The Hindu Business Line : TNPL to complete pulp mill expansion by March-end

Chennai, Feb. 20 Tamil Nadu Newsprint and Papers Ltd (TNPL) is set to complete its Rs 565-crore pulp mill expansion by March-end, which paves the way for starting work on expanding the paper mill production capacity at a cost of Rs 725 crore.

With the proposed expansion of the paper mill, TNPL would emerge as the largest integrated manufacturer of printing and writing paper at one location, with an annual production capacity of 4 lakh tonnes.

According to TNPL’s Chairman, Mr M.F. Farooqui, the company will be among the largest manufacturers of high quality printing and writing paper with a production capacity of 4 lakh tonnes a year by March 2010.

The ongoing mill development plan to expand pulping capacity is scheduled for completion by March-end. This would expand TNPL’s pulp production capacity to about 800 tonnes a day from the present 500 tonnes. The new pulp mill would use an environment-friendly elemental-chlorine free bleaching process.

With the expanded pulp production in place, the company would launch the mill expansion plan involving the installation of a third paper machine which would add 1,55,000 tonnes of paper production capacity to its present annual production of 2,45,000 tonnes.

On the expansion of the paper production capacity, TNPL’s Deputy Managing Director, Mr A. Velliangiri, said that TNPL is set to emerge a strong player in the sector through economies of scale and in-house pulping capacity that would insulate it from pulp price fluctuations in the international market.

From April, when the expanded pulp capacity would be available, TNPL would not only be free from the increasing cost of imported pulp but would generate revenue through sale of surplus pulp — about 2,000-3,000 tonnes a month. International pulp prices are around $700 (Rs 28,000) a tonne.

The company has also launched a Rs 66-crore project for life cycle extension of the first paper machine. This would be completed by March.

Mr Farooqui, who is also the Tamil Nadu Secretary for Industries, said that the company has also embarked on a backward integration to tie up for pulp wood raw material through its farm forestry programmes and captive plantations. This has far reaching implications in contributing to increasing income for the farmers and bringing under production dry land.

The company is in the process of increasing the availability of pulp wood through farm forestry and captive plantation that targets bringing under pulp wood cultivation over one lakh acres by 2012-13.

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