The majority of the mills production would be for export to Europe and Asia.
A jointly owned project company, Pulp United Pty, will research the feasibility of building the eucalyptus-based mill at Richards Bay in South Africa.
The output will be labelled as a Sdra Cell product and all sales will be handled by the company.
The project will cost in the region of 155m-233m (RSAr2bn-3bn), and will have a capacity of 300,000 tonnes per annum.
Sdra Cell president Leif Brodn said there had been a fibre flow from the South African region for some 15 years, and the combination of competitive wood and energy costs made the region a viable option.
Have your say in the Printweek Poll
Related stories
Latest comments
"I have worked in quite a few print sectors, including Walstead in the past. It is all tough, but most will not be surprised that the packaging sector is still growing. However, the service in the..."
""longer run litho work had “now returned to the Far East”?
Is this happening a lot?"
"Thanks Jo, look forward to reading it in due course. Administrators generally argue that they need to act with lightning speed in order to protect the business/jobs, thereby overlooking the fact that..."
Up next...
Revenue up to £3.2m, profits quadupled
Footprint picks up pace of acquisition strategy with Swindon’s C3
Controversy emerges over relationship with potential suitor
National World shares soar on takeover approach
24/7 access for customers
Bakergoodchild launches new SaaS platform
Strategic move for global growth