Sappi is a global

diversified wood fibre company focusing on providing dissolving pulp, packaging

and speciality papers, graphic papers as well as biomaterials and biochemicals

to their direct and indirect customer base across more than 150 countries. In

2013, Sappi shifted its South African timber resources into the production of

dissolving wood pulp to meet growing demand for viscose fibre in the Far East,

as traditional paper markets decline. With the recent completion of major

expansion and conversion projects at its Ngodwana and Cloquet mills and the

ramp-up of production of dissolving wood pulp, Sappi has re-positioned itself

to take advantage of growing markets for this versatile product. "The

group has invested substantial money in South Africa and North America into the

production of specialised cellulose," said Alex Thiel. "We need to

move Sappi's traditional paper business into areas of more long term,

sustainable growth." He pointed out that this does not mean that Sappi is

walking away from its traditional business of producing paper pulp and fine

paper. "There's limited growth potential for fine paper, so we are

adjusting our capacity," said Alex. "We supply according to the

market demand but there is no huge growth. In fact, competitors have started

exiting the industry, leaving us with more market share but it is still not a

viable market at the moment."

According to

Alex Thiel fine paper was regarded as a ______, considering the BCG

growth-share matrix categories.