The project will revitalize and restart operations of the Thabaung Pulp and Paper Mills. The Thabaung Pulp and Paper Mills consist of one high-grade pulp mill and one paper mill with a daily capacity of 200 tons of pulp and 50 tons of paper, respectively; and one newsprint paper mill with a daily capacity of 60 tons. The pulp and paper mills started operating in 2005 and 2008, respectively, and ceased production in 2014. The machines in the newsprint paper mill ceased production in 2017 due to a shortage in natural gas after conducting the final acceptance certificate test run in the same year.

Myanmar’s domestic paper consumption is increasing. Significant quantities of pulp and paper are imported annually, with transportation costs making up a substantial share of the price. By re-opening the Thabaung Pulp and Paper Mills, a portion of imported paper could be substituted with local production.

The scope of the project includes the renovation of the power plant to provide sufficient electricity for the factories; upgrading of the plants that are attached to the mills, including the alkali recovery plant, chlorine dioxide plant, and wastewater treatment plant; reconstruction of some chemical plant establishment of a plantation of raw materials; and production of value-added products.

The project aims to produce pulp and paper and value-added products, and reduce reliance on imported products.