Sappi cuts capital spend R1.5bn as it braces for Covid-19 fallout

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Sappi cuts capital spend R1.5bn as it braces for Covid-19 fallout
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The pandemic had a minimal effect on Sappi’s operations in its half year to end-March, but it is already seeing a decline in orders

Sappi, the world’s largest maker of fibres made from wood pulp, slashed capital expenditure by nearly a fifth as it painted a bleak 2020 picture due to stalling orders from clients responding to the Covid-19 pandemic.

Sappi, which also reported a hefty 97% slump in quarterly profit on Thursday, has repositioned itself as a paper packaging company to capitalise on the global switch from plastic while its viscose fibres meet increasing demand for alternative textile to cotton from the fashion industry.

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