The Ministry of Industry supports domestic carton manufacturers or causes this industry to go bankrupt!

Feed: 2882 - Date: 7/14/2018 - Views: 490

A main part of these factories are working with at most 30% of their nominal production capacity, and another number of them are on the verge of closure.

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Asr KhabarNews Agency – Hossein Kharaj: Iran’s carton industry and generally packaging industry can be considered a part of all industries. According to experts, this field has not been able to achieve its main position yet after years of activities in the country so that producers in different sectors do not care enough about the packaging of their products, while the packaging today is one of the most important requirements of the exports and the creation of global brands. Now not only has this problem not been resolved but also another problem has been added. It is multi-exchange rate of foreign currencies and the allocation of free exchange rate to the imports of paper which is the most important raw material for carton production.
In an interview with Asr-e-Khabar’s reporter in this regard, the managing director of the Association of the Executives of Carton and Corrugate Industries of Iran said, “It is not a good year for carton manufacturing industry; unfortunately the multi- exchange rate for foreign currencies, the allocation of second priority (the exchange rate of 4200Tomans) to the imports of cartons, but the allocation of foreign currencies at free exchange rate to the imports of paper (the most important raw materials for the production of cartons) will push the carton consumers towards the imports while if the paper required for the carton manufacturing companies is supplied, it is possible to produce cartons domestically that can compete with the foreign samples.”
Stating that there is no coordination between domestic paper makers and carton makers, Ali Gholi Azami said, “The paper manufacturers’ desire to export their products with regard to the domestic requirements has caused the carton makers to supply their needs by importing foreign paper at the free exchange rate what leads to the increase in the carton cost price.”
Azami added, “Another problem of carton making industry is the issuance of unconditional licenses from the Ministry of Industry, Mine and Trade for the establishment of carton production units.”
Azami continued, “At present, there are 167 carton making units in the country a main part of which are working with at most 30% of their nominal production capacity, and another number of them are on the verge of closure. On the whole, we can say that the domestic production of the industry is saturated, yet the Ministry of Industry issues license for new manufacturing units without paying attention to the Association of the Managers of this industry.”
According to Asr-e-Khabar’s reporter, in addition to the problems, such as exchange rate fluctuations, the status of sanctions etc. which have external origin, the lack of programming and constructive interaction among various sectors in the process of carton making inside the country, as well as lack of support and enough accompaniment of the governmental officials with those who are active in this field have caused the industry to confront with serious challenges. Many experts believe that many internal problems can be overcome by developing a comprehensive plan, creating interaction between paper making units and carton manufacturers, and by the government’s supports and accompaniment, especially the Ministry of Industry, Mine and Trade so that the effects of imposed external problems will be declined to large extent in order that the domestic manufacturers can work with full production capacity and take the path of sustainable development.

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