BOSTON, March 9, 2015 /PRNewswire/ -- Sappi North
America has filed a formal property tax abatement application with
the Skowhegan Board of Assessors
for the Somerset mill. Sappi filed
this request because the assessed value of the mill determined by
the Town of Skowhegan greatly
exceeds its fair market value. A fair valuation is critical to the
long-term financial health of the mill.
The value of paper mills across North
America has fallen sharply in the past few years due to
structural demand declines in the industry. Even mills like
Somerset that make coated paper
for use in high-end magazines and catalogs have experienced
shifting demand to digital advertising, tablets and mobile devices.
The lower demand has made it difficult for many mills to remain
profitable.
"Sappi intends to operate the Skowhegan mill far into the future, as
evidenced by the many significant investments we have made to
maintain its world-class status," said Mike
Haws, Managing Director of the Somerset mill. "But in order to remain
competitive, we must also be low cost. Sappi accepts its
responsibility to assume its fair share of the Town's tax burden,
based on an assessment that reflects the mill's true value.
Imposing an undue or excessive tax burden on the Somerset mill will not help our community,
quite the reverse. It will create a competitive cost disadvantage
in global markets and put jobs and future investment at risk."
In 2014, the Town of Skowhegan
lowered the appraised value of taxable assets at the Somerset mill from $564
to $464 million. Sappi has expressed appreciation for the
reduction in assessed value of the mill instituted by the Town last
year, but the company maintains that the reduction was not
sufficient to reflect the actual value of the mill.
A recent appraisal conducted by Duff & Phelps, a widely
respected firm skilled in appraising industrial properties such as
the Somerset mill, supports the
company's position that the Town of
Skowhegan has overvalued the mill. Based on the results of
the appraisal, the value of the taxable assets of the mill is
$326 million.
The Somerset mill remains a
vital contributor to the community and to the Maine economy. The mill employs more than 730
workers and its activities support jobs for thousands of Mainers.
Sappi has consistently demonstrated its commitment to keeping the
mill competitive and operating sustainably for many years to
come.
"Sappi is, by far, the largest taxpayer in Skowhegan and will continue to work with the
Town to find ways to minimize any financial impact that will result
from a fair valuation of the Somerset mill," Haws said. "We remain open to
working with the Skowhegan Board
of Assessors and Skowhegan
officials to reach an amicable resolution to the company's
abatement request."
About Sappi North America
Sappi North America, headquartered in Boston and a subsidiary of global pulp and
paper group Sappi Limited, is the market leader in converting wood
fiber into superior products that customers demand worldwide. The
success of our four diversified businesses – high quality Coated
Printing Papers, Specialised Cellulose, Release Papers and
Specialty Packaging – is driven by strong customer relationships,
best-in-class people and advantaged assets, products and services.
Our high quality Coated Printing Papers, including McCoy,
Opus, Somerset and Flo, are the
key platform for premium magazines, catalogs, books and high-end
print advertising. We are the world's largest manufacturer of
Specialised Cellulose used in a wide range of products,
including textile fibers and household goods, and the world's
leading supplier of Release Papers for the automotive,
fashion and engineered films industries. Our Specialty
Packaging products, such as LusterPrint and LusterCote,
represent an important asset in the food packaging and labeling
industries. Customers rely on Sappi for high technical, operational
and market expertise; products and services delivered with
consistently high quality and reliability; and, state-of-the-art
and cost-competitive assets and innovative spirit.
Sappi North America is a subsidiary of Sappi Limited (JSE), a
global company headquartered in Johannesburg, South Africa, with more than
13,000 employees and manufacturing operations on three continents
in seven countries and customers in over 100 countries around the
world. Learn more about Sappi at: www.sappi.com/na.
For further information:
John Williams
Corporate Communications
Sappi North America
Office: 207-592-7773
John.Williams@sappi.com
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SOURCE Sappi North America