JK Papers Ltd Monday said it will set up a new manufacturing plant in Gujarat at an investment of Rs 1,500 crore.
A memonrandum of understanding (MoU) has been signed with the Gujarat government to set up the new pant that will have an annual capacity of three lakh tons annually at a cost of Rs 1,500 crore, JK Papers Ltd said in a statement.
The agreement would facilitate the expansion of JK Papers' Songadh unit in Tapi district. The Songadh unit will witness an increase in pulp processing capacity from 60,000 TPA (tonne per annum ) to 1,60,000 TPA and packaging board from 1,00,800 TPA to 3,00,800 TPA.
The plant will focus on producing multi-layer coated board paper and will produce some paper for the first time in India, it said, adding that the full expansion of the plant is expected to be completed by December next year.
JK Paper, during the last fiscal, completed the acquisition of Sirpur Paper which had started production this year taking the capacity of JK Paper to about six lakh tonne per annum (LTPA) from 4.55 LTPA.
Commenting on the setting up of the plant in Gujarat, JK Paper Vice Chairman and MD Harsh Pati Singhania said the state's consistent policy regime and stable government while attracting new investors, has also encouraged existing investors to expand their operations in the state.
The expansion will provide employment to approximately 1,000 more members of the local community, JK Paper said, adding that it would also help benefit close to 10,000 new farmers in the region.
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