News | November 10, 2022

Sappi Announces $418M Paper Machine Rebuild At Its Somerset Mill In Skowhegan, Maine

BOSTON--(BUSINESS WIRE)--

Sappi North America, a leading global producer and supplier of diversified woodfibre products, today announced the approval of a $418 million capital project to convert Paper Machine No. 2 at its Somerset Mill in Skowhegan, Maine to increase its capacity and produce solid bleached sulfate board (SBS) products. The project will be funded from free cash flow.

“This move complements our long-term Thrive25 strategy, which focuses on growing our portfolio in packaging and specialty papers, pulp and biomaterials,” said Mike Haws, President and CEO of Sappi North America. “By investing in our business to pursue growing areas of demand, we can remain profitable and competitive in the global marketplace”

Demand for packaging and specialty papers in North America is particularly robust, especially since SBS is a more environmentally sustainable alternative to plastic packaging, and customers are actively seeking to increase their volumes with Sappi North America. SBS is used in premium packaging for cosmetics and perfume, health and beauty care, consumer electronics, confectionary, luxury drinks and more. Foodservice items such as plates, dishes and cups also use SBS as a sustainable alternative to plastic.

“Somerset’s existing world-class infrastructure and success in producing high quality SBS products, together with its talented workforce, make the mill an excellent and obvious choice for this investment,” said Haws. “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 2025.

About Sappi North America, Inc.
Sappi North America, Inc., headquartered in Boston, is a market leader in converting wood fiber into superior products that customers demand worldwide. Our four diversified businesses – high-quality Graphic Papers, Dissolving Pulp, Packaging, and Specialty Papers deliver premium products and services with consistent quality and reliability. Our high-quality Coated Printing Papers are used for premium magazines, catalogs, books, direct mail and high-end print advertising. We are a leading manufacturer of Dissolving Pulp, which is used in a wide range of products, including textile fibers and household goods. We deliver sustainable Packaging and Specialty Papers for luxury packaging and folding carton applications with our single-ply packaging brands and for the food and label industries with our specialty papers. We are one of the world's leading suppliers of Casting and Release Papers with lines for the automotive, fashion and engineered films industries.

Sappi North America is a subsidiary of Sappi Limited (JSE), a global company headquartered in Johannesburg, South Africa, with more than 12,000 employees and manufacturing operations on three continents in seven countries and customers in over 150 countries. www.sappi.com


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