Crown Paper Mill Ltd
Issue 131 August 2016
On a roll
With two decades of manufacturing experience, Crown Paper Mill Ltd. represents a leading name in the production of premium quality tissues
Crown Paper Mill Ltd. is a tissue paper manufacturing mill based in the Ajman Free Zone, Ajman, located near Dubai within the United Arab Emirates. Throughout its history Crown Paper Mill has serviced clients in both the domestic and international market within the UAE, Oman, Pakistan, India, Sri Lanka, Zambia, Australia and the UK.
In early 2016 it was announced that Ittihad International Investment has finalised the acquisition of Crown Paper Mill, signalling the multi-disciplined investment group’s entry into the tissue manufacturing market. Prior to its purchase of Crown Paper Mill, Ittihad was already active within several industries in the manufacturing, trading, contracting and services markets. Its portfolio of owned businesses includes Ittihad Paper Mill LLC (IPM), the first printing and writing paper production facility in the GCC. The experience of Ittihad within the paper production industry and the company’s strong financial base provides Crown Paper Mill with a strong platform from which to further its own manufacturing presence within the tissue market. Crown Paper Mill produces prime quality tissues in jumbo rolls using 100 per cent virgin pulp in various grades including facial, toilet, kitchen towel, napkin, C fold towels and carrier tissue. As a result of its purchase of the business, Ittihad has established an immediate presence within the regional tissue market in the UAE, despite being a new player in the industry.
At present Crown Paper Mill operates two machines with a total capacity of 35,000 tonnes per year, with further investment into production expected as early as 2017. “We are currently completing an investment valued at around $60 million in Crown Paper Mill. I had previous experience in the tissue business and Ittihad had been discussing the possibility of acquiring a tissue production plant within the GCC. We knew that the owners of Crown Paper Mill had experienced some management issues and were looking to sell the plant and we had an experienced team with knowledge of the tissue industry, which allowed us to acquire the business,” reveals Managing Director, Abdullah Al Khateeb. “The tissue business in general is a great market and with our experience we are sure that we will be able to expand our presence in the local region and beyond. As our position in the market grows following the acquisition, we will look to expand the company by adding another plant or by expanding our capacity at Crown Paper Mill with another machine.”
While the purchase of Crown Paper Mill by Ittihad International Investment represents an exciting milestone for both organisations, there are challenges within the tissue industry globally that will need to be addressed during the coming years. Presently there are significant pressures within the tissue market relating to the depressed price of jumbo tissue rolls and the rising cost of pulp in the paper industry which creates a greater need for efficient manufacturing practices. Furthermore, the global trend in recycled paper and reduction in consumer spend on toilet paper has had an impact on the price of tissue roll to manufacturing clients around the world. For example, Mintel research published during 2016 shows that within the UK over the past five years the toilet tissue market has declined from £1,192 million in 2011 to £1,117 million in 2015, representing a drop in market value of six per cent. To combat these challenges, Crown Paper Mill will continue to focus on the delivery of premium quality tissue, while seeking new opportunities in both its traditional and new markets.
“Although prices are down slightly in line with the current state of the local economy, the market is still relatively strong. The main challenge that we have at present comes from the import of product from regions like China, Indonesia, Turkey and India,” Abdullah concludes. “All of these contribute to market challenges in terms of price, however we have several advantages including quality, location, convenience and flexibility. We are investing to improve the overall level of quality of our paper and we are the only company locally that is able to produce high grades of 35 GSM and above. We currently have a production capacity of around 35,000 tonnes per year and we are looking to increase this through future investment and greater efficiencies.”
Crown Paper Mill Ltd.
Products: Premium quality tissue paper manufacturer