What began as a search for a solution to an environmental challenge has grown into a global success story for South African pulp and paper producer Sappi and Norwegian partner Borregaard.
On Friday the two companies celebrated the opening of the expansion of LignoTech South Africa at Umkomaas on the KwaZulu-Natal South Coast. The R330-million investment will see production trebling at LignoTech South Africa, with the creation of 36 direct new jobs and the potential for as many as 380 indirect new jobs as a result of the expansion.
The plant is now the largest producer of specialty lignin chemicals in the world. Sappi’s new CEO Jonathan Leslie said it was appropriate that his first project opening should be at LignoTech South Africa, as he had first come into contact with the company while he was in charge of a mining operation at Rio Tinto in the 1990s.
At that time Sappi had been testing a new product for dust suppression before the formation of LignoTech. Lignotech SA — a joint venture between Sappi and Borregaard — was formed in 1999. It produces lignosulphate, which is based on the binding agent of wood and a co-product of pulp production. Lignin based products are used as dispersing agents in concrete, textile dyes, pesticides, ceramics and as binding agents in briquetting, animal feed and dust suppression.
“LTSA is the quintessential new business development. Here we have been able to generate revenue from a previously unused component of pulping process effluent, not only providing a solution to an environmental challenge, but building a business that has made an enormous difference to the local community and is a valuable addition to both the Sappi and Borregaard investment portfolios,” said Leslie.
“The use of specialty lignin chemicals worldwide is growing as the search for economical and environmentally-sound industrial and agricultural additives picks up pace. Some 90% of the plant’s output is exported to countries all over the world earning important foreign exchange for the country,” said Leslie.
He said this campaign had four underlying principles — that the product comes from South Africa and adds value to society; it meets international quality standards; it employs good labour and environmental practices; and that it complies with international environmental standards.
“This project qualifies easily with these dimensions,” he said. – I-Net Bridge