Pan Paper factory to reopen next month

Pan Paper Mills in Webuye will officially re-open in 30 days, Chowdarry Venkanna, the General Manager of Rai Group of Companies has said.

Venkanna said that power and water has been restored and testing of machines is ongoing. “As you can see the smoke is already billowing from some machines,” Mr Venkanna said

Electricity has been restored after it was disconnected due to non-payment of bills before the factory’s collapse while water firms have cleared the usage from River Nzoia after site assessments.

Venkanna, who is overseeing the revival of the mill after Rai Group of Companies acquired it for Sh900 million said that they are putting things in place to ensure that the factory starts from next month.

“The official opening that was to be on August 30 failed because water had not been restored and there were some minor logistical problems which we have sorted out,” he said.

He said they had already absorbed 200 former workers and expect to take back another 200.

Yesterday, Bungoma County Governor Kenneth Lusaka visited the facility to assess the progress of its revival. Lusaka said that Phase One is almost complete and it will soon be reopened.

He said they were assessing the situation on the ground before the official launch by President Uhuru Kenyatta.

“I am very happy with the progress report. I hope the reopening is going to change the fortunes of this county. Its collapse rendered many people jobless and even broke some marriages,” Lusaka said.

The investor, Tarlochan Limited, a subsidiary of Rai Group of Companies, plans to pump in Sh6 billion to reopen the factory. The firm bought the factory from receiver-manager and lenders.

Apart from acquiring Pan Paper, the company also owns Raiply Timber Company, West Kenya Sugar Company and Menengai Oil Refinery Company.