Shuttered Swazi Paper Mills expects to reopen in Matsapha, Swaziland, next year, after investing €500M; mill closed in 2009 due to challenges, especially losing tissue contract to Nampak, pins hopes on better pulping technology
June 18, 2014
(Industry Intelligence Inc.)
– Swazi Paper Mills Ltd. in Matsapha, Swaziland, is investing €500 million (US$679.3 million) and expects to restart next year, reported the Swazi Observer on June 16.
Improving its pulping technology should make the mill successful, according to Swaziland Investment Promotion Authority CEO Phumelele Dlamini. It will remain under the ownership of Montigny Investments, she said.
Montigny Investments is now NHR Investments, which was started in 1997 and has grown since then from a small sawmill supplying timber into a multi-faceted organization, according to its website.
The mill closed in 2009 due mostly to the loss of a tissue supply contract to Nampak Ltd., as well as other challenges, the mill’s managing director said at the time, the Swazi Observer reported.
Those challenges included losing its share in the kraft paper market, a shortage of wastepaper, and increased operating expenses after the costs for electricity and coal rose, the managing director said.
The mill’s closure resulted in 223 people losing their jobs. The company promised that the mill’s reopening would create about 450 jobs, reported the Swazi Observer.
The primary source of this article is the Swazi Observer, Mbabane, Swaziland, on June 16, 2014. Click here to view full version of primary source's original article.