The Valachchenai Paper Mill which has stalled operations for 26 years and resumed recently, has targeted 100 tonnes a day in the near future.
“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 the National Paper Company Ltd (successors to the National Paper Corporation) Wimal Rupasinghe told Daily News Finance.
He 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 said that the loan would see that the spare parts for refurbishment of the former machines would be replaced which would facilitate the increased production up to 100 tonnes per day.
He said that 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 said.
There are around 80 employees at the Valachchenai factory and we would increase the staff up to 400 when we reach the 100 –tonnes daily production, he said, adding that a comprehensive dealer network would also be appointed at that time.
Meanwhile, there would be the revival of the Embilipitiya Paper mill as well , which when goes into full production, will produce an additional 60 tonnes a day. However, there are some legal issues and operational issues which have to be sorted out prior to the commencement of the production operations. These include refurbishment of wiring and electrical issues and also water and electricity issues, he said.
The first batch of 30 tonnes of paper produced at the recently reopened Valachchenai Paper Mill under the brand name ‘Sripath’ was released to the market in Colombo on June 30.
Minister of Industries Wimal Weerawansa got a fresh approval from the Cabinet in February 2020 to cancel the sale of the assets of the factory which was mooted during the previous regime after the LTTE bombed the factory in 1994 and re-start production.
This was done with the help of the Sri Lanka Army and Navy and other supporting staff and the factory was re-opened. NPC Chairman Wimal Rupasinghe said that with the full commissioning of both the Valachchenai and Embilipitiya factories, Sri Lanka would be able to save Rs. 1 billion annually from the paper import bill.
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