Presentation on theme: "Swazi Paper Mills Limited."— Presentation transcript:
1Swazi Paper Mills Limited. Mill Site – Aerial view
2ProposalOpportunity to purchase Swazi Paper Mills Limited, owned and operated by the Sharma Group located in Matsapha in Swaziland.This includes:The entire Kraft Plant.A complete installed Corrugating Plant including a Case Maker.All the service facilities on site i.e. Workshop, Stores, Residential housing for Management on site, Complete Effluent Treatment Plant, etc..All Buildings.Fully trained staff including expatriate skilled workforceThe 98 hectares of fully developed land and site. Zones industrial with adequate room for ANY growth & expansions.
3Swazi Paper Mills Ltd. Introduction IntroductionEstablished in Swaziland in the early 1980’s, making recycled tissue andrecycled Kraft grades of paper.The SPM Tissue division and its market were sold to Nampak Tissue Ltd, in 1998.The Tissue Plant and the Converting Plant are located in a separate building and have been operated by SPM for Nampak Tissue on management basis since The contract has been cancelled and they have now vacated the Premises with their Tissue Plant.The Kraft division is housed in a separate building on its own. There are two paper makingMachines KPM1 & KPM2. The entire Kraft plant was upgraded in to 2005.The total site (approx 98 hectares) is owned by a separate property company called Swajeka Properties (PTY) Ltd.A complete Corrugator line, including a Case Maker, was installed recently to add value to the Kraft Paper. The Corrugator has a designed capacity to handle entire Kraft production on a 3 shifts basis (approx tons/month)
4Swazi Paper Mills Ltd. Salient features of the company and Swaziland Stable political environment in Swaziland.Excellent Infrastructure in Swaziland.Stable technically skilled and cheap workforce.Recruitment of new employees will be on new terms and rates.Complete In-house facilities e.g Stores, Housing, labs,..In-house mechanical workshop.Complete primary Effluent plant.Complete Incoming water treatment plantFree water drawing rights.10 megawatt Power supply in place.Huge room for expansion
5Production Capacity 54,000 tons p.a - KRAFT PLANT (KPM 1 & 2) 48,000 tons p.a - CORRUGATOR PLANT including Case Maker (2 x colour). This is make a complete finished box.* The above is designed capacity.
6Kraft Plant Two Kraft paper machines – KPM 1 & KPM 2 Two Complete Stock Preparation Plants.Total gross capacity of both machines is 54,000 tons per annumManufacturers of Test Liner & FlutingGSM range from 60 – 250 gsm.KPM.1- Trim width 2250 mm at the rewinder.Max speed 250 m/min.Maximum production 70 TPDAverage production 1600 tons per monthKPM.2- Trim width 2440 mm at rewinder.Max speed 300 m/min.Maximum production 90 TPDAverage production 2000 tons per month
28Swazi Paper Mills Ltd. Corrugator Plant Langston Corrugator Complete – B and C Flute Facer2,200 mm Wide120min/m SpeedApprox.100m Long length (Machine Length)Complete Single and Double Wall board.Including Steam, Glue Station, and Compressors.Complete Computerized running system with Order changing unit.Complete Double Stacking Unit at the end. (Marquip Equipment)CAPACITY on 3 x Shift basis = Total 4,000 tons/ month (48,000 tons/ p.a)
33Kraft Paper Suppliers to Corrugated industry Swazi Paper Mills Ltd.Kraft Paper Suppliers to Corrugated industrySappi……………………..Dominant Kraft linersMondi…………………….Dominant Kraft linersNampak…………………..Test Liners & FlutingSwazi Paper ……….…....Test liner & FlutingLothlorien……….………..Dominant Test liner & FlutingGayatri Paper (ex.Unicell Paper)….Liners & FlutingOthers…………………….Liners & Fluting
34Swazi Paper Mills Ltd. Comparative Paper Mill Capacities in the market MondiSappiNampakSwazi Paper MillsGayatri PaperLothlorien PaperS.A.Paper MillsOther MillsComparative Paper Mill Capacities in the marketAll grades of Paper (source: Pamsa)45% - 1,180,000t/p.a38% - 1,180,000t/p.a7% ,000t/p.a3% ,000t/p.a1% ,000t/p.a1% ,000t/p.a3% ,000t/p.a
35Procurement of Major Raw Materials Swazi Paper Mills Ltd.Procurement of Major Raw MaterialsWaste Paper20% of required waste paper ( 600 tons a month) can be easily sourced from established agents/sources within Swaziland which can increased to 1000tons/month.The major source will South Africa (80%). The mill used approximately 5300 tons per month of waste paper at Full Capacity (Kraft at 3500 tons/Month and Tissue at 800tons/Month.There is Potential sources from Mozambique, which one would explore as SPM had an agent who supplied approx. 300tons/month in the past.CoalSourced locally and South Africa from various vendors delivered to Mill site.ChemicalsAd Hoc agreements with process chemical suppliers.
36Environmental Factors: Swazi Paper Mills Ltd.Environmental Factors:SPM has an Environmental Compliance Certificate and a Mitigation Plan, to minimise the quantity of solids being discharged into the river. This plan is available with the mill.Solid waste is disposed to Matsapha Land fill currently.Free water drawing rights of 3000m3/ day from the River and the SEC canal available.Company has a permit for discharging treated water into the river.
37Swazi Paper Mills Ltd. Man Power Swaziland has a full spectrum of Skilled and Unskilled workers available. SPM has a compliment of 225 workers in place currently of whom 10% are expatriates to fill specialised positions.Labour rates are much lower compared to South Africa.It is possible to outsource workforce to labour contractors.
38Swazi Paper Mills Ltd. Transport / Logistics Excellent logistic infrastructure to serve the entire region cheaply and effeciently , specially South Africa.There are over 40 Transport companies in Swaziland including the Unitrans, Imperial Group and many local transporters at attractive rates.SPM has a full rail siding on site.
39Swazi Paper Mills Ltd. Advantages of SPM There are only two Local corrugators, Chuan Yi & Nampak and both were purchasing part of their fluting & liner requirements from SPM. There are no contractual agreements with either of them.A Corrugating Plant was installed at Swazi Paper Mills Limited to capture value addition, making SPM an integrated operation.There is an increasing demand for corrugated boxes in Swaziland due to the AGOA status given to the country, creating a considerable influx of Textile operations exporting to the USA.The market for corrugated Products in Swaziland stands at approximately 40,000 tons per annum.Swaziland has very attractive tax incentives for investors such as low corporate tax and a low Income tax base.
40Swazi Paper Mills Ltd. Advantages of SPM Investors are also entitled to obtain work permits for essential staff, from outside of Swaziland.Cost of making a ton of Paper is very competitive compared to similar other operations in South Africa.Large concrete waste paper storage area on site.Water, Electricity, and Steam supplies infra-structures are on site.Electricty to the site is supplied by a local electricity company S.E.C. The avialable power is 10,000kva, which is sufficient for Future Expansions if needed.4 x Coal fired boilers are installed at the Mill, which gives flexibility to steam supply and boiler maintenance.SPM has a complete in-house Workshop, Stores and Spares division. This includes a 4m Churchill Roll Grinder for cambering rolls. This itself is a major cost saving unit for the Mill.
41Opportunities/Advantages in Purchasing Swazi Paper Mills Limited Swazi Paper Mills Ltd.Opportunities/Advantages in Purchasing Swazi Paper Mills Limited“Ready to Go” plant with huge room for expansionIncludes a complete Kraft Plant which can also supply the local Market and also South Africa.Includes a complete Corrugating Plant which can be integrated with the Paper Mill and add value to the Kraft Paper.New Markets can be explored via Swaziland operations i.e. Mozambique and other neighboring countries affiliated with COMESA/SADC.Increase Market Share in Paper making.It has an existing 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.No additional expenditure in getting started.A fully trained Labour compliment and Skilled workforce existing.Can be BEE empowered in Swaziland.
42Swazi Paper Mills Ltd.Thanking YouThe Sharma Group