South African paper and packaging group Sappi is looking at cogeneration projects for its Ngodwana and Saiccor mills in South Africa.

Sappi CEO Ralph Boëttger said the company had expanded the capacity at its KwaZulu-Natal-based Saiccor plant and its Ngodwana mill, in Mpumalanga, to produce electricity, but that there were no concrete plans in place yet.

Sappi is currently undertaking a $240m expansion of the Ngodwana mill as well as a $170m conversion of its Cloquet mill, in Minnesota, in the US.

“We still expect to start producing pulp at both facilities in the second half of calendar next year or in the third financial quarter next year,” said Boëttger .

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