Pearce, currently the chief financial officer (CFO) of Sappi Europe, will be appointed CFO and join the Sappi Limited board as an executive director on 1 July 2014. Current CFO, Binnie, will succeed Ralph Boëttger as CEO on the same date.
“I am very pleased that our robust succession planning process has enabled us to appoint a strong internal candidate. Pearce’s in-depth knowledge of Sappi and his sterling track record will serve the company well on its path towards strong growth and profitability,” said Boëttger.
(READ MORE: Sappi says CEO to step down due to ill-health)
Boëttger announced in January that he would step down at end of June due to ill-health.
The dissolving wood pulp, paper pulp and paper based solutions provider recently reported that its operating profit excluding special items for 2013 amounted to 191 million US dollars, compared to 403 million rand in 2012.
“Operating profit for the year was negatively affected by the once off impact of the dissolving wood pulp conversions at both the Cloquet and Ngodwana pulp mills and the speciality packaging conversion of paper machine two at Alfeld Mill,” Boëttger had said in a statement.
“The expected gradual improvement in the group’s underlying operational performance and reduced capital expenditure will also enable us to generate positive cash flow. This will enable us to lower our net debt levels towards achieving our short term target of two billion US dollars.”