International Paper has set up a Rs 100-crore size sheeter unit at Rajahmundry facility of Andhra Pradesh Paper Mills Ltd.

This will take the sheeting capacity of AP Paper up from 25,000 tonnes a year to almost four times to 90,000 tonnes a year.

The sheeting line has been installed to convert paper reels into A4, A3 and fullscape size products. This facility has capability to wrap ream and facilitate carton packaging. It has capacity to convert 265 tonnes per day. Built over 13 months, this unit will reach its full capacity by the end of the year.

The $28-billion revenue US-based paper major International Paper has 75 per cent stake in AP Paper Mills. It has, thus, far invested close to $500 million (about Rs 3,300 crore) plus additional debt in the company. APPM has two manufacturing units at Rajahmundry and Kadiam.

William Michael Amick, Jr, President, IP India and Chairman, APPM, said: “The new investment reiterates IP’s commitment to India. The advanced sheeter unit and IP’s global leadership will allow us to serve the growing copier market. We continue to be optimistic of the potential which India offers.”

Addressing a press conference, he said the company, which has majority stake in AP Paper Mills, at this time had no plans to de-list. “India is a place to be in the long term, where patience is required,” he said.

Rampraveen Swaminathan, MD and CEO, said: “It has been two years since the acquisition of APPM and IP adds to the company capabilities. In the short-term, there could be some correction in the overall market demand. But the long-term holds immense scope for growth.”

rishikumar.vundi@thehindu.co.in

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