The Star (Kenya)
Rai Group officially takes over Pan Paper Mills
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.