Karachi August 21 2023: Cherat Packaging Limited has carried out the sale of its papersack lines I and II, as stated by the company.
The company's share price experienced a decline of PKR 2.05, equivalent to a decrease of 1.97 percent, ultimately settling at PKR 102.0 on the Pakistan Stock Exchange.
The company's official statement confirms that it has received a total of PKR 58.6 million from the transaction involving the disposal of old Kraft Papersack Lines I and II. With the remaining capacity, the company will still be capable of fulfilling the limited requirement for paper sack bags.
In light of the changing demand within the cement industry from paper sacks to polypropylene bags, the Board of Directors has granted approval to the company's management for the sale of Line V - Universal Papersack Line. The company will continue to address the limited demand for paper sacks through its Lines III and IV, which together have a collective capacity of producing 160 million papersacks annually.
Cherat Packaging Limited – a prominent name in the packaging industry – is a Ghulam Faruque Group (GFG) company. Established almost 33 years ago, CPL started its journey by producing quality cement sacks and became the leading manufacturer of cement sacks. Since 2011, the Company entered and soon became the leading manufacturer of Polypropylene bags. During 2018, the Company yet again achieved a milestone by launching its Flexible Packaging Division. The Company acquired state-of-the-art Plant and Machinery from the top manufacturers around the globe.
The Company is also active in exporting bags to different parts of the world. Company is supplying bags to sugar, wheat, chemical and other sectors as well. The plant has an annual production capacity of 660 million bags (Kraft paper and Polypropylene combined) and 12.6 million Kgs (Flexible Packaging material).
