US firm to invest Rs 1,500 cr in AP Paper

US-based International Paper Company, which had announced the acquisition of 53.5 per cent equity in Andhra Pradesh Paper Mills (APPM) from LN Bangur group last month, is planning to further invest about Rs 1,500 crore in the expansion of the plant located near Rajahmundry.

International Paper, Asia- president Paul Brown today met chief minister Y Kiran Kumar Reddy and informed him about the company’s expansion plans, according to a senior government official.

The US-based paper and packaging major had entered into a Rs 1,400 crore deal with Kolkata-based Bangur family to buy a majority stake in AP Paper Mills.

Started in 1964, APPM grew in size after it acquired a unit of Coastal Papers Limited in 2001, taking its total production capacity to 1,74,000 tpa . With the commissioning of the proposed 60,000 tpa machine, this is expected to reach 2,41,000 tpa, company website stated.Government officials, however, said the meeting of Brown with Reddy was just a courtesy call.