Asia Pulp & Paper to set up one of world’d largest Pulp & Paper manufacturing unit in Andhra Pradesh with an investment of USD 3.5 billion
Asia Pulp & Paper (APP) today signed a Memorandum of Understanding (MoU) with Andhra Pradesh Economic Development Board (APEDB), to develop a 5 million tonnes per annum, greenfield pulp and paper plant in Prakasam district.
The MoU was signed by J. Krishna Kishore, Chief Executive Officer, Andhra Pradesh Economic Development Board (APEDB) and Suresh Kilam, Executive Director, Asia Pulp & Paper, in the presence of N. Chandrababu Naidu, Chief Minister of Andhra Pradesh.
The Chief Minister of Andhra Pradesh also inaugurated the pylon and laid the foundation stone for the plant at Ramayapatnam, Prakasam District, Andhra Pradesh.
APEDB is responsible for sustainable economic growth through trade, investments, partnerships and collaborations in the state of Andhra Pradesh.
Through this MoU, APP will set up a greenfield pulp and paper manufacturing unit pulp, paper and board, subject to regulatory approvals and other requirements.
Spread over an area of 1,000 hectares (2,471 acres), the total investment amounts to approximately INR 24,000 Crores (USD 3.5 Billion), making it one of the biggest Foreign-Direct Investments (FDI) in the country till date.
The project will be implemented in two phases and is estimated to provide direct employment to 4,000 workers and indirect employment to about 12,000 workers. The project is also expected to provide improved incomes for over 50,000 pulpwood farmers in the region. The Chief Minister has always advocated for development of sustainable sources of enhanced income for farming community and this project will significantly help achieve this goal.
This greenfield project will generate an indirect employment in ancillary services, such as logistics providers for inbound and outbound transport of raw materials and finished products, maintenance providers for the plant, waste paper suppliers, chemical suppliers, converters and distributors and would ensure marked improvement across the value chain of the Indian paper industry.
In addition to Prakasam district, the project will also provide a fillip to surrounding districts such as Nellore, Guntur, Kadapa and Kurnool, through sustained plantation income and improved access to education, infrastructure, transportation, healthcare among others.
Andhra Pradesh was selected due to important considerations such as ease of doing business, support from the State Government, available of quality land parcels and water, proximity to raw materials, and streamlined infrastructure.
Prakasam district has the high density of wood plantation and forms synergies and linkages for the pulp and paper industry. Furthermore, Eucalyptus is extensively grown in this district, providing ready availability of raw material.
N Chandrababu Naidu, Chief Minister of Andhra Pradesh said “APP’s decision to invest in Andhra Pradesh is a clear testament to our Government’s efforts at attracting investments and confirms higher levels of satisfaction and confidence on our business environment, from international investors.”
“This investment would not only create thousands of jobs and opportunities for farmers, but will help in upliftment of society, creation of better infrastructure, increased market linkages and overall development and happiness among the people of Prakasam, Nellore, Srikakulam and other areas in Andhra Pradesh” the Chief Minister added.
J Krishna Kishore said “This investment of USD 3.5 billion makes it one of India's biggest FDI and one of the world's biggest pulp and paper manufacturing plant, putting Prakasam and Andhra Pradesh on the world map. The APEDB is delighted to have facilitated this key investment in Andhra Pradesh and we are proud of this investment both in terms of vision and its quality.”
“The single largest FDI is a symbol of what Andhra Pradesh can achieve when a visionary Chief Minister takes priority of development needs of Andhra Pradesh” Mr. Kishore added.
Suresh Kilam, Executive Director, Asia Pulp &Paper said “As India continues to rapidly develop, demand for pulp and paper products will grow to keep pace. It is vital that we meet this demand in a sustainable and socially responsible way. In developing the Ramayapatnam mill, APP will draw heavily on our forestry expertise in Indonesia to ensure that we continue to meet all our commitments under our Forest Conservation Policy.”
“Andhra Pradesh offers a robust pro-growth, pro-investment ecosystem with good logistical capabilities and access to sustainable pulpwood plantations. We are grateful for the continued assistance from the State Government, in particular, the APEDB, in realising this project,” said Mr Kilam.
The Andhra Pradesh Economic Development Board contributes towards economic growth and employment generation by establishing a globally competitive investment climate in the state that is capable of quickly responding to fast changing global economic and technological scenario.
With its headquarters in Jakarta, Indonesia, APP, a subsidiary of Sinar Mas Group was founded in 1972. The Sinar Mas Group, one of Indonesia’s largest conglomerates, was founded in 1962, with a mission to ‘Give back to the community.