The production line of printing and writing paper of Mazandaran Wood and Paper Industries Company, which has been closed for about a year due to lack of raw materials for wood, was resumed today, Thursday, in the presence of the Deputy Governor of Mazandaran.

At the re-launch ceremony of this production line, the CEO of Mazandaran Wood and Paper Industries Company said, “According to the schedule, about eight thousand tons of writing paper and 500 tons of newsprint will be produced and marketed from today until the end of the year.”

Omid Niknejad added, “Mazandaran Wood and Paper Industries Company, as the main producer of this product in the country, will try to provide a part of the market requirement this year and put the production schedule for the next year on the agenda, too.”

stating that Mazandaran Wood and Paper Company is able to supply 25% of the country’s writing paper requirement, he said, “The company’s production faced serious challenges due to raw material supply problems in recent years, leading it to the brink of bankruptcy.”

Stating that the company’s raw materials include 30% of garden wood and 70% of cardboard and paper waste, Niknejad added: “After about five years of enduring the recession in this factory, the export of industrial paper to Turkey began three months ago, and we now export paper monthly.”

He mentioned the shortage of raw materials, liquidity and the supply of main parts of machines as the main problems of producers and said, “Currently 60 to 65 percent of the costs of Mazandaran Wood and Paper Company are the import of foreign wood, fibers, pulp and the main parts.”

Niknejad, meanwhile, called the use of foreign wood a priority for the company and called for a reduction in customs duties on foreign wood imports for the production of printing paper, writing paper and newsprint, as well as a reduction in import duties on imported pulp.

The CEO of Mazandaran Wood and Paper Company mentioned the increase in energy consumption costs as another problem of the production sector and said, “Last year, the cost of water, electricity and gas of this company was about 15 billion Tomans, equivalent to about 3% of production costs, but this year 30 billion Tomans was paid for energy in 9 months, which means an increase in its role to 6% of production costs.”

Mazandaran Wood and Paper Company was supported by the government several times after the implementation of the forest respiration law, including the provision of $ 10 million in foreign currency at NIMA exchange rate for the supply of raw materials in 2020.”

The company started operating in 1997 in the city of Sari and now has about 1,300 staff according to the officials.

Mazandaran Wood and Paper Company is currently a private stock company, 60% of which is owned by Ayandeh Pouya Company, 20% by the State Pension Fund and the other 20% by the Social Security Investment Company.