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A minimum of 300 ton will be added to the capacity of packaging paper of Iran in 2017

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CEO of Chemical and Cellulose Industries of the Ministry of Industry, Mining, and Trade said:

A minimum of 300 ton will be added to the capacity of packaging paper of Iran in 2017

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CEO of Chemical and Cellulose Industries of the Ministry of Industry, Mining, and Trade pointed that there has been a 21% growth in production of liner and floating papers in 2016 and also announced that 300 ton will be added to the capacity of packaging paper of Iran in the current year.
Wednesday, June 14, 2017 10:00:00 AM

According to a report from the Ministry of Industry, Mining, and Trade, Parvin Nabati said that in the recent years especially after JCPOA there has been noticeable investments in the field of liner and floating papers in the country. He added: in 2016, 300 ton capacity has been created in the country, in addition to that in the current year a minimum of 300 ton new capacity will be added with the latest technology of the world in the field of packaging papers.

He said that the consumption rate of packaging papers and cartons in the world is a rising one and he added: Production and consumption of packaging  carton and paper in 2000 was 151 million ton which in 2015 raised to 230 million ton.

CEO of Chemical and Cellulose Industries of the Ministry of Industry, Mining, and Trade pointed that there has been a 21% growth in production of liner and floating papers in 2016 according to the statistics from the Ministry of Industry, Mining, and Trade and expressed: the imported amount of this product in this time has met a 40% recline importantly because of utilizing the new production units, and with the start of the new plans in the current year, the production will also be better.

He said more than 90 percent of the papers produced in the wrapping paper unit was waste paper.

 VAT reform bill to protect domestic producers

He said one of the problems in the field of carton and paper is in the field of print, writing, and newspaper papers and added: Unfortunately, because of some decisions made, the price of the finished product does not compete with imported paper. One of the main reasons is the exemption of import paper for printing, writing and foreign newspapers from paying a value added tax of 9%. This is despite the fact that domestic producers should pay that amount of money for raw materials including bagasse, wood, chemicals and energy. This creates an unequal competition between domestic producers and importers of paper. He also referred to the VAT reform bill, which was handed to parliament by the government last February, and said: In this bill pulp, waste paper, and wood imports are exempt from paying VAT. This will be a great help to wood and paper industries. But for print media, writing and newspaper papers complementary measures were taken by Parliament and the Ministry of Culture and Islamic Guidance, whether in the field of VAT or support a tariff should be applied.

Export of ten thousand tons of sanitary paper (tissue) in the past year

He pointed to the rising consumption rate of sanitary papers (tissues) in the world said: the consumption of this kind of paper in 2000 was about 21 million tons, which in 2015 increased to 33 million tons. Also the production of this kind of paper in 92 was about 50 thousand tons, share of production to consumption was 37%, and consumption per capita was about 4.1 kilograms. With the help of industrialists of the country, and the investments made, and the needed supports, the production of this product in 2016 raised to 150 thousand tons, the share of production to consumption raised to almost 100%, and consumption per capita raised to 9.1 kilograms. Also in this year about 10 thousand tons was exported, and export development of this product is on the agenda of the Ministry of Industry, Mining, and Trade.

 

The supportive measures of the Ministry of Industry, Mine, and Trade

CEO of Chemical and Cellulose Industries of the Ministry of Industry, Mining, and Trade in the end said that the measures that has been taken to provide the raw material and to support production of paper and carton is highly commended. He said: Creating a 100% tax for export of waste paper as raw material as export customs to help create products that have higher added values, and putting imported pulp paper, wasted paper, wood pieces in the list of VAT exemptions in the bill sent by the government to the parliament in order to make the production in the country more competitive are among the most important measures taken so far.

He continued: With agreements made with the Organization of Forest, Rangeland, and Watersheds of the country to develop agriculture to produce wood needed for special kinds of paper and compressed wood papers and also following the execution of bills issued by the government are also from other noticeable measures. Taking these measures with the goal of providing the needs of the country and export will improve investment in this industry.




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