Korean paper firm to put up $100-M facility in Isabela
A KOREAN pulp and paper manufacturer will set up a factory in Isabela, which will be capable of producing paper products from corn—a project that is expected to benefit both the local labor and agricultural sectors.
In a statement, local representatives of CPNP Holdings—the seventh largest paper manufacturer in the world—announced that the South Korean firm and its partners would invest $100 million for the venture.
CPNP will put up its factory on a 50-hectare property in Cauayan, Isabela. The property may be expanded to 100 hectares in two years.
Initial production capacity is expected to hit 40,000 metric tons (MT) of pulp a year, utilizing 150,000 metric tons of corn stalks from Isabela’s corn farms.
CPNP Holdings, together with the US-based Overseas Private Investment Corp. (Opic), will be investing $40 million for the first phase of the project, and another $60 million for its second phase.
Environment-friendly operations
Article continues after this advertisementProject proponents are touting the facility’s environment-friendly operations since it uses corn byproducts, specifically corn stalks—a step up from the traditional pulp and paper manufacturing operations utilizing wood chips from trees.
Article continues after this advertisementAccording to the firm, the project is expected to generate direct employment for more than 500 people and benefit thousands of corn farmers in Isabela.
To undertake the enterprise, a local company called CPNP Isabela Philippines Inc. will be incorporated and registered with the Philippine Economic Zone Authority as an export enterprise.
The project’s local proponents are Filipino entrepreneur Alfred Joseph S. Araneta and Manila-based Korean trader Lee Hyun Suk.
“This investment is a coup for the Philippines as this project was on its way to another Asean country,” Araneta said.
On his part, Lee said that “the all-out support of the provincial government of Isabela, specifically Gov. Faustino Dy Jr., for this project is what made CPNP decide to locate in the Philippines.”
Paper to be produced by the plant will be sold in the local and export markets.
A memorandum of understanding for cooperation between the partners will be signed on Monday by CPNP chair Park Jong Bong and Isabela Gov. Faustino Dy Jr. at Malacañang Palace.
President Aquino and Agriculture Secretary Proceso Alcala will witness the signing.
