Sappi expands its speciality business into Europe

Sappi, a global leader in the production of dissolving wood pulp, speciality, and packaging papers, recently announced its acquisition of the speciality paper business of Cham Paper Group Holding for approximately $149 million. This strategic move signals Sappi's continued commitment to transforming its business model towards higher growth and higher margin ventures. The acquisition includes CPG's Carmignano and Condino Mills in Italy, as well as its digital imaging business located in Cham, Switzerland. The CEO of Sappi, Steve Binnie, joined CNBC Africa to discuss the details of this major development. During the interview, Binnie expressed his enthusiasm for the acquisition, highlighting Sappi's ongoing transformation away from traditional graphic paper towards more lucrative speciality packaging businesses. He emphasized that this move is in alignment with Sappi's strategic goals to strengthen its speciality business and tap into new opportunities for growth and expansion. Binnie mentioned that the acquisition will enable Sappi to complement its existing speciality business, which has been steadily growing over the past few years. When asked about the potential risks associated with the deal, Binnie acknowledged the challenges that come with any acquisition, such as the need to navigate a transition period, integrate cultures, and align employees. However, he expressed confidence in Sappi's ability to manage these risks effectively and ensure a successful integration process. Binnie also highlighted the promising prospects in the market for the speciality paper business, underscoring Sappi's optimism about the potential for growth and profitability in this segment. In terms of future acquisitions, Binnie revealed that Sappi is currently focused on expanding its dissolving pulp business and pursuing internal projects to fuel growth in this area. While there are no specific acquisition targets in sight at the moment, Binnie mentioned that Sappi remains open to exploring external opportunities that align with its strategic objectives in the dissolving pulp sector. Overall, Sappi's acquisition of Cham Paper Group's speciality paper business represents a significant milestone in the company's evolution towards a more diversified and resilient business model. By expanding its presence in Europe and bolstering its speciality offerings, Sappi is positioning itself for continued success in the global paper and packaging industry.