Revitalizing Bangladesh’s Paper Industry: A $3 Billion Revamp
Bangladesh’s paper industry is poised for a major turnaround with the Karnaphuli Paper Mill (KPM) set to undergo a massive $3 billion transformation. This ambitious project aims to not only restore the facility to its former glory but also establish six new plants within the next five years.
A New Era for KPM
The Bangladesh Chemical Industries Corporation (BCIC), which oversees KPM, has submitted an investment proposal to the Ministry of Industry, outlining plans for an integrated paper mill, afforestation projects, and a paper-based chemical plant. Additionally, the project includes factories for various basic chemicals and synthetic polyester fibre.
From Decline to Revival
KPM’s production capacity has been in decline over the past 15 years, plagued by outdated machinery, a lack of skilled manpower, mismanagement, and internal issues. However, with the appointment of a new managing director, Mohammad Shahid Ullah, an expert in bamboo and pulpwood, the mill is now on the path to recovery.
A Call to Action
KPM employees, who have seen their numbers dwindle from 5,000 to just 260 over the past decade, have been vocal in their demand for the mill’s revival under new management. They are eager to put an end to the syndicate linked to the previous administration and restore the mill to its former glory.
Challenges Ahead
Currently, KPM relies heavily on imported pulp, which has driven up production costs. However, under Shahid Ullah’s leadership, a seven-phase tender has been introduced to source foreign pulp more affordably, reducing costs from BDT105,000 per tonne to BDT85,000 per tonne.
A Brighter Future
The new revival project aims to produce its own raw materials, reducing production costs and creating a new revenue stream by selling these materials to private paper mills. With the necessary funds in place, the factory is expected to produce 1 lakh tonnes of paper annually, making KPM self-sufficient and profitable once again.
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