Feasibility Study of Establishing the Factory of Producing Kraft Paper from Waste Paper

Feasibility Study of Establishing the Factory of Producing Kraft Paper from Waste Paper

Project Date : 2018
Employer : Government of the Islamic Republic of Iran The Supreme Council of Iran’s Free Trade, Industrial & Special Economic Zones


Among top industries, paper industry has influenced human life. This industry, however, is
very challenging for countries since it needs high-tech equipment, great deal of money,
extensive resources, skilled workforce, and management.

Cardboard producing factories, cement package producers, and pocket producers are top
users for Kraft paper.

Following the expansion of paper market, especially in packaging sector, and an increase in
consumers’ demand in domestic and foreign markets, running Kraft paper production lines is
one of the top priorities in boosting economy of the country.

At this moment, there are 9 operating factories that produce Kraft paper with nominal
capacity of 120 thousand tons in the country. Statistics indicate that between 35 to 40
thousand tons of Kraft paper are imported while the export rate is zero.

Paper consumption per capita in Iran is 18 kg and 2 kg for Kraft paper which calls the
demand for approximately 170 thousand tons. By establishing and running Kraft paper
production lines in the country, we can prevent extra imports and enhance the economy by
improving the domestic production rate.

Arvand Free-Zone is one of the biggest commercial terminals by enjoying proximity to Iraq.
Moreover, being the top oil product producer and possessing 8 mini refineries and Offshore
Engineering And Construction Companies have made great potentials for intensive expansion
in this region.

According to development plans and bilateral
trades’ enhancement with Iraq, there are good
opportunities for improving offshore engineering services, and developing oil, gas and
petrochemical industry. Abadan and Khorramshahr have joined Free Zones in order to
enhance their economic situation.

Advantages of Investment in Arvand Free Zone:

Special geographical condition of Arvand Free Zone due to transit and strategic channels in
business routes and easy access to international waterways, and proximity to Basra (second
largest province of Iraq) has captivated international attention as an especial location for
commercial and business development.

Also 20-year tax exemption according to Free Zones law, exemption from customs duties for
importing machinery and raw materials and exporting goods, Special facilities for the transfer
of goods produced in the region to the mainland, easy and unrestricted currency exchange,
and proper situation for joint ventures, have made an intriguing situation for investment in
Arvand Free Zone.


Advantages of Establishing the Factory of Producing Kraft Paper from Waste Paper in
Arvand Free Zone:

One of the key elements to produce paper is water, so it is clear that choosing the right place
with enough water resources is initial. Arvand Free Zone is attributed to be a good place for
this industry.

Easy export conditions, sufficient energy resources, easy access to raw material, inexpensive
workforce, exemption from customs duties, and high demand for packaging factories can
have an influence in establishing a Kraft paper factory in Arvand. Arvand has great deal of
date production that results in tons of wastes from palm trees that can be used as the great
source to provide raw materials, as well.

There are only 59 units in Iran that produce Kraft paper with nominal capacity of 550,592
tons and according to the reports they only produce 70% of their nominal capacity (385
thousand tons). As it is revealed from the studies, it is clear that the target market for
exporting paper is Iraq, by Arvand proximity to the target market it can be very useful to
establish a Kraft paper production line in Arvand region



Factory of Producing Kraft Paper from Waste Paper


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