Sappi to Permanently Close Mill in Muskegon, MI

Sappi will record a charge of approximately $30 million in the fourth financial quarter in respect of separation and other closure costs. Of this amount, an estimated US$10 million relates to non-cash charges. The fixed assets are fully impaired.

"The global economic downturn has resulted in very weak demand for coated fine paper worldwide. In North America, industry conditions remain very challenging, with current year to date shipments of coated wood free paper down 32 percent from 2007 levels and only modest recovery forecast for 2010," said Ralph Boettger, Chief Executive Officer of Sappi Limited, the parent of Sappi Fine Paper North America. "The permanent closure of the Muskegon Mill, while an extremely difficult decision to make, is necessary to ensure that we remain competitive in today's global marketplace. This decision is in line with our commitment to substantially improve Sappi's profitability and returns in all our businesses."