Karnaphuli Paper Mill (KPM) in Kaptai, once a profitable venture, has faced losses since FY09 due to outdated machinery, mismanagement, and corruption. Production has dropped to 2,000-6,000 tonnes annually, with Tk45 crore in yearly losses. A Tk36,000 crore revival plan aims to restore operations and establish six new plants, including a chemical facility and a synthetic polyester fiber unit. New leadership under MD Mohammad Shahid Ullah is driving efforts to modernize and reduce production costs, including sourcing cheaper foreign pulp and producing raw materials in-house. Private paper mills are also struggling, facing rising raw material costs, gas, and electricity prices, along with difficulties in opening LCs. Industry insiders highlight a crisis not seen in decades.
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