JOHANNESBURG - South African paper maker Sappi said on Monday it has begun cost-reduction talks at three of its kraft and fine paper mills in South Africa, which may impact 400 staff.

Sappi said the job cuts at its Tugela, Ngodwana and Enstra mills would not impact its ability to meet customer demand.

Sappi said it has about 3,000 workers in total at the three mills.

The proposed actions are required to successfully meet the challenges of the depressed economic conditions we are experiencing in the domestic and export markets for fine paper and kraft products, the company said in a statement. (Reporting by Agnieszka Flak)

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