Asia Pacific Resources International Limited (APRIL Group) is set to expand its product portfolio in the downstream sector by investing IDR33.4 trillion ($70 million) in a sustainable paperboard production facility.
The construction of the new facility - which will be located at APRIL’s operations in Pangkalan Kerinci, in Sumatra, Indonesia - is one of the largest manufacturing investments in Sumatra in the last decade. The investment is expected to support Indonesia’s continued economic development and recovery following the COVID-19 pandemic through the diversification of sustainable downstream fibre products with added value.
When completed, the paperboard packaging facility will be capable of producing 1.2 million tons of folding box board annually that is fully recyclable and biodegradable. This growth is to meet the demand for more environmentally friendly packaging products in the domestic and international markets.
APRIL Group’s fibre supply comes from 100% renewable plantation sources. Additional supply for expanded production capacity will come entirely from its existing supply chain. The company has posted a 40% increase in fibre yield over the past five years from its existing plantations while also committing $1 per tonne of plantation fibre produced towards landscape conservation. The company has targeted a 50% gain in fibre plantation productivity by 2030.
APRIL Group is a leading producer of fibre, pulp and paper with plantations and manufacturing operations in Riau Province, Indonesia.
