SOUTH AFRICA -- Sappi Limited says it has entered into an agreement with leading global supplier Valmet for the construction of a second generation sugar extraction demonstration plant to explore and optimize the extraction of biorenewable chemicals.

The plant will be close to industrial size and will be located at Sappi's Ngodwana Mill in South Africa. Start-up of the new plant is scheduled for the beginning of 2017.

Commenting on the decision, Andrea Rossi, Group Head Technology, explained that the demonstration plant will accelerate Sappi's move into new adjacent business fields based on renewable raw materials. Sappi's strategy includes seeking growth opportunities by extracting further value from existing production processes.

The feedstock for the demonstration plant would be supplied from Sappi's Ngodwana dissolving wood pulp plant. The demonstration plant is the precursor for Sappi to consider construction of commercial plants at its dissolving wood pulp mills. The plant will also be used to improve the dissolving wood pulp manufacturing process.

South African headquartered Sappi, is a leading global producer of dissolving wood pulp and graphics, speciality and packaging papers.