Sappi Southern Africa is consolidating its paper divisions to strengthen its ability to meet customer requirements and develop new business opportunities, the South African-based group said in a statement. 

The move will see the merger of Sappi’s paper and paper packaging businesses to better meet its strategic objectives and generate profits.

Sappi Fine Paper South Africa and Sappi Kraft will merge to become Sappi Paper and Paper Packaging South Africa (SA). Jan Labuschagne, CEO of Sappi Southern Africa, will assume direct responsibility for the new division.

Albert Lubbe, will retire from his position as Managing Director of Sappi Kraft at the end of July 2010. He has served the group and industry with distinction since joining Sappi in 1997 as the Managing Director of Sappi Fine Paper South Africa and indeed can be credited with beginning the drive to bring Sappi closer to our customers.  He has also served the industry as chairman of the Paper Manufacturers Association (PAMSA) for the past 10 years.

Dinga Mncube is appointed as the new Executive Director Marketing: Sappi Paper and Paper Packaging SA. He brings his extensive experience to this new role where he will be responsible for all sales and marketing activities related to paper and paper packaging in South Africa, as well as for new products and market development. He was previously the Managing Director of Sappi Forests and thereafter the Managing Director of Sappi Fine Paper South Africa. Dinga is also the current vice-chair of Forestry South Africa. He has been with Sappi for 17 years and holds an MSc (Forest Products) from the University of Idaho (USA) and an MCom from the University of Johannesburg.

Patrick (Pat) McGrady is appointed as Manufacturing Director: Sappi Paper and Paper Packaging South Africa (SA). The position will have primary responsibility for all paper and paper packaging operations in South Africa. Pat was previously the Regional Engineering Services Manager for Sappi Southern Africa. He holds a BSc Electrical Engineering degree from the University of KwaZulu-Natal.

It also announced that Alan Tubb will be retiring as Managing Director of Sappi Saiccor at the end of December 2010 having served in this role for 14 years. He has been instrumental in establishing Sappi as a world leader in chemical cellulose and he recently oversaw the successful expansion of Sappi’s Saiccor Mill taking market volumes from some 600,000 tons to 800,000 tons per annum.

Gary Bowles will succeed Alan Tubb as Managing Director of the renamed Sappi Chemical Cellulose division. Gary is well qualified for this role and is currently the General Manager of the Sappi Saiccor Mill. He has been with Sappi since 1990 and holds a BSc Engineering degree from the University of KwaZulu-Natal. He assumes his new position on 01 January 2011.

Commenting on the changes and appointments made, Sappi SA CEO Jan Labuschagne, said:

“By consolidating our paper and paper packaging businesses we are ensuring that we remain well positioned to respond effectively to the requirements of our customers and to drive strongly the key message that paper and paper packaging have a strong future and remain the best choice for many applications. In this regard Dinga Mncube will play a critical role to lead and drive this initiative and focus for Sappi Southern Africa. In addition, he is also being tasked with the development of new products and markets.” He continued, “By putting in place early the succession plan for our chemical cellulose business we are ensuring that there will be no disruption in this important and growing segment of our business.”

Commenting on the announced changes in Sappi’s Southern African business, Ralph Boëttger, CEO of Sappi Limited, said: ”Our chemical cellulose business continues to grow in importance and the early announcement regarding succession in this division, will help to ensure the seamless transition from one leader to another.” He continued, “As to our paper businesses in Southern Africa, our global strategy and commitment is to move ever closer to our customers to ensure we better meet their requirements. Combining the paper and paper packaging businesses thus makes strategic sense and will contribute to the group delivering on its strategic priorities and profitability objectives.”