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Prominent paper company aims to replace letters of credit with new international transaction management services
HONG KONG, October 15, 2001 - Sappi, the world's leading producer of coated woodfree paper, has begun using TradeCard, a U.S.-based company that automates the financial portion of trade transactions and provides an online alternative to costly letters of credit among its product offerings. Sappi has already used these services for trade transactions with several buyers in Hong Kong and Taiwan in lieu of letters of credit. After initial use, the company has realized immediate process efficiency and cost saving benefits. Further, Sappi, now aims to increase the number of buyers with whom they conduct trade transactions using TradeCard's web-based service.
Henri Kirsten, Financial Director of Sappi Trading, said: "Sappi had researched a number of Internet-based options designed to save time and money by providing alternatives to letters of credit. TradeCard currently best suits our needs. We gave it a try and found that TradeCard made the trade transaction process faster, more efficient, and less expensive. We look forward to more of our buyers becoming TradeCard members."
Once buyers and sellers become approved TradeCard members, they can then conduct their financial portion of their trade transactions through TradeCard's patented financial supply chain platform. The financial supply chain involves managing the flow of necessary data relating to settlement beginning with the purchase order all the way to payment. This system provides all approved trading parties and their service providers complete online visibility into their transaction, accurate 24/7 data monitoring, e-mail reminders for tasks to be completed, an assurance of payment to sellers upon correct fulfillment of an order, access to export financing facilities, and a patented data compliance engine with discrepancy notification. And unlike letters of credit where each discrepancy results in a fee, TradeCard members can negotiate discrepancies online at no additional cost.
"Sappi recognizes the benefits that TradeCard can bring," said TradeCard Chairman and CEO Kurt Cavano. "They are processing transactions with key buyers and are seeing the results. And the more buyers that become members, the more all parties to the transaction save in time and costs."
About TradeCard
TradeCard is a financial supply chain service provider. TradeCard's secure transaction infrastructure greatly reduces the inefficiencies and uncertainties found in traditional domestic and cross-border trade transaction processes. By streamlining and enhancing the steps necessary for purchase order approvals, payment decisions and settlement, TradeCard provides a cost-effective, practical and patented service for financial supply chain management.
TradeCard, Inc. is headquartered in New York City with offices in San Francisco, Seattle, Chicago, Hong Kong, Taipei, Seoul, Tokyo and London. TradeCard can be found on the World Wide Web at http://www.tradecard.com
About Sappi
Sappi leads the fast growing coated woodfree paper market. Coated woodfree paper is used in high quality publications such as annual reports, catalogues, brochures and magazines. It has a 15% share of the world market and has leading market shares in North America, Europe and Africa, selling nearly a quarter of the coated woodfree paper in the western world.
A high level of pulp integration protects Sappi from pulp price volatility. It sells almost as much pulp as it buys and in particular is the largest, (15% world market share) lowest-cost producer of dissolving pulp used typically in the manufacture of viscose textiles.
Sappi has manufacturing operations on three continents, in eight countries and customers in more than 100 countries. Sappi can be found on the World Wide Web at www.sappi.com.
