Paper mill opens new line in revival efforts
What you need to know:
- The mill is currently producing about 50-60 tonnes of brown paper from recycled paper used in the packaging industry.
- The management says it expects to spend up to Sh6 billion in the next six years in an ambitious plan that will see Rai Paper become one of Africa’s largest millers.
- The economy of western Kenya region suffered a major blow after the giant company was placed under receivership for almost a decade.
Webuye-based Rai Paper Mill, formerly Pan African Paper mill is burning the midnight oil to overcome challenges in its revival process after it was bought by new investors – Rai Group of Companies – at a cost of Sh900 million.
The paper miller, which has been experiencing occasional slowdowns in operations due to ongoing repairs, has commissioned a second line to boost its operations with an eye on creating extra jobs and meeting local and regional demand.
Industrialisation Cabinet Secretary Adan Mohamed commissioned the second line on Wednesday.
“We expect the second line to create additional 1,000 employment opportunities,” said Mr Mohamed, insisting that the factory is fully operational.
According to Mr Jaswant Rai, the group chairman, most of the run-down machines have been revived and that the second line will offer additional employment opportunities.
“The management and the employees are committed to revival of this plant despite the fact that we found most machines in bad state,” he said.
The company management had earlier admitted that they were faced with challenges in revival of the mill.
“We had some quality problems but we have rectified all of them. The roof sheeting was completely damaged. We are removing asbestos and replacing with metal sheeting,” said Mr Naga Shankar, the factory manager early this year when one line out of four was operational.
Uganda demand
“There has also been a huge demand for our papers from Uganda. We are expanding our production capacity gradually so that we can expand our exports to the neighbouring country,” he said.
The mill is currently producing about 50-60 tonnes of brown paper from recycled paper used in the packaging industry.
“We will resume production of paper from wood upon completion of the other three lines,” said Mr Shankar.
The management says it expects to spend up to Sh6 billion in the next six years in an ambitious plan that will see Rai Paper become one of Africa’s largest millers.
“Pan Paper had been down for over nine years therefore there are a lot of renovations going on and we had serious vandalism of the water pipes, which made the plant to stop after that, we had to replace the roofs but as you can see the mill is already running,” said Mr Shankar.
According to Bungoma Governor Ken Lusaka, the paper mill will unlock the economic potential of the larger western Kenya region including creation of jobs. He assured the necessary support from the county.
The economy of western Kenya region suffered a major blow after the giant company was placed under receivership for almost a decade.
Tarlochan Limited, a subsidiary of Rai Group, took over the company following the signing of sale and purchase agreement between the company and receiver managers.
