Sunday, June 16, 2024
BusinessPulp, paper factory to be set up with USD 60 mln

Pulp, paper factory to be set up with USD 60 mln

A newly-established joint venture Purewood Pulp, Paper and Packaging PLC is said to have invested USD 60 million to set up a manufacturing plant on a 68,000sqm plot located inside the Eastern Industry Zone, the first Chinese built and owned industrial park in the country.

Mahir Ismail, general manager of Ismail Ture Business PLC, the local partner of the joint venture with 45 percent share, told The Reporter that the new pulp factory will have an installed capacity of manufacturing 10,000 tons of toilet paper, 15,000 tons of Kraft paper and 7,500 tons of cartons per year.  According to Mahir, the pulp, paper and packaging project is said to utilize recycled papers, bagasse (sugar cane residue) and pulp as input raw materials. The ultimate target of the project will be directed towards manufacturing jumbo roll pulp and papers with a possible expansion to printing papers.

Out of the 68,000sqm plot, currently, the 38,000sqm has been acquired from the Eastern Industry Zone management with a land lease agreement worth 15 million birr, Mahir said. The rest of the land is expected to be handed over once the Industry Zone finalizes the expansion project it has been undertaking.

Planned to be operational in 11 months’ time, the pulp and paper manufacturer is expected to export 35 to 40 percent of the total production. The Chinese Neo Glory is the majority shareholder of the pulp and paper company that would employ state-of-the-art the technology in the field.

Ismail Ture Business (ITB) has been in the import and export, wholesale and distribution, and cement manufacturing sector since 1976. Until consolidated in 2013 to form ITB, Ismail Ahmed Ture and Sara Ismail Ahmed were the two sister companies engaged in running the family line of business for a while. ITB solely imports and distributes products of major Chinese companies such as Excellent, Yong Fa, Safewell (maker of fire proof safe boxes and filing cabinets), Wipro brands, Kama diesel generators and the like.

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In addition to the pulp and paper factory, IBT is contemplating to set up a recycling plant via its sister company, ECOTOPIA Recycling Industries PLC. The plant is said to recycle waste tires and plastics and to produce diesel that can be utilized as furnace oil, carbon black, steel wire and gas fuel. Accordingly, the 180 million birr project is nearing completion of its construction phase. At the launch of operations, the project will contribute by substituting some three percent of the country’s fuel consumption.

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