United Pulp plans 5% hike in output

Manila, Philippines -  United Pulp Paper Co. Inc (UPPC), a wholly-owned local subsidiary of SCG Paper, intends to increase the production capacity of its manufacturing plant in Calumpit, Bulacan by five percent next year to remain competitive in the market.

Last month, the Department of Trade and Industry (DTI) approved lower safeguard duties for imported testliner boards as the local industry shows determination to compete.

Testliner boards, usually made of recycled paper, are used to produce corrugated boxes for the packaging of consumer products.

Trade Secretary Gregory Domingo has approved the reduced duties on imported testliner boards at P1,274.90 per metric ton for the period of April to June 12, 2012, and P1,211.15 per metric ton from June 13, 2012 to June 14, 2013.

In an interview during the fifth year celebration of its Sharing the Dream CSR project in Taguig University recently, UPPC president and CEO Wichan Jitpukdee said the lowering of import duties on imported testliner boards would not affect the company’s operations.

“I think along the way, we have an improvement plan that will give us time to improve. And we are investing to improve our efficiency so right now, it will not have an effect on our business,” he said.

Jitpukdee said the company intends to increase the production capacity of its manufacturing plant by five percent next year because the modification procedures would take one year to complete.

The modification will include increasing the speed of the machines used for production. This year, UPPC has earmarked P200 million for the maintenance of the machines.

The factory in Bulacan currently produces linerboards and corrugating medium generally used for carton packaging products.

 It is powered by a 24-megawatt co-generation facility, a state-of the-art circulating fuidized bed boiler that utilizes coal, waste paper sludge, and biofuel. Some 30 percent of the fuel requirements of the plant come from biofuel produced from rice husk.