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APRIL Group invests $2.2b to expand pulp and paper business
The pulp and paper giant is investing US$2.2 billion to expand its business into paperboard packaging at its Riau factory operated by PT RAPP, it announced on Thursday.
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The water treatment facility at the factory of APRIL Group’s operational arm, PT Riau Andalan Pulp and Paper (RAPP), in Pangkalan Kerinci, Riau province, is seen in this undated photograph from the company’s website.
(aprilasia.com/-)
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PRIL Group, a global leader in fiber, pulp and paper production, has announced plans to expand its business into paperboard packaging with a total investment of Rp 33.4 trillion (US$2.2 billion).
Sihol Aritonang, managing director of APRIL Group's operating arm PT Riau Andalan Pulp and Paper (RAPP), said the expansion plan was in line with the government's push to develop downstream industries as well as the global demand for pulp and paper, which was growing at an annual rate of 2 percent.
“Construction is still ongoing [for the new facility]. We hope it will be operational by the fourth quarter of this year,” Sihol told reporters in Jakarta on Thursday.
He said that while production in the company’s primary product line of printing paper was still “running at full capacity”, APRIL planned to venture into the promising wrapping and packaging segment, as it was forecast to lead the global pulp and paper market.
Read also: Analysis: RI adamant on upholding downstream policy despite IMF criticism
A study by the Institute for Economic and Social Research at the University of Indonesia business school (LPEM FEB UI) suggests that APRIL's operations have contributed significantly to economic growth and catalyzed post-pandemic economic recovery in the country, primarily in Riau province.
Uka Wikarya, who heads the regional economic and public resource policy study group at LPEM FEB UI, said the forestry sector played a key role in spurring growth in gross domestic product (GDP). In terms of the national economy, he said APRIL contributed Rp 484 trillion to GDP between 2016 and 2022.
