Sri Lankan paper mill targets manufacturing 100 tonnes of paper a day
Sri Lanka’s state managed Valachchenai Paper Mill in the country’s Eastern Province, which has recommenced operations after being stalled for over two decades, reportedly targets the manufacturing of 100 tonnes a day.
“After 26 years we have commenced production on a small scale and we are manufacturing around 20-25 tonnes daily and we hope to go up to 100 tonnes a day with a Rs. 800 million loan,” Chairman of Sri Lanka’s National Paper Company Ltd Wimal Rupasinghe has told Daily News Finance.
He has explained that the company had also applied for a Treasury Guarantee for Rs. 800 million and would be raising the funds through the People’s Bank.
He has noted that the loan would see that the spare parts required for the refurbishment of the former machines and replacements in order to facilitate the increased production up to 100 tonnes per day.
According to Rupasinghe, the increased production would take place within a time frame of three months after the spares are imported and installed in the factory.
India will be the most likely country that we will be importing the machinery but we have to call for tenders, he has further noted.
Meanwhile, the media report has stated that there would be a revival of the Embilipitiya Paper mill as well.
OSL take:
The government of Sri Lanka is along with its development programme is focussing on the revival of local manufacturing businesses that have been stalled during the period of the civil war. This has opened up a host of new business/investment opportunities in Sri Lanka. Foreign businesses/investors could look at forming joint ventures with Sri Lankan entities and develop them and help the expansion of the respective business. Sri Lanka enjoys many trade agreements as well as trade concessions that could help in the manufacturing exports sector.
| Article Code : | VBS/AT/28102020/Z_6 |