The Star (Kenya)

Rai Group officially takes over Pan Paper Mills

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Pan Paper Mills’ joint receiver managers officially handed over its assets to new owner Tarlochan Ltd. This effectivel­y transfers the control of Pan Paper’s assets and subsequent operations to the subsidiary entity of Rai Group. The paper miller has been in receiversh­ip for seven years, after it collapsed due to mismanagem­ent which pushed it into a financial mess. The Rai Group, which has diverse interests in paper milling, agro-forestry, farming and other sectors will consequent­ly invest Sh6 billion in Pan Paper through Tarlochan, over the next five to 10 years to rehabilita­te and revive the factory. The group, which also operates a paper and pulp manufactur­ing plant in Tanzania, has also inherited a work force of nearly 150 employees largely deployed to guard the facility. Group chairman Jaswant Rai said: “Initial assessment­s show most of the critical machinery will require total replacemen­t and upgrades.” The Rai Group of companies purchased revived South Paper Mills plant in Tanzania in 2004 as a demonstrat­ion of its ability to turn around Pan paper. The group has so far invested over $40 million in the Tanzanian operation in addition to the $1million purchase price in 2004.

 ??  ?? Pan Paper mills in Webuye.
Pan Paper mills in Webuye.

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