Hakkani Pulp & Paper Mills is set to invest a total of Tk 33.2 million to modernise its paper production process and secure lower-cost, sustainable energy for its factory operations.
Of the total investment, Tk 7.2 million will be spent on replacing an ageing pulp-processing machine, while another Tk 26 million will be invested in a rooftop solar power system.
The listed paper manufacturer informed the Dhaka Stock Exchange (DSE) of the investment plan on Sunday, stating that its board of directors approved procurement of an FTC500 Twin Screw Press, also known as a Double Helix Crowded Pulp Machine, for its paper manufacturing unit.
The estimated cost of the machine, including installation, is Tk 7.2 million, which will be financed entirely from the company's internal resources.
The new machine will replace the existing ageing equipment and is expected to improve production efficiency, pulp dewatering performance and fibre recovery, while reducing maintenance costs. The company expects the investment to strengthen its overall operational efficiency and support long-term growth.
As the investment will be funded from the company's own resources, Hakkani Pulp will not incur any additional interest costs. Moreover, improved production efficiency and lower maintenance expenses are expected to reduce the per-unit production cost, potentially supporting the company's profitability.
Separately, the company plans to procure, install and commission a 615-kilowatt-peak (kWp) DC rooftop solar power system at its factory premises.
The estimated project cost is Tk 26 million, including installation expenses, and will also be financed entirely from internal resources.
The solar project is expected to improve energy efficiency, reduce the company's dependence on grid electricity and support its long-term sustainable manufacturing initiatives. The board has decided to implement the project in phases, depending on operational requirements and availability of funds.
Investors reacted positively to the announcements, with Hakkani Pulp's share price rising 1.36 per cent to Tk 81.70 on Sunday on the Dhaka Stock Exchange.
