Sonali Paper and Board Mills has signed a Memorandum of Understanding (MoU) with Chinese firm Zhangjiagang Fineness Aluminium Foil Company to set up an aluminium foil paper unit in Narayanganj's Rupganj.
Mohammad Younus, managing director of Younus Group and chairman of Sonali Paper, and Md Zahidul Alam, chief executive officer of IBN Corporation, signed the deal on behalf of Sonali Paper and Zhangjiagang Fineness Aluminium respectively at Dhanmondi in Dhaka on Sunday.
An aluminium foil paper machine, which is fully automated, can produce an average of 1 lakh pieces of aluminium foil container boxes per day.
This will increase the annual sales of Sonali Paper by 25%, Mohammad Younus said in a press statement.
Aluminium foil containers are used in family banquets and the packaging of food-related industries such as airline snack, western-style pastry baking, with the shape and size favoured by the customer.
Meanwhile, industrial aluminium foil jumbo roll is used in electronics, cigarettes and the food packing industry. Aviation food packaging foil of all kinds of colour and design is available, and companies can coat, emboss, and slit according to clients' demand.
Currently, Sonali Paper mainly produces white and printing papers, simplex papers and duplex papers.
Sonali Paper and Board Mills started its business in 1977 at Rupganj in Narayanganj and the company was listed with the Dhaka bourse in 1985.
Once sent to the over the counter market due to its failure to comply with listing criteria, the company came back at the main trading board of the bourses last year as it demonstrated a comeback in its business.
The company disbursed 5% cash and 10% bonus dividend among its shareholders for the 2019-20 fiscal year.
The company's paid-up capital is Tk18.3 crore, authorised capital is Tk50 crore.
Sponsor-directors own 72.06% stakes in the company while institutional investors own 5.54% and the general public 22.40% as of 30 April 2021.