JK Paper Ltd announced a delay in the commissioning of its new Bleached Chemi-Thermomechanical Pulp (BCTMP) plant at its Fort Songadh mill, Gujarat. Originally expected for earlier, the startup is now scheduled for the fourth quarter of fiscal year 2025-26 due to challenges around physical commissioning logistics.
Project Overview and Capacity
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The BCTMP plant has a capacity of 400 air-dry metric tons per day (ADMT/d) and will produce high-quality pulp for lightweight coated boards.
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This new line utilizes Valmet’s advanced high-temperature BCTMP technology for energy-efficient, superior pulp quality.
Reason for Delay
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The commissioning delay is attributed to travel restrictions impacting the presence of specialized technical experts needed for physical commissioning.
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Virtual commissioning was attempted but differed significantly from onsite commissioning, necessitating rescheduling.
Strategic Importance
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The plant expansion is critical for JK Paper’s efforts to meet growing market demand efficiently and reduce dependency on external pulp sources.
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It aligns with JK Paper’s goal to enhance production capabilities and energy efficiency.
Financial and Operational Context
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The investment in the plant forms part of a larger INR 650 crore capex approved by the company’s board.
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The project is financed through a mix of internal accruals and borrowings.
Outlook and Future Plans
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JK Paper aims for full stabilization of the plant post-commissioning to strengthen its competitive position.
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Further capacity expansions, including a chemical pulp mill as phase 2, are being evaluated.
Sources: JK Paper Annual Report, The Pulp and Paper Times, Valmet Press Release