Pan Paper creates 500 jobs as factory roars back to life

Reopening of former Pan Paper Mills, now renamed Rai Paper, has created 500 jobs for locals with an additional 1,500 expected when the factory is fully operational.

Speaking at Pan Paper Stadium after commissioning the first production line Thursday, President Uhuru Kenyatta said revival of the factory means that Webuye town will once again return to its glory days.

“It was a town that for many Kenyans represented Kenya’s ambition and progress. I am proud that the Jubilee administration has played this part in ensuring that Webuye rises again and that its people have access to more decent jobs,” said Mr Kenyatta.

The first production line will produce 56,000 tonnes of paper per year as the machines that had stalled for the last six years became operational on Thursday.

Rai Group of Companies, which purchased the Webuye-based factory plant in April, said the line will produce 150 tonnes a day in the next three months.
Group chairman Jaswant Rai said the second line will start operations by June next year.

“As we start operations, we have enough raw material and this will enable us to achieve a total of 56,000 tonnes a year on the first line,” said Mr Rai in an interview with the Business Daily.

He noted that it will take longer to bring the remaining two lines into operation owing to the heavy repairs needed.

READ: Billionaire Rai family buys PanPaper for Sh900m

When the plant was handed over to the investor over six months ago, the plan was to reopen it in August. The first trials were conducted last week during a tour by Industrialisation secretary Adan Mohamed to inspect progress.

The investor intends to pump Sh6 billion over the next five years to rehabilitate the machines to ensure that the plant is fully operational.

By the time Pan Paper closed its doors its debt to Kenya Power alone had accrued to Sh150 million in 2010. 

The firm was sold at Sh900 million after long-term lenders agreed on the bid from Rai Group.