Johannesburg, South Africa 01 February 2017 -- (From the Independent Online) -- Sappi has said that it was planning to increase its dissolving wood capacity by more than 30 percent in the next four years to extract maximum value from the wood fibre value chain.

The company said on Tuesday that it would continue to invest in South Africa and develop its dissolving wood pulp at the Ngodwana and Saiccor plants.

Chief executive Steve Binnie said Sappi would also increase its capital expenditure in South Africa, because the country still provided good opportunities.

Binnie said Sappi had set aside $350 million in the 2017 financial year as capital expenditure in order to achieve this.

"We have moved away from being a company that has been known for producing glossy paper to a more diversified company," he said. "The Sappi of today is different from the Sappi of 12 years ago."

Sappi now is a business with diverse, yet focused business operations that aims to extract maximum value from the wood fibre value chain. It plans to increase dissolving wood pulp capacity by more than 30 percent over the next four years.