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Butali Sugar Company to construct paper mill at Sh15 million

BUSINESS
By NATHAN OCHUNGE | May 15th 2017 | 2 min read
By NATHAN OCHUNGE | May 15th 2017
BUSINESS
Butali Sugar Company photo:courtesy

Butali Sugar Company will construct a Sh15 million paper mill that will use bagasse as its raw material.

Speaking to The Standard, the company's finance manager, Dan Kiyondi, said construction work would start early next year and that once the factory was fully operational, more than 500 direct and 2,000 indirect jobs would be created.

Mr Kiyondi said there was enough sugarcane waste to start making paper and that the plan was to buy additional waste from other millers.

"Making paper from sugarcane waste is very economical since it requires less power, unlike wood. Rice straws can also be used," said Kiyondi

He said the waste produced from the milling of paper would be recycled and converted into fertiliser.

Kiyondi also said producing paper from sugarcane waste would help reduce illegal logging, reverse deforestation, and slow the adverse effects of climate change.

RECYCLED AND CONVERTED

US, India, Australia, Mexico and several European countries use sugarcane waste to produce paper

Butali Paper Mills will rival the recently revived Pan Paper Mills that was re-branded Rai Paper after the Government sold it to the Rai Group for Sh900 million.

Elsewhere, West Kenya Sugar Company has been accused of causing instability in the Nyando sugar belt.

The managements of cooperative societies serving some 70,000 cane farmers accused the company of introducing "dubious and illegal business practices" to gain unfair advantage over its competitors such as Chemelil, Muhoroni, and Kibos cane factories.

The managements of Singila, Rerende, and Chebakika cooperative societies held a crisis meeting in Mberere with farmers to device ways of cushioning them from the factory's 'dominance battles'.

"West Kenya is indiscriminately harvesting immature cane of 12 months instead of the regular 18 months to sabotage the normal flow of cane supply to the other factories," claimed William Mutai, the Singila Cooperative Society chairman.

 

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