Rayonier Advanced Materials Reiterates Commitment to Acquire Tembec

Commenting on the group’s results, Sappi Chief Executive Officer Steve Binnie said: “Despite continued challenging global macroeconomic conditions and weak paper markets I am pleased that the group delivered Adjusted EBITDA of US$203 million, which was ahead of expectations and substantially above last year.” Year-on-year profitability improved across all segments, supported by cost-savings, operational efficiency gains, higher dissolving pulp (DP) selling prices and sales volumes combined with improved packaging and speciality papers sales volumes.

A collaborative effort between Sappi, MaBe and Kegelmann Technik GmbH from Rodgau-Jügesheim has culminated in the development of a biobased alternative for an injection moulding birdfeed-adapter. This development used the expertise of all partners. MaBe a German based company focused on upcycling and sustainability, sells lanterns made from recycled soda bottles. With recent innovation and adapters, these lanterns could now be used for bird-feeding devices. Partnering with Kegelmann Technik GmbH from Rodgau-Jügesheim, experts in the field of material composite formulations, these adapters were produced efficiently from more sustainable material. Instead of regular plastic, a natural fibre composite material was proposed. Sappi Symbio provided that alternative being a highly resistant, biocomposite cellulose fibre derived from responsibly managed renewable forests. This partnership has reflected the need for developing mutually beneficial, value adding products that could be recycled. This places a shared responsibility to move toward a sustainable future and recognise it is work that cannot be done alone.

The fourth quarter was shaped in part by the annual maintenance shutdowns at our two mills, which proceeded smoothly and as planned. Consequently, all three of our major investment projects are now up and running. The underlying performance showed improvement compared with the corresponding quarter of the previous year, despite the upward trend in raw material costs. Demand for chemical softwood pulp remains relatively stable in our key markets, with many customers increasing volumes, especially in our niche segments. We continue our structured approach to gradually developing Rottneros in line with our niche strategy, prioritizing safety, sustainability, and profitability. Production and deliveries for the Group declined compared with the same quarter last year, mainly as a result of the annual maintenance shutdowns carried out at both mills. In 2023, Rottneros Mill scheduled its maintenance shutdown in September. Excluding temporary items, primarily related to the sale of emission allowances, our underlying EBIT rose by approximately 20 MSEK, despite the negative effect of higher wood costs and maintenance shutdowns on comparability. Fixed costs totaled 240 MSEK, compared with 220 MSEK in the same quarter last year.