South Africa-based wood pulp and paper maker Sappi has sold its Cape Kraft recycled packaging paper mill to Golden Era Group.
The development comes a fortnight after Sappi inked a pact to sell its Enstra Mill recycled containerboard and kraft papers business located in Springs near Johannesburg to Corruseal Group.
Based in Cape Town, the Cape Kraft mill recycles 67,000t a year to an annual output of 60,000t.
The transaction for Cape Kraft mill, which is expected to close in September, follows a closed tender process in March 2015.
Sappi will receive around $49m from the two transactions.
Golden Era Group CEO Kishor Chhita said: "We are very pleased to be able to acquire this top quality asset from Sappi.
"It will strengthen our position in the market as a service-oriented company that offers packaging solutions and will further help us to achieve our goal of creating lasting team-based partnerships with our customers."
Golden Era Group, established in 1955 and headquartered in South Africa, specializes in making kraft paper, corrugated cases, and thermos-formed packaging, among others.
Sappi Southern Africa CEO Alex Thiel said: "The sale of the Cape Kraft and Enstra mills and the recycled packaging paper business is in line with Sappi Southern Africa's strategy to unlock value from non-core assets and free up resources for investment in dissolving wood pulp, virgin containerboard and other new business opportunities."
