Mozambique: Sofala company plans production of raw materials for paper

22 August 2008

Maputo, Mozambique, 22 Aug – Indústria Florestal de Manica (Ifloma), based in Mozambique’s Sofala province, plans to invest US$100 million in planting eucalyptus trees for paper pulp production, Mozambican newspaper Notícias reported.

The papaer also said that the company had taken the necessary steps to carry out the project, namely its environmental impact study, consultation of local communities and others.

The eucalyptus plantation will cover an area of 50,000 hectares and this project, based in the Muanza district of Sofala province, is expected to provide 1,500 jobs.

Indústria Florestal de Manica was privatised in 2004, with South African company Komatiland Forests now owning 80 percent and the Mozambican state the remaining 20 percent.

The company was set up in 1982 with the help of Sweden and at the time had the best and most modern saw mill in Mozambique, producing planks and chipboard.

The civil war brought an end to production and the first attempt to privatise the company was made in 1998 when 80 percent of it was sold to Portuguese group Sonae Indústria, a sale which was later cancelled with Mozambique saying that Sonae Indústria had not respected the terms of the contract. (macauhub)