January 05, 2020 (MLN): In view of rising demand for polypropylene bags produced by the Company, the Board of Directors of Cherat Packaging Limited in its meeting held on January 5, 2021, has decided to enhance its production capacity by installing its fourth Polypropylene line for woven bags.
It is pertinent to mention that Woven Polypropylene is a type of thermoplastic resin material that is woven in two directions to form a light but heavy-duty material at the same time. It is largely used in storing and transporting commodities in agriculture, fertilizer, and chemical industries because it is lightweight, durable and reusable, easy to produce, non-stained, non-toxic and waterproof. Unlike regular plastic bags, it has better burst strength.
According to the notice issued to PSX, the Company has once again decided to acquire the plant from Windmoller & Holscher, which is the leading supplier of such equipment. The plant, which is the fastest and the most efficient equipment of its kind, will have a production capacity of approximately 65 million bags per annum. It will be installed at the existing site in Gadoon Amazai, Khyber Pakhtunkhwa Province.
In addition to this, the plant will take the total production capacity of the Polypropylene Division to 260 million bags per annum. The total cost of the project is approximately Rs. 1.10 billion and it is expected to be commissioned by December 31, 2021. The project will principally be financed through a long-term loan.
