Sappi confirms widespread job cuts in SA
Major paper producer, Sappi has confirmed that it will cut a significant number of jobs at its South African plants in an effort to trim costs by R350-million next year.
Business Day says that the markets have responded well to the announcement of job cuts by Sappi and says that shares climbed by 5% immediately after investors were told of the cost-cutting measures.
It is part of a worldwide restructuring that has already led to closures of paper mills in Switzerland and South Africa. The company says that it intends to focus on higher-margin businesses such as chemical cellulose production that is used in a wide range of consumer goods.
Sappi says it wants to generate about 60% of its operating profits from higher-margin businesses in the next three to five years.
Read the full article on www.businessday.co.za.