South Africa is the only African producer of pulp and paper other than Swaziland. Pine forests in the equatorial climate found in Kwazulu-Natal and Mpumulanga provide abundant raw materials. South Africa produces approximately 370,000 tons of mechanical wood pulp, 1,500,000 tons of chemical wood pulp, 316,000 tons of newsprint, 970,000 tons of printing and writing paper and more than one million tons of other paper and paperboard each year.
The two main pulp and paper companies are Sappi, which is listed on the London, Paris and Johannesburg Stock Exchanges, and Mondi, which forms part of the Anglo American Industrial Corporation. Other companies are parastatal Safcor and Hunt, Leuchars and Hepburn (HLH).
Downstream packaging companies include Nampak, Kohler and its subsidiary Carlton Paper, and Consol, which together share more than 80% of the market. Hortors, Bowler Metcalf, Aries, Alex White, Harwill, Clegg, Plastall, Rheem, Transpaco and Coates Brothers are other local operatives, together with Swedish company, Ekman Liebig.
Mondi and the Dutch group, KNP BT, have restrucured their paper merchanting interests in South African companies Paperlink and Finwood. Between them, Nampak and Carlton Paper control 70% of the SA tissue industry. Nampak's factories at Klip River and Cape Town produce 50 000 tons/year. Carlton Paper produces 47 000 tons/year.
Margins in South Africa have traditionally been 5% higher than overseas making it a very lucrative market.
