Sappi to invest $418m in Somerset paper mill expansion in Maine

Sappi North America, will invest $418 million to ramp up the production capacity and manufacturing of solid bleached sulfate board (SBS) products at its Somerset paper mill in Skowhegan, Maine.

As part of this, the American woodfibre products manufacturer will rebuild Paper Machine No. 2 at the paper mill.

Mike Haws — Sappi North America President and CEO said: “This move complements our long-term Thrive25 strategy, which focuses on growing our portfolio in packaging and specialty papers, pulp and biomaterials.

“By investing in our business to pursue growing areas of demand, we can remain profitable and competitive in the global marketplace.

“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.

“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.”

To be financed from free cash flow, the proposed paper mill expansion project at the Somerset Mill in Maine is scheduled to become operational early in 2025.

Of the three paper machines at the Somerset Mill, one has already been renovated to manufacture approximately one million metric tonnes of paper and 525,000 metric tonnes of paper pulp every year.

Considered to be a sustainable alternative to plastic packaging, solid bleached sulfate board is used in premium packaging for health and beauty care, perfume and cosmetics, confectionery, consumer electronics, and luxury drinks.

solid bleached sulfate board is also used for foodservice items, including plates, cups, and dishes.

Sappi North America’s four diversified businesses include graphic papers, packaging, dissolving pulp, and specialty papers. It is a subsidiary of Sappi Limited, which is headquartered in Johannesburg, South Africa.