Korean SPA Packaging (Pvt.) Ltd. (KSPA) recently signed an agreement with the Board of Investment (BOI) to resume operations at the defunct Embilipitiya Paper Mill, which had discontinued production since 2012.
The project, which is a USD 16 million-investment in its first phase, aims at manufacturing industrial grade papers for the direct and indirect export market by upgrading machinery and infrastructure.
Embilipitiya Paper Mills, belonging to the National Paper Company Limited is the second oldest paper mill in the country. However, operations came to a standstill in 2003 and though it resumed operations in 2011, it had a very short stint as the paper mill was closed again in 2012.
Subsequently, the factory was up for sale, the KSPA decided to resurrect this giant corporation through a Public Private Partnership (PPP) amid a spate of hurdles. Accordingly, the investment agreement was signed recently, with the BOI making it a backward integration, to manufacture paper for the corrugated industry.
Commenting on the project, BOI Chairman Raja Edirisuriya said “It seems that the KSPA is taking the paper industry to the next level with its new project and it is commendable that the industry is in safe hands,”