Billionaire Sukanto Tanoto Invests $2.3 Billion In Environmentally Friendly Paperboard Factory
Asia Pacific Resources International Limited (April Group)—controlled by billionaire Sukanto Tanoto—began building a 33.4 trillion rupiah ($2.33 billion) production facility in Riau, Indonesia that will make sustainable paperboard, according to a statement released on Tuesday. The new facility will produce 1.2 million tons of environmentally friendly folding paperboard annually when it’s completed in the third quarter of 2023.
“This is our largest single investment here since the company was founded almost 30 years ago. This product diversification strengthens our commitment to grow our business sustainably,” Sihol Aritonang, president director of PT Riau Andalan Pulp and Paper, the operating arm of April Group, said in a statement.
The expansion is aimed to meet the demand for environmentally friendly packaging products for domestic and international markets. April Group says it sources its fiber supply from 100% renewable plantations that will also supply the new facility. It recorded a 40% increase in fiber yield in the last five years and pledged to spend $1 per tonne of plantation fiber produced for landscape conservation.
April Group unveiled a series of ESG targets in November 2020 called “APRIL2030,” which are aimed at delivering a positive impact on the climate, nature and people, while growing its business sustainably over the next decade.
April Group is part of the Royal Golden Eagle (RGE) Group that was founded by Tanoto in 1973. Based in Singapore, RGE’s operations span pulp and paper, palm oil, and energy. The tycoon was ranked No. 21 on the list of Indonesia 50 Richest that was released in December with a net worth of $2.1 billion.