Sappi to Sell South Africa’s Lomati Sawmill to Normandien Farms

On Monday, Sappi Southern Africa announced that South Africa’s Competition Commission has approved the sale of its Lomati Sawmilling business to Normandien Farms without conditions, clearing the way for the transaction to proceed. The handover is scheduled for September 1.

Located in Mpumalanga, South Africa, Lomati Sawmill produces SABS-approved, kiln-dried pine lumber from sawlogs, with a capacity of 86,000 m³ per year. It serves the building, furniture, and packaging industries, and has undergone several expansions since opening in 1971.

Under the agreement, Lomati and its assets will transfer as a going concern, with all current employees retaining their positions. Sappi said the sale supports its strategy to focus on core businesses in Mpumalanga, while placing Lomati with an experienced operator able to drive growth and transformation.

“This transaction is in line with Sappi Southern Africa’s strategy to unlock value and focus on our key product segments of dissolving wood pulp and containerboard,” said Sappi Southern Africa CEO Graeme Wild. “Importantly, it ensures the continued operation of the mill and the retention of jobs, which will benefit the greater Umjindi community. Our commitment to Mpumalanga remains strong through our forestry operations in the province.”

Normandien Farms CEO Sean Hoatson said, “The Lomati Sawmill fits perfectly with our strategy to expand our footprint in the South African timber industry,” adding that the company looks forward to “building on the strong foundation established by Sappi and unlocking new opportunities for growth and innovation.”

Normandien Farms is a privately owned South African industrial company operating in the sawmilling and forestry sectors through its Tekwani brand. The company has operations in KwaZulu-Natal and Mpumalanga, supplying sawn timber to local and export markets, and also owns the Thirsti bottled water brand.