Embilipitiya paper mill resumes operations

by L.S. Ananda WEDAARACHCHI

The Embilipitiya Paper mill resumed operations last week under the National Industrial Re-awakening Program of the Government, said State Resources and Enterprise Development Ministry Secretary Dr. W.W. Gamage.

He said that Perth Engineering and Maintenance (WA) (Pvt).Ltd of Australia which offered the highest capital investment and the best technology at the international bidding in February 2011 has been granted the management contract of the paper mill.

Around 250 metric tons of paper will be produced daily. Three-hundred-and fifty direct employment opportunities will be created under the new management, the secretary said.

The Embilipitiya paper mill was first set up in 1978. The mill was closed in 2003 during the UNP regime and factory assets worth millions of rupees were sold to settle the workers’ dues.

The Paper Mill resumed operations in 2008 with a capital investment of Rs. 35 million as envisioned in the Mahinda Chinthana to make state resources productive.

However, due to the poor quality of the machinery and the high cost of re-investing in machinery the plant was compelled to close again in 2010. Despite its closure, the Government continued to pay staff salaries amounting to Rs. 4.3 million monthly until last November.

Over Rs. 350 million was paid as compensation to 171 former employees at a ceremony at the Sri Lanka Foundation Institute, last week.