Cherat Packaging Limited (CPPL), a supplier of packaging material to the country’s cement industry, has agreed to sell its papersack Line V for EUR 4.40 million ($4.7 million).
The company, which is engaged in the manufacturing, marketing and sale of paper sacks, polypropylene bags and flexible packaging material, shared the development in its notice to the Pakistan Stock Exchange (PSX) on Wednesday.
“We would like to inform that Cherat Packaging Limited has entered into an agreement to sell its papersack Line V for a total consideration of EUR 4.40 million and has received the Letter of Credit for the same from the buyer,” read the notice.
CPPL shared that the dismantling, packing, loading and shipment of the papersack line to the buyer is expected to take approximately three months, after which it will receive sales proceeds.
“As already communicated, the company will be able to meet the demand for papersacks with its Lines Ill and IV having a combined capacity of 160 million papersacks per annum, in case there is demand for it,” read the notice.
Back in July, the Board of Directors of CPPL, citing shift in demand from papersack to polypropylene bags by the cement industry, authorized the management of the company to sell Line V – Universal Papersack Line of the company.
Incorporated as a public limited company in 1989, CPPL has a production capacity of 265 million paper bags and 195 million polypropylene bags per year.
It is the largest supplier of packaging material to cement industry of Pakistan including bags made from kraft paper and polypropylene granules. Moreover, CPPL has expanded its business horizons by supplying packaging material to sugar, chemicals and other allied industries.
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