Sappi concludes sale of Lomati Sawmill to Normandien Farms

Sappi Southern Africa Limited (“Sappi”) is pleased to announce that the Competition Commission has approved the transaction in terms of which Normandien Farms (Pty) Limited (“Normandien”) will acquire the Lomati Sawmilling business (“Lomati”) from Sappi.

Importantly, the approval has been granted without conditions, enabling Sappi to move ahead with the implementation phase of the transaction with the handover planned for 01 September 2025.

In terms of the agreement, Sappi will transfer Lomati and its assets as a going concern, ensuring all current Lomati employees benefit from continued employment. Lomati is a legacy business in the Sappi portfolio, and this transaction presents an opportunity to transition ownership to an experienced industry player capable of driving future growth and transformation. Normandien is a reputable, privately owned South African industrial company operating in the sawmilling industry as Tekwani, and is also the owner of the fast-growing South African Thirsti bottled water business.
 

Sappi remains confident that this transaction is in the best interests of all stakeholders. It enables us to focus on developing and growing our core businesses in Mpumalanga. We are committed to supporting a smooth handover that sustains employment and unlocks new growth potential for the mill, to the benefit of the greater Umjindi community.

Commenting on the transaction, Sappi Southern Africa CEO Graeme Wild said: “We are pleased to have concluded the sale of the Lomati Sawmill to Normandien Farms. 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. Importantly, it also 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 added: “The Lomati Sawmill fits perfectly with our strategy to expand our footprint in the South African timber industry. We look forward to building on the strong foundation established by Sappi and unlocking new opportunities for growth and innovation.”

About Lomati Sawmill

Lomati Sawmill produces SABS-approved, kiln-dried pine lumber from sawlogs, with a production capacity of 86,000 m³ per annum. The mill primarily serves the building, furniture, and packaging industries. Since its opening in 1971, Lomati has undergone several expansions, including significant upgrades to its wet mill, kilns, and finger joint plant. Its structural lumber complies with South African national standards and carries the South African Bureau of Standards (SABS) mark of approval.
 

About Normandien Farms

Normandien Farms is a privately owned South African industrial company operating in the sawmilling and forestry sectors. With processing plants and forestry operations strategically located in KwaZulu-Natal and Mpumalanga, Normandien supplies quality sawn timber to both local and international markets. The company is also the owner of Thirsti, a fast-growing bottled water brand. Normandien is driven by a strong culture of entrepreneurship and continuous improvement, with all processing plants accredited by SABS or SATAS.