Cherat Packaging Limited (CPL), a leading producer of cement bags, has increased its annual manufacturing capacity by 50 million bags through installing the world's first ever European-made polyprophylene plant. Acquired from M/s BSW Windmoller and Holscher, the third line of polyprophylene (PP) bags manufacturing plant has been "successfully" installed and commissioned at CPL's Gadoon Amazai factory of Khyber Pakhtunkhwa.
"It is the most advanced and fastest plant in the world and CPL has the privilege to be the first company in the world to have it," Amer Faruque, company chief executive, said in a stock filing. The expansion, he said, would enhance the company's yearly production capacity from 145 million to 195 million PP bags. "Another 50 million bag capacity will be added in the second phase of expansion in 2017," Amer added.
He said by virtue of this expansion CPL would be able to better allocate its fixed costs and capitalise on its strong relationship with the existing customer base. "Increasing export empty PP bags and manufacturing of PP bags for packing other products like sugar, chemicals, rice, fertiliser and other similar products shall further improve the position of the company," the official said. Umer expects that the new manufacturing facility would reflect positively on the company's sale volumes going forward.