Sappi will close its Usutu Pulp Mill in Swaziland, the paper manufacturer said on Friday.

The move was "in response to adverse market conditions, as well as the cumulative severe impact of fire damage over the past few years, in particular the fires of August 2008 which destroyed 40 percent of the Usutu timber crop", the company said in a statement.

Sappi would begin the process of consulting with staff and all other interested parties regarding its intention to close the operation on January 31, 2010.

"With the closure of the mill Sappi would also exit the unbleached softwood flash-dried pulp market served by Usutu Pulp Mill," Sappi said.

The mill has a capacity of 190 000 tons annually.

Sappi said it would continue to seek future beneficiation opportunities for the profitable use of the Usutu forests.

"This could include the introduction of new investors," it said.

The Sappi Usutu Pulp Company directly employs around 600 people.

Sapa

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