A Reflection on Sappi North America's Year of Progress From CEO Steve Binnie

This past year saw significant progress at Sappi North America (SNA). For the second year running, we produced an excellent safety performance — again lowering the injury frequency and severity ratings to record-low levels. I would like to thank each and every staff member for their personal commitment to this journey.

In 2019, a debottlenecking project at Cloquet Mill was completed that will boost dissolving wood pulp production. Another significant highlight was the acquisition and integration of the Matane high-yield pulp mill in Quebec, Canada, to bolster further expansion in the group and the region’s packaging and speciality paper capacity. Sales volumes and contributions increased from packaging grades produced on the converted Paper Machine 1 (PM1) at the Somerset Mill, delivering on our strategy to increase capacity in higher-growth and higher-margin product segments.

As a renewable resource company, we are focused on maintaining the health of the forests, insisting that our timber suppliers apply responsible forestry management practices and encouraging the use of third-party certification programs. This past year, we worked with our print customers to secure the benefits that printbased communication delivers and supported the local economies where we operate through ongoing investment in our facilities. We also continued to provide customers with sustainable, responsible, and renewable product choices in a carbon-constrained world. SNA is well-placed to deliver value across all of our sustainability goals during 2020.