Sirpur Paper Mills stopped production due to the Covid-19 crisis

Sirpur Paper Mills stopped production due to the Covid-19 crisis

New Delhi | 26th August 2020 | The Pulp and Paper Times:

The mounting pressure of weak demand in the paper sector has led Sirpur Paper Mill to shut down its production facility temporarily.

Sirpur Paper Mills Ltd, a subsidiary of "the company, has temporarily shut down its production operations at its manufacturing facility at Sirpur-Kaghaznagar in Telangana in view of the current market condition consequent to Covid-19-pandemic situation", JK Paper Ltd said in a regulatory filing.

“Besides Covid-19 crisis has led to an uncertain atmosphere which will impact the spending behaviour and habits of the consumer in the near future. Decisions on discretionary purchases will be postponed while trends such as work-from-home will shift consumption from away-from-home to at-home items,” Said Mr. Harsh Pati Singhania, Vice Chairman & Managing Director of JK Paper Ltd. to The Pulp and Paper Times in an Interview.

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Before the COVID-19 lockdown, Sirpur Paper Mills Ltd. (SPML) had ramped up its production and achieved highest production of 286 tons from the Pulp Mill (against a rated capacity of 323 tpd) and 320 tons (rated capacity of 400 tpd) from the Paper Machines. In the month of March, 2020 (up to 21st March, before COVID-19 lockdown) the Company achieved about 70% of the capacity based on actual number of working days. Progress is also being made on improving the quality parameters of the final products to meet customer requirements and expectations.

Mr. Singhania further said, that Except for Food, Pharma packaging grades and certain hygiene products, most Paper grades will see only a gradual demand buildup and therefore may witness price pressure in the near future. In certain segments, e.g. recycled paper, raw material price has spiked during lockdown due to challenges in waste paper collection and import consignments stuck at ports. However, this should be a temporary trend.

 Sirpur Paper Mills, with a capacity of about 1.4 lac TPA, which JK Paper acquired through the IBC route, commenced production. After having undertaken significant refurbishments at the plant in the last year and achieved up to 70% of the operative capacity.

 The Company comprises state-of-the-art integrated manufacturing facilities in three locations, helping moderate logistics cost, deliver products with speed and service a pan-Indian customer base.

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