PAPER GLOBE INVESTING IN RESEARCH AND DEVELOPMENT. In this issue. Summer 2016

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1 Summer 2016 PAPER GLOBE INVESTING IN RESEARCH AND DEVELOPMENT In this issue Sappi to construct a second generation renewable sugar extraction demonstration plant 2 Sappi's Magno Plus products certified for HP Indigo digital presses 3 Galerie Bulk range Suitable for a diversity of applications 4-5 A toast to Sappi's elegant, ultra-bright white Algro Design carton board 6-7 Algro Guard OHG High-barrier paper based packaging solution 8 Sappi Holiday Gift Box entered into the Gold Ink Awards 9 Safety is crucial 10 Sappi to bring innovative, sustainable packaging solutions to FachPack Print and Paper Myths and Facts 11

2 Sappi to construct a second generation renewable sugar extraction demonstration plant at its Ngodwana Mill in South Africa Sappi has entered into an agreement with leading global supplier Valmet for the construction of a second generation sugar extraction demonstration plant to explore and optimise the extraction of biorenewable chemicals. The plant will be close to industrial size and will startup of the new plant is scheduled for the beginning of A renewable sugar extraction plant uses a modified pulping process to yield both bio-chemicals and cellulose fibre as products. Biochemical such as higher value organic acids, glycol and sugar alcohols can be produced and there are many others under development. Commenting on the decision, Andrea Rossi, Group Head Technology, explained that the demonstration plant will accelerate Sappi's move into new adjacent business fields based on renewable raw materials. Sappi's strategy includes seeking growth opportunities by extracting further value from existing production processes. The feedstock for the demonstration plant would be supplied from Sappi's Ngodwana dissolving wood pulp plant. The demonstration plant is the precursor for Sappi to consider construction of commercial plants at its dissolving wood pulp mills. The plant will also be used to improve the dissolving wood pulp manufacturing process. He goes on to say The demonstration plant will make it possible to study the next generation dissolving pulping process and test new ideas at mill scale. The main features which we hope to demonstrate include increasing production output, higher dissolving pulp quality, lower operating cost and a new optimised hydrolysate revenue stream. The products from the demonstration plant will assist in the development of various beneficiation options for the different dissolving wood pulp lines operated by Sappi. Louis Kruyshaar, leader of the new Sappi Biotech division commented: New revenue opportunities include possibilities to extract biobased materials from the cooking plant prehydrolysate stream (such as hemicellulose sugars and lignin) for beneficiation to higher value biochemicals. These applications respond to the global demand for renewable materials with a lower carbon footprint. The products under development will expand Sappi's renewable biomaterials offering which include nanocellulose, biocomposites and lignosulphonate. This technology will also further enhance Sappi's global competitiveness and cost leadership and strengthen its production base in South Africa. 2

3 BRAND NEWS - NEW BRANDS Sappi's Magno Plus products certified for HP Indigo digital presses Sappi's Magno Plus Gloss and Plus Silk high bulk products deliver more value and outstanding print results. In addition to high performance offset printing they are now fully certified for use on HP Indigo digital presses. Flavio Froehli, Sales Director for Sappi's commercial print products said, We are delighted that Magno Plus products have received this certification, the entire Magno range of products are already extensively used on all types of digital presses but this certification for HP Indigo presses provides additional quality assurance by the market leader. Sappi Magno supports the overall efficiency of printed media by offering multi-use products that avoid the need for duplicated stocks, ensuring production flexibility between offset and digital processes whilst retaining the high quality and consistency Magno is renowned for, Froehli adds. The Magno graphic paper range offers seven products including gloss, silk, matt in standard or hibulk options and uncoated surfaces, basis weights range from 80g/m² to 400g/m² with all products having an aligned high white shade. For further information, samples or to organise a trial please contact your local Sappi sales office. 3

4 BRAND NEWS - NEW BRANDS Galerie Bulk range Suitable for a diversity of applications Since the launch of the Galerie Bulk range of products, Sappi has received very positive product reviews and performance feedback both from printers and publishers across the globe. With a bulk measurement of 1.0 cm3/g to 1.4 cm3/g, this range of products offer customers many possibilities to meet their print demands and cost expectations. Korea Sappi Galerie is a first-class coated publication paper tailored for end use in publishing and advertising. It performs in a wide range of basis weights and offers a great yield advantage. Sappi Galerie adds the assurance of high quality visual reproduction and reliability. All these make Sappi Galerie the most widely-used grade in publishing. Download the product information sheets from the Sappi website or contact your local Sappi office to obtain further information and samples. 4

5 BRAND NEWS - NEW BRANDS Galerie Bulk range Suitable for a diversity of applications Even though Galerie Fine bulk is designed for HSWO printing, Industria Grafica Cimagraf, a printer in Peru, has used it for printing a dictionary in sheet fed offset with great results. Nelly Vila, Purchasing Manager, commented that the paper was run through an 8 color sheet fed press at 12,000 impressions per hour and the performance was perfect. Australia Ms Nelly Vila from Cimagraf and Sappi Trading Sales Manager Maria Antonia Toro Garcia with a copy of the Dictionary. Spotpress Pty Ltd, a printer in Australia, has been using Galerie Fine Bulk and Brite Bulk since early 2016 for printing periodicals. Sappi's Galerie Fine Bulk came to the rescue to meet the needs of a particularly fastidious client following the withdrawal from the marketplace of a stock that had been employed on this product for some considerable time. It stepped up to meet the client's expectation from both a cost and production values perspective and has provided Spotpress with a solid reference sample said Michael Mohi, Sales Manager, Spotpress. In China, Galerie Fine Bulk is used for school text books. Publishers in Thailand and South Korea choose Galerie Brite Bulk for their weekly magazines. In Japan, Galerie Brite Bulk is used to print IKEA promotional materials and in Mexico one of the largest magazine publishers, Editorial Televisa, has chosen Galerie Brite Bulk for their comic periodicals. Thailand 5

6 NEW BRANDS - BRAND NEWS A toast to Sappi's elegant, ultra-bright white Algro Design carton board Sappi Europe proudly reports that the famed House of Besserat de Bellefon, based in Epernay in the Champagne region of France, has chosen to package its crown jewel, Cuvée des Moines, in a presentation case constructed of elegant, bright-white Sappi Algro Design carton board. The challenge was to find an ultra-bright white carton board that could stand up to the process of applying complex finishes, and Algro Design fit the bill perfectly. Michel Lassalle, who heads the luxury market department of Artigrafiche, the Italian leader in packaging for the wine and spirits market, was a key partner for the House of Besserat de Bellefon in choosing the carton board. He says, Algro Design is set apart by its peerless white surface, and it does not tear even if it is subjected to very deep and multiple embossing operations. It offers a luxury look and feel and is ideal for complex finishing processes. Finding the right solution Lassalle explains that the graphic design for the packaging required a pure white background with a metallic effect, adding, Since we were using embossing and hot foil, we needed the very best materials to cope with the stress of these finishing processes. Algro Design from Sappi ticked all the boxes. By printing with a matt varnish, we managed to create a natural finish. The extreme smoothness of the Algro Design material also works well with cold foil, which in turn enabled us to use bespoke metallic colours. In addition, the board remains exceedingly stable on the press, which makes it the perfect solution for packaging high-end luxury products like Cuvée des Moines. The Besserat de Bellefon approach to sourcing ensures that only the very best parcels of grapes from the best Champagne vineyards are used. That philosophy also extends to the packaging 6

7 NEW BRANDS - BRAND NEWS A toast to Sappi's elegant, ultra-bright white Algro Design carton board decisions for Cuvée des Moines and other brands within its portfolio. Marine Gantet, Brand Manager at Besserat de Bellefon, comments, From the winemaker to the export director, all of the teams share the same philosophy which is based on tradition and sophistication harnessed together to ensure the excellence of our Champagnes. In order to present our bottles in the best light, we needed a presentation case that was up to the standard of its contents. From a graphic design perspective, the key objective was elegance and purity, and we achieved that with the Algro Design solution. Enhancing the relationship between the brand and its customers Lasalle remarks, The market looks for brands to enhance luxury packaging. This has led to an increasing use of gold foil, cold and hot silver foils and other metallised films in the finishing process. I am delighted with the results achieved for the Besserat de Bellefon packaging. The packaging really enhances these iconic products. the production of high quality premium packaging. A large number of demanding brand owners and packaging converters have recognised that it is the ideal material for high quality and prestige packaging. Algro Design (front side double coated, reverse side - uncoated) and Algro Design Duo (symmetrically double coated on front & reverse side) both demonstrate brilliantly how Sappi has been able to channel all of its science and expertise into the art of producing cellulose premium solid bleached carton board. Algro Design's immaculate ultrabright white finish, very high UV resistance, and silky touch are extremely impressive. Processors who have used Algro Design have consistently proven that ultra-bright white carton board with a high quality surface finish is the ideal material to ensure consistent excellence in printing and finishing. The evenness of the material surface creates a unified appearance for the packaging, adding significant shelf appeal. For more information about speciality substrates from Sappi, visit For more information about Besserat de Bellefon, please visit Gantet sums up by saying, Sappi is an invaluable partner. With this exceptional packaging for the House's line of Champagnes, I can only hope that our consumers enjoy experiencing the presentation case as much as they enjoy discovering the Besserat de Bellefon sensation when they taste the wine. The ideal material for high quality and prestige packaging Since its launch almost a decade ago, Algro Design has been one of the most popular SBB carton board products for Algro Design is available in weights from 160 to 400 g/m², Algro Design Card from 235 to 345 g/m² and Algro Design Duo from 250 to 380 g/m². Laminated versions in g/m², based on Algro Design, are available under the Algro Duo brand for applications requiring extreme rigidity. 7

8 NEW BRANDS - BRAND NEWS Algro Guard OHG High-barrier paper based packaging solution Algro Guard OHG is a paper-based packaging solution to replace multilayer barrier films by materials with a high share coming from renewable sources. This innovative paper from Sappi offers integrated functionalities, such as an effective barrier against oxygen, water vapor and grease combined with heat sealing properties. Applications Flow-wrap, sachets and pouches for: The food market, such as noodles, rice, confectionary, powered products, cereals, crisps and other dry and fatty food ingredients. The non-food market, such as dishwasher tabs and seeds. Product specification Algro Guard OHG Characteristic: one side coated glossy paper with functional barrier coating on reverse side Grammages: 92 g/m² Print: suitable for gravure and flexo printing Barrier properties: Oxygen transmission rate: 1.3 cc/m² d (23 C / 50 % r. h.) Water vapor transmission: 2.5 g/m² d (38 C / 90 % r. h.) Grease barrier: 12 Kit (Tappi 559) Mineral oil barrier: effective Other functionality: heat sealability 120 C (0.5 s / 1 bar) Certificates: FSC and PEFC, suitable for contact with food as per recommendation XXXVI BfR (German Health Administration) and foodstuff law of Austria and FDA Integrated barriers eliminate the need for special coating or lamination to maintain the flexibility of paper-based packaging. The innovative paper reflects market demand for alternatives to foil and plastic materials, reducing costs as well as environmental impact. In addition, Algro Guard features heat seal characteristics, removing the need for additional sealants. More than 80% of this paper-based packaging solution is made up of renewable materials. It is our goal to minimise the use of fossil-based plastic packaging with sustainable speciality papers from renewable, natural raw materials, explains Kerstin Dietze, Marketing Manager Speciality Papers at Sappi. Algro Guard OHG furnishes excellent optical appearance with a natural look and feel and good converting properties. Belgian chocolate manufacturer Delafaille is one of the first users, using the paper for packaging of its new luxury 'Amusette' brand. 8

9 NEW BRANDS - BRAND NEWS Sappi Holiday Gift Box entered into the Gold Ink Awards Classic Color of Broadview, Ill., US submitted the Sappi Holiday Gift Box into the Folding Cartons category at the Gold Ink Awards. Limited to 10,000 pieces and only using Sappi Opus paper in various weights, this gift box was created to illustrate how paper plays a tactile role in creating unforgettable experiences. Julie Greenbaum from Printing Impressions writes, The multicomponent gift set includes a gift box, gift bag, wrapping paper, gift tags, greeting cards and envelopes. Multiple process, PMS match and fluorescent colors and varnishes were used for this project and some of the special effects that were applied included peppermint and cinnamon scented varnishes on the wrapping papers, light matte sand texture coating, spot raised UV coating, spot UV pearl coating and soft feel UV lamination. In the interview with Printing Impression Jeffrey Hernandez, VP at Classic Color, mentions that the challenge to produce this project came with printing 11 inks, four varnishes, three coatings, lamination and using multiple converting processes. Quoting Hernandez, Printing Impressions writes, This project is a testimony for a great sheet of paper across multiple finishes, paper does make the big difference. Good luck to Classic Color of Broadview and Sappi Opus in the Gold Ink Awards! 9

10 NOTICE Safety is crucial Sappi Packaging and Speciality Papers together, one step ahead We are ready for SOLAS Container Weight Verification The incorrect declaration of container weight has led to accidents in the past and continues to pose a huge risk. To ensure safety of the crew, personnel on shore and the vessel, the International Maritime Organization (IMO) has implemented a new guideline. Effective 1st July, 2016 as per SOLAS Chapter 6, Part A, Regulation 2, every seagoing container worldwide will have to have a verified gross mass (VGM) in order to be loaded onto a vessel. The verified gross mass is the weight of the cargo plus the tare weight of the container. Sappi and its supply chain partners have made all the necessary preparations to be compliant with the new regulation. We will also work closely with port authorities and carriers to avoid any operational interruptions and the potential risk of delays during the implementation phase. How does it work Shipper's responsibility to obtain the VGM of the container Shipper to transfer VGM to carrier before VGM closing date Carrier to load containers with VGM and to transfer VGM to the Terminal of port of loading and port of discharge and to ensure tare weight on the container is correct The final load list of the vessel will only hold containers with VGM Containers with missing VGM will simply not be shipped Sappi to bring innovative, sustainable packaging solutions to FachPack 2016 The packaging industry meets from September 2016 in the Exhibition Centre Nuremberg, Germany Well-known brands, agencies, packaging manufacturers, printers and print finishers will be showcasing their latest products and solutions. Sappi will be presenting its environmentally sustainable carton and paper-based packaging solutions for Containerboard, Rigid Packaging, Flexible Packaging, Label Papers and Functional Papers in hall 9, stand

11 SUSTAINABILITY Print and Paper Myths and Facts When it comes to the sustainability of Print and Paper, it's important to separate verifiable facts from opinion and misleading information. Sappi is a member of the Two Sides organisation which is committed to promoting the responsible production, use and recovery of Print and Paper. Two Sides dispels common environmental misconceptions by providing users with verifiable information on why Print and Paper is an attractive, practical and sustainable communications medium. Forestry, paper and packaging are among the most sustainable industries in existence. CEO Perspectives, PricewaterhouseCoopers Visit to download the latest edition of TwoSides Myths and Facts booklet or contact your local Sappi office to obtain a copy of the printed booklet. 11

12 Sappi Trading Head Office 28/F, One Pacific Centre, 414 Kwun Tong Road, Kwun Tong, Kowloon, Hong Kong Tel