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Euro Pulp Company may set up a joint-venture jute-pulp industry

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December 6, 2000 

Dhaka-- (UNB) – Government authorities are actively considering a proposal of a Pakistan-based company for setting up a joint-venture jute-pulp industry in the country using local raw jute.

If everything goes well, the Euro Pulp Company would set up the industry within next six months, a jute ministry official told UNB.

Besides, the company has proposed to import raw jute worth about Tk 40 crore from Bangladesh for its plant in Pakistan.

The planning cell of the Jute Ministry in a meeting recently reviewed the proposals of the Pak Company with Jute secretary AQM Quamrul Huda in the chair.

If the proposed pulp industry is cost-effective, said the official, there would be no problem in marketing the pulp since the use of paper is ever increasing worldwide.

The ministry already has asked the Company of Pakistan to send the project profile detailing its viability, financial aspect, marketability of products and debt-equity ratio.

Necessary instructions have been given to the Bangladesh High Commission in Pakistan to collect the information and communicate with the ministry.

After having all these information the government will examine the proposal, a ministry official told a recent meeting of planning cell that reviewed the initial proposal.

The meeting also reviewed the offer of the same firm to import 40,000 tons of jute for its plant in Pakistan. It viewed that Bangladesh is capable of supplying the amount of jute the company requires.

The ministry decided to supply 60 Kg jute and 60 Kg white jute as asked by the company for trial run of its plant. Bangladesh Jute Association (BJA), a forum of private raw jute exporters, has been requested to take immediate steps in this regard.

Some 2.25 lakh bales of jute cuttings will be required for supplying 40,000 tons of jute. According to Jute Directorate Bangladesh exported 3.21 lakh bales of Jute cuttings in 1996-97, 5.17 lakh bales in 1997-98, 5.13 bales in 1998-99 and 3.67 lakh bales in 1999-2000.

As per present market price of each bale of jute cuttings between Tk 1,700 and Tk 1,900, the FOB (Freight on Board) value of 40,000 tons of jute will be around Tk 39.60 crore.

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