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APRIL Group invests $2.3 billion in paperboard factory in Indonesia’s Sumatra -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – A security guard passes a pile of logs in front of a paper and pulp factory in Kerinci in Indonesia’s Riau Province, on April 23, 2008. In managed plantations around the region, seedlings purchased from nearby Pelalawan nursery are planted.

(Corrects headline investment figure from $1.2 billion to $2.3 billion)

JAKARTA (Reuters – Asia Pacific Resources International Ltd, a pulp and papermaker (APRIL Group), announced Tuesday that construction began on Tuesday for a Sumatra paperboard plant worth 33.4 trillion rupiah ($2.33 Billion).

APRIL will operate the factory in Riau, a province that has an annual capacity of 1.2 Million tonnes. The folding box board is 100% recyclable and biodegradable.

The investment is aimed at fulfilling domestic and international demand for environmentally-friendly packaging products, amid a global focus on reducing the use of fossil fuel-based plastic packaging, the company said.

APRIL is Asia’s biggest pulp and paper company. It has been blamed for the annual Indonesian forest fires.

According to an announcement by the Indonesian coordinating ministry of economic affairs, construction of the new facility is expected to be complete in the third quarter 2023. It will also produce 1.06 Million tonnes of Kraft pulp and 600,000.00 tonnes bleached chemical-thermo mechanical pulp, which are the raw materials that go into making paper.

APRIL (a company that Sukanto Tanoto owns in Indonesia) said additional supplies will be sourced entirely from existing supply chains. It also stated it intends to increase its fiber plantation productivity.

APRIL declared that it has a sustainable policy which does not allow for deforestation.

($1 = 14,363.0000 rupiah)

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