Paarl Media diversifies with new tissue plant

As of 1 June 2014, the Group acquired Correll Tissue (Pty) Ltd with unconditional approval received from the Competition Commission. The entity will be Paarl Tissue (Pty) Ltd trading as Correll Tissue. This acquisition marks the Group's exploration of extending its value chain and broadening appeal to a new and existing customer base.

Established in 2000, Correll Tissue reinvented itself in 2012 when it installed the de-inking and hot disperger unit. This resulted in Correll Tissue being the only independent mill in South Africa to generate a product range that matches the quality of other market leaders.

The acquisition allows the group to expand its manufacturing operations in the paper industry by harnessing the potential of waste paper - currently produced by the extensive printing operations of the Group - in the production of tissue paper. This vertical integration will result in significant value-add to the manufacturing processes by effective utilisation of waste paper generated by the printing operations.

Synergies being unlocked

As a business that holds sustainable printing practices in high regard, this acquisition will therefore lead to synergies being unlocked between printing operations and Correll Tissue.

The plant is currently located in Phoenix Industrial Park, nearby King Shaka International Airport and the Port of Durban. The plant's capacity is sufficient to convert all output produced by the tissue mill. Investment in recycling processes has resulted in 90% of the plant's water requirements being reprocessed.

Aaron Ganesh, Managing Director of Correll Tissue

"Aaron Ganesh will head Correll Tissue as managing director. As the previous MD of Paarl Media KZN, Aaron's know-how, experience in manufacturing and leadership will steer the way forward with the Group diversifying its offering," says Stephen van Der Walt, CEO, Paarl Media Group.

"Correll Tissue's competitive edge lies in providing the needs of discerning consumers who seek branded products of consistent quality at competitive market prices. The main product lines comprises of double and single ply virgin toilet rolls, single ply recycled toilet rolls, facial tissues, kitchen towels, serviettes, garage wipes and jumbo tissue wadding," says Aaron Ganesh.

"We are excited about the future possibilities of this tissue manufacturing facility together with the combined offerings of the Group. Our aim is to continue to deliver exceptional quality branded products utilising the best available technology in cost-effective formats for an increasing consumer market," concludes van Der Walt.