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Swazi paper Mills Ltd by EG0uI4

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									Swazi Paper Mills Limited.
    Mill Site – Aerial view
    Proposal
   Opportunity 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 workforce
    ◦ The 98 hectares of fully developed land and site. Zones industrial with
      adequate room for ANY growth & expansions.
                         Swazi Paper Mills Ltd.
                                      Introduction

   Established in Swaziland in the early 1980’s, making recycled tissue and
    recycled 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 1999. 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 making
    Machines 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. 4000 tons/month)
                  Swazi 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 plant
   Free water drawing rights.
   10 megawatt Power supply in place.
   Huge room for expansion
                          Production 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.
                          Kraft 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 annum
   Manufacturers of Test Liner & Fluting
   GSM range from 60 – 250 gsm.

 KPM.1- Trim width 2250 mm at the rewinder.
        Max speed 250 m/min.
        Maximum production 70 TPD
        Average production 1600 tons per month

 KPM.2- Trim width 2440 mm at rewinder.
        Max speed 300 m/min.
        Maximum production 90 TPD
        Average production 2000 tons per month
        Stock Prep - Kraft.

Kraft Stock Preparation – Flow Sheet Diagram
   Kraft Paper Machines
Kraft Paper Machines – Flow Sheet Diagram

     There are 2 x Kraft Paper Machines
Kraft Paper Machines
        KPM 2
Kraft Paper Machines
        KPM 2
Kraft Paper Machines
        KPM 1
Kraft Paper Machines
      KPM 1 & 2
Kraft Paper Machines
   on the Platform
Kraft Stock Prep – KPM2
Kraft Stock Prep – KPM 1
Kraft Stock Prep
Kraft Stock Prep - Pulper
Kraft Stock Prep
Kraft Stock Prep
Kraft - Rewinders
Kraft Paper - Laboratory
Kraft Paper - Laboratory
Kraft Paper - Warehouse
SPM - Effluent Plant
SPM – Effluent Plant
Boilers
Boilers
                      Swazi Paper Mills Ltd.
                            Corrugator Plant

   Langston Corrugator Complete – B and C Flute Facer
   2,200 mm Wide
   120min/m Speed
   Approx.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)
Corrugator Plant
Corrugator Plant
  Drying Section
Corrugator Plant
   Stacking Unit
Corrugator Plant
    Back Stands
                Swazi Paper Mills Ltd.

     Kraft Paper Suppliers to Corrugated industry

1.   Sappi……………………..Dominant Kraft liners
2.   Mondi…………………….Dominant Kraft liners
3.   Nampak…………………..Test Liners & Fluting
4.   Swazi Paper ……….…....Test liner & Fluting
5.   Lothlorien……….………..Dominant Test liner & Fluting
6.   Gayatri Paper (ex.Unicell Paper)….Liners & Fluting
7.   Others…………………….Liners & Fluting
            Swazi Paper Mills Ltd.

Comparative Paper Mill Capacities in the market
             All grades of Paper (source: Pamsa)

 1.   Mondi              45% - 1,180,000t/p.a
 2.   Sappi              38% - 1,180,000t/p.a
 3.   Nampak             7% - 206,000t/p.a
 4.   Swazi Paper Mills  3% -     70,000t/p.a
 5.   Gayatri Paper      3% -     70,000t/p.a
 6.   Lothlorien Paper  1% -      36,000t/p.a
 7.   S.A.Paper Mills    1% -     20,000t/p.a
 8.   Other Mills        3% -     91,000t/p.a
                         Swazi Paper Mills Ltd.

              Procurement of Major Raw Materials
Waste Paper
   20% 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.
Coal
   Sourced locally and South Africa from various vendors delivered to Mill site.


Chemicals
   Ad Hoc agreements with process chemical suppliers.
                    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.
                 Swazi 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.
                   Swazi 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.
                      Swazi 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.
                        Swazi 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.
                      Swazi Paper Mills Ltd.
     Opportunities/Advantages in Purchasing Swazi
                    Paper Mills Limited
   “Ready to Go” plant with huge room for expansion
   Includes 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.
Swazi Paper Mills Ltd.




     Thanking You

 The Sharma Group

								
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