Visit Program
10h00 Arrive Saiccor, Welcome
10h10 Presentation
12h00 Plant Tour
13h30 Lunch
14h00 Departure
Sappi Group : March 2011
Sappi Fine Paper
Sappi Southern Africa
Sappi Fine Paper
Europe
Paper and Paper Packaging
 Alfeld, Biberist, Ehingen, Gratkorn,
Kirkniemi, Lanaken, Maastricht,
Nijmegen, Stockstadt
Sappi Fine Paper
North America
 Cloquet, Somerset, Westbrook
Kraft
 Ngodwana, Tugela, Cape Kraft &
Coater, ReFibre (Waste)
Sappi Fine Paper
South Africa
 Enstra, Stanger, Adamas
Forests
 Plantations in RSA and Swaziland
(pulpwood and sawlogs)
Chemical Cellulose
 Saiccor
Sappi Manufacturing (Pty) Ltd
3 | Analyst Visit | Saiccor | 01 March 2011
Sappi Trading
Sales in over 100 countries
13 Sales offices on 6 continents
Jiangxi Chenming
(China JV)
34% ownership
Saiccor’s Strategy
Mission Statement
To be the global leader in innovative
and sustainable solutions inspired
by the chemistry of trees.
4 | Analyst Visit | Saiccor | 01 March 2011
Saiccor’s History

Saiccor registered 12 September 1951
( Courtaulds, Snia Viscosa, IDC )

First Italians arrived 23 April 1954

First DP produced 01 December 1955

Sappi bought Saiccor in 1988

Mkomanzi expansion in 1995

LignoTech commissioned 1998

LignoTech expansion 2003 and 2008
 Amakhulu
5 | Analyst Visit | Saiccor | 01 March 2011
Launched 2006, complete 2008
Saiccor’s Business
Chemical Cellulose

Sappi Saiccor is the world’s largest manufacturer of chemical
cellulose (dissolving pulp)

Capacity to produce 800 000 tons per annum / 2200 tons per day
of commodity and high grade hardwood chemical cellulose

Chemical cellulose is produced for further processing by the
textile, food, chemical and pharmaceutical industries

Saiccor DOES NOT manufacture woodpulp for the paper and
packaging industry
6 | Analyst Visit | Saiccor | 01 March 2011
Saiccor’s Business
Wood Supply
Wood supply
90-95% Eucalyptus (5-10% Acacia)
E. grandis, E. nitens, E. dunnii, E. smithii, E macarthuri
Grandis hybrids
A. mearnsi
Source
Northern KwaZulu Natal and Midlands
8,000 tons wood processed per day
7 | Analyst Visit | Saiccor | 01 March 2011
Timber Growth Rates
Fast growth rates makes S. Africa a source of low-cost pulp
Hardwood Pulp - Avg. Tree Age at Harvesting
Softwood Pulp - Avg. Tree Age at Harvesting
n/a
Source: Forestry South Africa
8 | Analyst Visit | Saiccor | 01 March 2011
Saiccor’s Business
Basic Wood Chemical Structure
Paper Pulp

Want pulp fibres

Physical properties are important

Lignin undesirable
Chemical Cellulose
extractives
5%
cellulose
45%

Want cellulose

Chemical Properties are important

Lignin, hemi-cellulose,
extractives, undesirable
9 | Analyst Visit | Saiccor | 01 March 2011
Wood Composition
lignin
20%
hemicellulose
30%
Saiccor’s Business
Saiccor Process Overview
WOODYARD
COOKING
Raw pulp is
screened and
washed
BLEACHING
Logs are chipped
FINISHING
Pulp is cut into sheets to
form bales or into rolls
10 | Analyst Visit | Saiccor | 01 March 2011
Chips are
cooked in
digesters
Bleached pulp is formed
into sheets and dried
Raw pulp is
bleached
Saiccor’s Business
Saiccor Process Layout
Woodyard
PULP PREP
Liquor plant
& SO2
recovery
MKOMANZI
Ca
digesters
Washing &
screening
MgO 1
recovery
MgO 1
digesters
Washing &
screening
AMAKHULU
MgO 2
recovery
MgO 2
digesters
Washing &
screening
PULP FINISHING
Bleaching 2
Bleaching 3
Bleaching 4
Pulp machine 3
Pulp machine 4
Pulp machine 5
Bales
11 | Analyst Visit | Saiccor | 01 March 2011
Bales & Rolls
Bales
What is Chemical Cellulose
Dissolving Wood Pulp
5m tons
Including Sappi
Chemical Cellulose
4 m tons
Cotton Linter Pulp
Mostly China
1 m tons
What do our customers make?
VSF
Lyocell
MCC
Acetate
Others
CMC/ethers
Cellophane
Filament
Tyre cord
Nitrocellulose
Plastics
Sponges
Where is Chemical Cellulose ultimately used?
• It is used to …..
Wear
Beautify
Wrap
Eat & Drink
R&R
Wash & Wipe
Communicate
Heal
Filter
Mend
hemical
ellulose
Global Chemical Cellulose Demand - 2010
CMC/Ethers
9%
Nitro
3%
Others
6%
VSF
59%
Filament
6%
Acetate
13%
MCC
2%
Lyocell
2%
Total = 5m tons
Sappi = 0.8m tons = 15%
Viscose Staple Fibre Segment
Applications:
Textiles
Nonwovens
Size:
2.8m tons
Forecast Growth:
5% p.a.
16 | Analyst Visit | Saiccor | 01 March 2011
Lyocell Segment
Applications:
Textiles
Nonwovens
Size:
0.12m tons
Forecast Growth:
5% p.a.
17 | Analyst Visit | Saiccor | 01 March 2011
Acetate Segment
Applications:
Filter Tow
Filament
Plastics
Size:
0.6m tons
Forecast Growth:
2-3% p.a.
18 | Analyst Visit | Saiccor | 01 March 2011
MCC Segment
Applications:
Colloidals
Exipients
Size:
0.11m tons
Forecast Growth:
4% p.a.
19 | Analyst Visit | Saiccor | 01 March 2011
Other Segments
Applications:
Ethers
Filament
Nitro
Cellophane
Plastics
Others
Size:
1.4m tons
Forecast Growth:
1-2% p.a.
20 | Analyst Visit | Saiccor | 01 March 2011
Customer Locations
Cellulose Gap
Forecast
Source : Lenzing
“Cellulose Gap”
Source : Lenzing
Global Chemical Cellulose Capacity 2010
Others
8%
Bahia
9%
Borregaard
3%
P.T. Toba
3%
Saiccor
15%
Nippon
2%
Tembec incl Tartas
5%
Buckeye
5%
Domsjo
4%
Rayonier
9%
Other CLP to China
2%
Neucell
4%
Integrated China CLP
16%
5.2 million tons - nameplate
Integrated excl China
14%
Technology Centre

Established in 2001 in line with the strategy

Completely new set of laboratories purpose built

New equipment and pilot facilities

Research (process & product dev.) staff expanded from a few
technicians to 40

Focus Specifically on the Process & Product Applications
 Wood to end-product capability
24 | Analyst Visit | Saiccor | 01 March 2011
Technology Centre

Our customer end use and raw material influence

Our process and how to influence or change the properties – tailor
making

Cellulose fundamentals – solvation, rheology, ‘accessibility and
reactivity’, crystallinity, fibre structure

Understanding the cellulose ‘package’

Emerging technologies

Process Trouble Shooting
25 | Analyst Visit | Saiccor | 01 March 2011
Risk Management


Integrated Management Systems

ISO 9001, ISO 14001 and

OHSAS 18001

FSC (chain of custody)
Behaviour Based Safety (SHARP) Programme

Peer driven

Observations

Elimination of ‘at risk’ behaviour
26 | Analyst Visit | Saiccor | 01 March 2011
Amakhulu Scope
11 Ca
Digs
- 75 000 tons per year
LTSA
9 Mg
Digs
Bleach
2
Continua
3
Bleach
3
Continua
4
MgO 1
11 Mg
Digs
MgO 2
27 | Analyst Visit | Saiccor | 01 March 2011
Bleach
4
AMAKHULU
Continua
5
+ 300 000 tons per year
Net + 225 000 tons per year
LignoTech South Africa
28 | Analyst Visit | Saiccor | 01 March 2011
Lignosulphonate End Uses
Oil Well Additives
Concrete Admixture
Tiles & Bricks
Dust Control
Animal Feed
Binders
Gypsum / Board
Other
Total Market = 1 million tons
29 | Analyst Visit | Saiccor | 01 March 2011
LignoTech SA

Joint Venture
LignoTech South Africa (“LTSA”) is a 50/50 Joint Venture between Sappi Saiccor &
Borregaard Industries of Norway (an Orkla subsidiary)

JV agreement signed in Dec 1997 (Separate company)

Borregaard responsible for Technology, R&D and Export Sales

Saiccor responsible for Raw Material, Services/Utilities and Lease

LTSA responsible for Local Sales and New Product Development

Production commenced Dec 1998 ; capacity 55,000 tpa

Plant expanded to 172,000 tpa in 2008
30 | Analyst Visit | Saiccor | 01 March 2011
LignoTech SA
The Process
Thin liquor
Evaporator
Reactors
Centrifuge
Liquid sales
Warehouse
and packing
lines
Powder sales
31 | Analyst Visit | Saiccor | 01 March 2011
Spray
Drier
Thank you