The Competition Commission has approved without conditions the sale of Sappi Southern Africa’s Lomati Sawmill to Normandien Farms and handover is planned for 1 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.

In a press release, Sappi described Lomati as a legacy business in the Sappi portfolio. It 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 wetmill, kilns, and finger-joint plant.

“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. It is also the owner of the fast-growing South African Thirsti bottled water business”, Sappi stated.  

Commenting on the transaction, Sappi Southern Africa CEO Graeme Wild said Sappi is pleased to have concluded the sale. “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”, he said.

“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”.

Normandien is a privately owned company with forestry operations and four sawmills in KwaZulu-Natal and Mpumalanga. The processing plants are accredited by SABS or SATAS and supply quality sawn timber to local and export markets.

Sappi is confident that the 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”, the press release concluded.