The project, which is expected to commence commercial production in April 2026, will increase paper production by 12,500 TPA, pulp production by 35,000 TPA and black liquor dry solids firing capacity from 950 TPD to 1,500 TPD at Erode unit of Seshasayee Paper and Boards Limited.
Sep 26, 2024
Seshasayee Paper and Boards Limited (SPB) has approved an investment worth INR 405 crore to increase the production capacities of paper and pulp by 20 percent at its Erode unit. The Board of Directors of SPB gave their nod to the Mill Development Plan IV, Phase I (MDP-IV-PI), subject to the approval of the Ministry of Environment, Forest and Climate Change (MoEF&CC).
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The project, which is expected to commence commercial production in April 2026, will increase paper production by 12,500 TPA, pulp production by 35,000 TPA and black liquor dry solids firing capacity from 950 TPD to 1,500 TPD.
The plan will increase the power generation capacity at the unit from 40 MW to 51 MW. It will further improve the environmental performance of the mill, as well as enhance its augmentation of green power by 100 percent.
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Seshasayee Paper and Board currently consumes costlier imported deinked pulp/imported pulp in its Tirunelveli unit. The surplus in-house pulp from Erode unit will be transferred to Tirunelveli unit to replace the costlier pulp, thereby improving the EBIDTA margins of the current operations.
The additional paper production will help the company in increasing its revenue from operations.
