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Sappi, SCA Expand Sourcing Cooperation

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Sappi Fine Paper Europe (Sappi) and SCA Tissue Europe reported this week that, following the successful joint sourcing of pulp that began in May 2010, they will now jointly source chemicals, technical goods, and other major spend categories.

The two companies noted that supply markets "are changing with increasing rates of speed as is the supplier consolidation process. High growth rates in China, increasing energy costs, and exchange rate fluctuations have a significant impact on price and availability of products and services."

Approaching other major spend categories as part of the sourcing cooperation will enable both companies to cement strategic supplier partnerships by embarking on specific programs to reduce cost and working capital, improve logistics, and environmental performance and to drive innovation, Sappi noted.


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