SM2442

KRAFT TESTLINER PAPER MILL

INVESTMENT OPPORTUNITY

(Full commercial details on registration of interest)

Mill Site – Aerial view


 Proposal 

Opportunity to purchase the assets, Kraft Paper Machinery and Plant of a mill located in an environment with signficant financial advantages to the investor. 

  • Excellent return on investment
  • Maximum 10% company tax on earnings for 10 years
  • Freedom to repartiate  funds at any time
  • Central to many regional markets
  • Ready access to low cost raw materials
  • Governmental support

This investment includes:

  • The entire Kraft Plant.
  • All the service facilities on site are available Workshop and Stores. Residential housing for Management on site which can be rented, Complete Effluent Treatment Plant, Access to a waste water pipeline from the site to a newly constructed Effluent Treatment Plant .
  • Buildings.: To Rent the Main Kraft Buildings sufficient for the Kraft Paper Mill operations and services, compressed air and internal water treatment. Additional land area as required on rental lease basis. Suggested that workshop and stores to be moved next to the Kraft paper machines.
  • Fully trained local staff  and workforce, paper making, skilled Mechanical fitters , Electrical technicians, Instrument  technicians all available . Previously experienced  expatriates are also available .
  • Sufficient land for Kraft operations will be subdivided for current and future expansions.
  • Common site security provided on cost share basis
  • Common site weighbridge available.
  • Rates on area occupied.

Salient features of the company and country of location

  • Stable political environment.
  • Excellent Infrastructure in country.
  • Stable technically skilled and cheap workforce.
  • Recruitment of new employees will be on new terms and lower rates.
  • Complete In-house facilities e.g Stores, Housing, labs,..
  • In-house mechanical workshop.
  • Complete primary Effluent plant.
  • Complete Incoming water treatment plant
  • Free water drawing rights.
  • 10 megawatt Power supply in place from SEC and the grid.
  • Huge room for expansion
  • New waste water pipe line for effluent discharge
  • On application corporate tax at 10% flat for ten years.

Production Capacity

  • 45,000 tons p.a  - KRAFT PLANT (KPM 1 & 2)
  • The above is design capacity depends upon gramage of Kraft paper being processed at what width.

Kraft  Plants

  • Two Kraft paper machines – KPM 1 & KPM 2
  • Two Complete Stock Preparation Plants.
  • Total gross capacity of both machines is 54,000 tons per annum
  • Manufacturers of Test Liner & Fluting
  • GSM range from  60 – 250 gsm.
    • KPM.1-  Trim width 2250 mm at the rewinder. 
    •               Max speed 250 m/min.
    •               Maximum production 70 TPD 
    •               Average production 1800 tons per month
    • KPM.2-  Trim width 2440 mm at rewinder.
    •               Max speed 300 m/min.
    •               Maximum production 90 TPD
    •               Average production 3000 tons per month

Stock Prep - Kraft.

Kraft Paper Machines x 2

Flow Sheet Diagram

KPM 2


KPM 1


KPM 1 & 2

Paper Machines
on the Platform

Kraft Stock Prep – KPM2

Kraft Stock Prep – KPM 1

Kraft Stock Prep

Pulper

Kraft - Rewinders

Laboratory

Warehouse

Effluent Plant

Environmental Factors:

  • Site has an Environmental Compliance Certificate and a Mitigation Plan, to minimize the quantity of solids being discharged. This plan is available with the mill.
  • Solid waste is disposed to Land fill currently.
  • Free water drawing rights of 3000m3/ day available.
  • Waste water to the new waste water pipe line at a reasonable treatment cost

Opportunities/Advantages in Purchasing Paper Making Asets.

  • “Ready to Go” plant with huge room for expansion start up can be achieved in a very short time period. The refurbishment and the new electrical and other plant including installation will only take eight months from contract being awarded to contractor. This includes automation for better operation and manpower savings.
  • Includes a complete Kraft Plant which can also supply the local and regional  and surrounding export markets.
  • New Markets can be explored via regional operations  affiliated with COMESA/SADC.
  • Increase Market Share in Paper making.
  • Previous mills market share and portfolio of Customers and new Potential customers. We have the database for the complete Market.
  • Mill can also produce Virgin grade Liners using unbleached pulp.
  • A fully trained Labour compliment and Skilled workforce existing.
  • Can be BEE empowered.

NOTE:  The Major plant is in place, however:-

  • Plant has to be refurbished / New ancillary plant needed
  • Existing plant refurbishment
  • Transformers in place
  • HT/ LV/ MCC’S --  New
  • Cabling  – New
  • Various motors used / New
  • AC/Drives motors for paper machines.
  • Electrical controls 
  • Instrumentation upgrade /some new
  • Wood fired boiler – used /New
  • Vacuum system – Refurbished
  • Air compressor system – Refurbished
  • Effluent / waste water reticulation – Refurbishment
  • Steam reticulation – Refurbishment
  • Finishing rewinders,  New AC Drives and controls, Mechanical  Refurbishment.

The mill is in the commencement stages of refurbishment including the design of a secondary top layer for KM2 to enable testliner type papers