In an exclusive conversation with The Pulp and Paper Times, Mr. Shahriar Hasan Khan, Deputy Managing Director of Lipy Group, shared the company’s pride in its successful entry into the paper manufacturing industry. He confirmed that Lipy Paper Mills Ltd., a subsidiary of the group, had completed the installation of its first paper machine (PM-1) and began commercial production of writing and printing paper in December 2020. This marked a significant milestone in the group's diversification journey, backed by a substantial investment of approximately INR 260 crore.
To ensure world-class quality, Lipy Group partnered with top-tier technology suppliers from around the globe. Despite the severe disruptions caused by the COVID-19 pandemic, particularly in travel and on-site services, the company managed to complete the commissioning process successfully. Mr. Khan emphasized that their team remained undeterred, executing the project through remote collaboration without compromising on quality. The paper mill was established in 2016 on a 7-acre site near Dhaka, with civil construction beginning in 2017 and machinery installation in 2018. Although the pandemic delayed progress, the company overcame these hurdles and achieved full commissioning.
Lipy Paper Mills now operates with a state-of-the-art infrastructure aimed at positioning the company among the elite paper manufacturers both in Bangladesh and globally. According to Mr. Khan, the group is committed to building trust through quality, technology, and innovation. PM-1 features a finished deckle size of 3.3 meters and is capable of producing a wide range of paper grades between 25 to 180 GSM, including cigarette paper, glossy paper, virgin liner, uncoated board, and copier paper.
The production line integrates critical components sourced from multiple countries—size press, headbox, calenders, and boiler from Italy; stock preparation from Parason Machinery in India; a biological, chemical-free effluent treatment plant (ETP) from Taiwan; and additional systems from China. A major technological highlight is the DYNAFLO FL hydraulic headbox equipped with a dilution control system from OVERMADE, which delivers outstanding formation and weight profile control, contributing to the premium quality of the final paper product.
Despite these advancements, the market environment has remained challenging. Mr. Khan noted that the COVID-19 pandemic significantly impacted the demand for writing and printing paper throughout Bangladesh. While the company continues to receive orders, they are insufficient to match the mill's full capacity. In response, Lipy is planning to diversify its product offerings. It is currently modifying the size press section to begin producing cup stock paper and is in discussions with major industry players such as Valmet and PMP to support this transition. Mr. Khan expressed optimism that the reopening of schools and colleges—anticipated in February or March—would help revitalize domestic paper demand.
To support its long-term growth and sustainability goals, Lipy Paper Mills has obtained an export license from the Bangladeshi government, allowing it to sell 50% of its production internationally. The company has also applied for FSC certification to strengthen its export credentials and has already received its first orders from India. Looking ahead, Lipy Group is planning further expansion, with PM-2 set to produce 100 tons per day of virgin Kraft liner beginning August 2021. Plans for a third machine, PM-3, focused on tissue paper production, are in place but currently on hold due to the lingering effects of the post-COVID economic environment.
