News

PRESS RELEASE -- Converting Magazine, 3/6/2009 11:57:00 AM

Nampak, Africa’s largest packaging group, is currently rolling out its $600 million expansion project at its corrugated paper mill in Rosslyn, Pretoria.

The project, which involves the construction of a waste-based paper mill, will make the Nampak corrugated business self-sufficient in the production of its own waste-based paper. An increasing number of corrugated players are starting to produce their own waste-based paper. Doing so offers multiple benefits, including improved supply- chain management and lower raw material input costs.

According to Nampak CEO John Bortolan, when the mill is operating at full capacity, it will make a significant contribution to the group’s earnings. “The initial forecasts are very exciting and the company is looking forward to unlocking the value that this opportunity presents, says Bortolan.”

Nampak group executive for corrugated and tissue products Willie Wiese adds that, in addition to self-sufficiency in waste-based paper, the paper machine will give Nampak Corrugated the technological capability to differentiate itself in the market through the production of lightweight paper.

The packaging company is reportedly a large contributor to recycling in South Africa. It is actively involved in the recycling of cans, glass, plastic and paper, and the new mill will further stimulate waste-paper collection and recycling. The recycled paper will be used to produce kraft for boxes.

The mill has the capacity to produce 100,000 sq ft of recycled paper a day.

Wiese says that even with less demand for recycled paper, the new paper machine is still economically feasible, seeing that the mill will mainly be used to produce paper for the company’s own consumption.

http://www.convertingmagazine.com/article/CA6642450.html