface. Bond: Bond rounds up every elevated laminate collection with the warmth and coziness of a textile finish.