The Hindu Business Line : Seshasayee Paper to commission expanded pulp mill by month-end

Chennai, June 9 Seshasayee Paper and Boards Ltd expects to commission the expanded pulp mill capacity by the month end. Following this, the company will start work on expanding its paper production capacity with an additional investment of Rs 300 crore, according to company officials.

The Rs 350-crore pulp mill expansion involves increasing its in-house pulp production capacity to about 440 tonnes a day from 240 tonnes. Trials are on and the expanded capacity will be commissioned by the month end.

Seshasayee Paper now has a 150-tonne-a-day wood pulp mill and a 90-tonne-a-day bagasse pulp mill, and is replacing the wood pulp plant with a 350-tonne modern mill.

The new unit will be elemental chlorine-free. This means it can now start work on expanding its paper production capacity. It plans to set up an additional paper machine with a capacity of 80,000-1,00,000 tonnes a year, officials said.

Strengthening position

The pulp mill expansion strengthens its position by making available its entire requirement of pulp in-house.

The company can stop importing costly pulp, the prices of which have been increasing steeply over the last one year. Industry data shows imported pulp prices now range about $750 a tonne (Rs 31,500) in the international market, up by about $100 since April 2007, and the prices are expected to harden further.

Availability of in-house pulp would significantly insulate Seshasayee Paper from the increasing costs, officials said.

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