India's Subburaj Papers Moving into the Newsprint Market

Dec. 9, 2009 - India's Subburaj Papers Pvt Ltd., a 350 tonne per day printing and writing paper mill, said it is expanding its product range to include newsprint and copier paper, according to a news article by The Hindu Business Line.

The mill, located in Ambasamudram, Tirunelveli, in south Tamil Nadu, India, started up in February of this year. The recycled paper mill imports waste paper from Europe and North America as a raw material, apart from a small quantity of virgin pulp.

Arun K. Subbiah, Director and CEO, Subburaj Group, said the company's decision to produce newsprint is the result of the favorable price trend in the newsprint market, coupled with substantial cuts in capacity by international producers.

The company plans to split production at the mill, with 40 percent of its capacity as newsprint and 60 percent as printing and writing paper.

Subburaj Papers is already producing hi-bright newsprint, a high-end grade the company says can compete with imported grades of newsprint. In addition, it has already made deals with leading newspapers in Tamil Nadu, Karnataka and Kerala, the news report said.

Currently, the mill exports printing and writing paper to Africa and Sri Lanka. By the end of December, the company expects to export newsprint to these markets.

Subburaj Papers imports about 10,000 tonnes of waste paper every month and about 2,000 tonnes of pulp. In six months the imports will grow to about 16,000 tonnes through the Tuticorin port.

In the next two years, the company plans to add a multilayered, duplex board production line at the mill, Subbiah said.

SOURCE: The Hindu Business Line

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