Pangkalan Kerinci, Riau, Indonesia (News release) - PT Riau Andalan Paperboard International, part of APRIL Group, has initiated the commissioning of its new IDR 33.4 trillion (US$ 2.3 billion) paperboard manufacturing plant, bringing it a step closer to full-scale commercial production, which is expected later this year.
The new paperboard facility continues APRIL Group's downstream diversification into high value-add products as a source of sustainable business growth, leveraging the company's advantage as a fully integrated producer of fibre-based consumer products. The facility's fibre supply will largely come from productivity increases from existing plantations and will comply with APRIL's sustainability policy and align with its APRIL2030 commitments and targets.
The new facility will be capable of producing 1.2 million tons of recyclable and biodegradable paperboard annually, to be marketed under the BoardOneTM and SilverPak brands. PT Riau Andalan Paperboard International contributes to Indonesia's shift to a lower-carbon economy through the production of bio-based packaging materials to meet rising domestic and international demand for non-fossil fuel-based packaging products. It will create more than 600 new jobs when fully operational.
Demand for paperboard in Asia is set to increase by more than 3% per year to 2030, according to independent consultants AFRY, as consumer brands seek more sustainable alternatives to plastic packaging and the evolution of circular manufacturing models.
BoardOneTM will market and distribute a range of premium paperboard products, including folding boxboard, cup stock, and art board (C2S) for general packaging, food service packaging and graphic applications. These products are manufactured using high-quality fibre sourced from APRIL's sustainably managed plantations, which are certified under the Programme for the Endorsement of Forest Certification (PEFC) Sustainable Forest Management standards.
Between now and the commencement of full-scale production, the company will continue fine-tuning the state-of-the-art facility to consistently meet global product quality and health and safety standards as well as production sustainability criteria.
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