Pan Paper Handed over to New Managers, What Next?

The decision to revive the Webuye-based Pan Paper Mills just moved closer to completion after the new manager got handed over the facilities.

In a ceremony that took place on Monday and attended by the Governor for Bungoma County Kenneth Lusaka, the new managers, Rai group based in Eldoret officially assumed the ownership of Webuye Pan Paper.

The new manager reaffirmed their earlier commitment of focusing on producing only paper. They said that they do not intend to turn Pan Paper into any other entity apart from producing paper. They also reassured locals that Pan Paper will not take away anything that used to benefit them.

Pan Paper sold

Pan Paper was sold to Rai group at a cost of 900 million shillings. The factory was placed under receivership in the year 2009 and has been dormant for almost a decade. In 2012, however, the factory was valued at 18 billion shillings and questions are being raised as to how the company depreciated at such a fast rate.

Production in four months

The new managers, Rai group, have said that production in one of the four lines will begin in four months’ time. The group says that the line is being renovated and that production of an estimated 25000 tonnes annually is set to kick off after four months. The factory has four lines and only one seems to be in a condition that can be renovated faster as compared to other three. The managers say that the production in other lines may take as long as two years since new boilers have to be ordered and installed.

Former workers worried

Former Pan Paper workers are not as excited as the rest of the population about the opening of Pan Paper. The workers say that Pan Paper, prior to it being placed under receivership, they had not been paid their dues. They are worried that the new investor might hire other workers and their hope to be paid their balances to remain a fream.

Article by Juma Fred.