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Johannesburg - Paper maker Sappi [JSE:SAP] said on Wednesday it would permanently close its Adamas mill in Port Elizabeth in the Eastern Cape by the end of August.
Sappi had announced in May it was planning close the mill in response to difficult market conditions and input cost increases.
The company said the volumes produced at the mill have been transferred to its Enstra and Tugela mills.
"We expect to take a charge of approximately $5m in respect of these closure costs in the fourth financial quarter ended September 2011," the company said in a statement.
Sappi also said redundancy notices have been issued to employees at the mill. The mill employed 213 people, it said.
Sappi, the world's largest maker of fine paper used in glossy magazines such as Vogue, also said last month it would close its entire Biberist Mill in Switzerland after failing to find a buyer.
Sappi had announced in May it was planning close the mill in response to difficult market conditions and input cost increases.
The company said the volumes produced at the mill have been transferred to its Enstra and Tugela mills.
"We expect to take a charge of approximately $5m in respect of these closure costs in the fourth financial quarter ended September 2011," the company said in a statement.
Sappi also said redundancy notices have been issued to employees at the mill. The mill employed 213 people, it said.
Sappi, the world's largest maker of fine paper used in glossy magazines such as Vogue, also said last month it would close its entire Biberist Mill in Switzerland after failing to find a buyer.
