Sappi Limited Announces $165 million Paper Machine Rebuild at its Somerset Mill in Skowhegan, Maine

Sappi Limited, a leading global producer and supplier of diversified woodfibre products, today announced the approval of a range of projects in Europe and the United States including the approval of a US$165 million capital project to expand Sappi North America’s manufacturing capabilities and flexibility to include a variety of consumer packaging products. This investment on Paper Machine No. 1 at its Somerset Mill in Skowhegan, Maine establishes a strong platform for growth in paper-based packaging while maintaining Sappi’s leadership position in the graphic paper market, increasing annual production capacity at this mill to almost one million tons per annum.

“This move complements our long term 2020Vision strategy, which seeks opportunities to substantially increase our group EBITDA,” said Steve Binnie, CEO of Sappi Limited. “By investing in our business to pursue growing areas of demand, we can remain profitable and competitive in the global marketplace.”

“Somerset’s existing world class infrastructure together with its talented workforce and access to high quality fiber makes the mill an excellent and obvious choice for this investment,” said Mark Gardner, President and CEO of Sappi North America.  “Increasing our flexibility and expanding the paper mill’s capability and capacity will ensure that we continue to make superior products at Somerset for years to come.”

The planned project at the Somerset Mill in Maine is slated to come online early in 2018.

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