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The dormant Pan Paper Mills in Webuye reopened back for business Friday afternoon, marking a huge milestone for the paper industry and Webuye residents since the factory collapsed nearly 10 years ago.
In April this year, the joint receivers of Panpaper mills handed over the mill’s assets to its new investor Tarlochan Limited after reaching an agreement to sell PanPaper to a local investor, paving way for the revival of the company.
The Investor plans to inject up to Sh 6billion over the next five years to rehabilitate the machines and improve on the establishment for the production of paper as well as ensure the plant is operational to full capacity.
The handover included the factory’s assets such as buildings, land and equipment with the investor inheriting a work force of nearly 150 employees largely deployed to guard the facility with joint receivers indicating that employees’ arrears during the receivership period would be processed and settled.
Substantial progress has been made towards the completion of rehabilitation works and reopening of the factory, the heart and soul of Webuye town.
The new investor is putting in place various measures to prepare the factory for its reopening scheduled for opening by President Kenyatta later this month.
In November, President Kenyatta toured the factory and due to return to Webuye on December 15 for the formal reopening of Pan Paper Mills and opening of the first line in the factory, with others due to come on stream later.
This has been revealed today during a tour to inspect progress at the factory by cabinet secretary for Industrialization Adan Mohamed.