{"id":854787,"date":"2026-03-24T17:00:00","date_gmt":"2026-03-24T15:00:00","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=854787"},"modified":"2026-03-24T16:53:43","modified_gmt":"2026-03-24T14:53:43","slug":"unique-factory-carrying-a-small-town-in-south-africa-risks-shutting-down-after-60-years","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/business\/854787\/unique-factory-carrying-a-small-town-in-south-africa-risks-shutting-down-after-60-years\/","title":{"rendered":"Unique factory carrying a small town in South Africa risks shutting down after 60 years"},"content":{"rendered":"\n

The Sappi Ngodwana Mill in Mpumalanga\u2014and the small town that depends on it\u2014could face an uncertain future without urgent government intervention.<\/p>\n\n\n\n

Multinational paper and pulp producer Sappi has formally applied to the International Trade Administration Commission of South Africa (ITAC) for a 5% tariff on imported newsprint.<\/p>\n\n\n\n

The company has argued that a surge of cheap foreign products is putting the local industry under severe pressure. <\/p>\n\n\n\n

The application is currently under consideration, and Sappi has made it clear that the stakes are high.<\/p>\n\n\n\n

\u201cWith global overcapacity and increasing low-priced imports, Sappi\u2019s newsprint facility has faced persistent financial losses,\u201d the company said in its submission.<\/p>\n\n\n\n

\u201cWithout the requested tariff intervention, the continued viability of South African newsprint manufacturing is at significant risk.\u201d<\/p>\n\n\n\n

The Sappi Ngodwana Mill is a massive industrial operation that has been running since 1966 and is the economic backbone of Ngodwana, a small town in Mpumalanga\u2019s Ehlanzeni District.<\/p>\n\n\n\n

The potential loss of the plant would not only disrupt national production but could also devastate the local community that relies on it.<\/p>\n\n\n\n

Sappi\u2019s chief executive for Southern Africa, Graeme Wild, told Business Day<\/a> that the influx of low-cost imports has made it increasingly difficult for the company to compete.<\/p>\n\n\n\n

\u201cThis has resulted in reduced operating rates and constrained the mill\u2019s ability to compete on a level playing field,\u201d he said.<\/p>\n\n\n\n

South Africa\u2019s print sector has already been weakened by the rapid shift to digital media and rising production costs.<\/p>\n\n\n\n

Newspapers and magazines have either shut down or moved online, reducing demand for locally produced newsprint.<\/p>\n\n\n\n

This has compounded the pressure from imports, creating what Sappi described as a perfect storm for domestic manufacturers. The Ngodwana Mill is a critical industrial hub.<\/p>\n\n\n\n

According to its website, it contributes<\/a> approximately R5.8 billion to the local economy and directly employs around 1,100 people, supporting thousands of livelihoods in the surrounding region.<\/p>\n\n\n\n

Produces energy to support 20,000 households<\/h2>\n\n\n\n
\"\"<\/a><\/figure>\n\n\n\n

The factory also plays a central role in sustaining secondary businesses, contractors, and community initiatives.<\/p>\n\n\n\n

The mill produces a wide range of products, including paper pulp, newsprint, containerboard, and dissolving wood pulp used in textiles and other applications.<\/p>\n\n\n\n

Since the launch of its Project GoCell initiative in 2013, it has also tapped into the growing global market for dissolving pulp, diversifying its revenue streams.<\/p>\n\n\n\n

In addition to its manufacturing output, the facility is a key contributor to renewable energy generation.<\/p>\n\n\n\n

Using biomass, the mill produces steam and electricity, exporting surplus power to the national grid.<\/p>\n\n\n\n

On average, this energy supports around 20,000 households and employs roughly 180 people related to its operation.<\/p>\n\n\n\n

Sappi has also invested in community upliftment programmes in the region, including a training initiative that has equipped more than 800 residents with construction and building skills.<\/p>\n\n\n\n

Many of these trainees go on to find work during annual maintenance shutdowns or in smaller local projects, helping to stimulate economic activity in the area.<\/p>\n\n\n\n

Sappi argued that without tariff protection, the continued influx of cheap imports will further erode the competitiveness of locally produced newsprint, placing the entire operation at risk. <\/p>\n\n\n\n

\u201cProtection against low-priced imported newsprint is critical to maintain operations, safeguard employment, and support the national economy,\u201d the company said.<\/p>\n","protected":false},"excerpt":{"rendered":"

The unique factory in Mpumalanga\u2014and the small town that depends on it\u2014could face an uncertain future without urgent government intervention.<\/p>\n","protected":false},"author":92,"featured_media":854792,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9872],"tags":[13634,25070,22441],"class_list":["post-854787","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-sappi","tag-sappi-ngodwana-mill","tag-the-international-trade-administration-commission-of-south-africa-itac"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/854787","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/92"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=854787"}],"version-history":[{"count":5,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/854787\/revisions"}],"predecessor-version":[{"id":854823,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/854787\/revisions\/854823"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/854792"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=854787"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=854787"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=854787"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}