Total European shipments of graphic papers in September 2020 were down 15.0% vs. September 2019 and year-to-date shipments are down 20.0%. Total European shipments of newsprint in September 2020 were down 14.8% vs. September 2019 and year-to-date shipments are down 18.0%. Total European shipments of sc-magazine in September 2020 were down 12.1% vs. September 2019 and year-to-date shipments are down 19.1%. Total European shipments of coated mechanical reels in September 2020 were down 23.4% vs. September 2019 and year-to-date shipments are down 27.6%. Total European shipments of uncoated mechanical (improved & others) in September 2020 were down 2.6% vs. September 2019 and year-to-date shipments are down 9.0%. Total European shipments of coated woodfree in September 2020 were down 23.0% vs. September 2019 and year-to-date shipments are down 26.4%. Total European shipments of uncoated woodfree in September 2020 were down 7.1% vs. September 2019 and year-to-date shipments are down 14.9%.

Sappi has entered into a Water Stewardship agreement with WWF-SA (World Wide Fund for Nature South Africa), aimed at improving the water security in the uMkhomazi catchment area. With its significant manufacturing and forestry footprint in this catchment area, which forms part of the Southern Drakensberg Strategic Water Source Area in KwaZulu-Natal, it makes sense for Sappi to focus its collaborative efforts here, where its Saiccor Mill and 42,000 ha of its forestry land is situated. The catchment also serves commercial farmers, subsistence farmers and domestic users in dispersed settlements across the area, but with it being underdeveloped, faces extensive development changes soon. To meet the future needs of all users, sufficient water at an acceptable level of assurance and quality must be secured. Sappi believes that this can only be achieved through multi-stakeholder collaboration across the landscape. To help coordinate and facilitate the approach, Sappi has launched a two-year project with WWF to engage local communities, civil organisations, leadership and regulatory authorities in dialogue and cooperation focused on water stewardship. This collaborative approach is an extension of an innovative structure, known as the Integrated Community Forum (ICF), which Sappi introduced and uses to engage with local adjacent communities.

The packaging and speciality papers segment reached another record level of profitability despite flat year-on-year sales volumes, which were constrained by available capacity and low inventory levels in North America and South Africa. Demand remained robust and further selling price increases lifted margins for the segment. Graphic paper sales volumes were 4% higher than the prior year. The segment benefited from tight market conditions which supported selling price increases and drove margin growth. These favourable market conditions enabled all assets to run at full operating rates during the quarter. A substantial improvement in profitability of the European business was a result of favourable market conditions, which facilitated selling price increases in the paper segments and enabled the region to offset higher costs across all input categories. Profitability of the North American business continued its upwards trajectory with the region recording yet another record quarterly EBITDA of US$118 million.