Papyrus Australia Ltd (PPY) is pleased to announce that it has entered into an agreement with NAG-HAMADY Fiber Board Company, an Egyptian company incorporated under the laws of Egypt, that manufactures and produces MDF and other wood products from bagasse for use in the building and construction industry in Egypt and the Middle East.
NAG-HAMADY is 50% owned by the Egyptian Government and 50% by the National Bank of Egypt, is based in the Sohag Governate of Upper Egypt and its factory operation is proximate to the site selected by Papyrus Egypt for its factory for the production of banana veneer and banana fibre from banana tree trunks. NAG- HAMADY is Egypt’s largest producer of bagasse (the waste fibre resulting after the extraction of sugar juice from harvested sugar cane fibre) MDF panelboard sold in Egypt, and the Middle East region, and is looking for additional sources of agricultural fibre for its growing business to export to Europe. NAG-HAMADY believe that banana fibre will be the additional natural fibre they are seeking for their existing business of MDF panelboard manufacture.
The agreement covers 4 key elements: Firstly, it permits NAG-HAMADY to scientifically test and industrially trial the potential use of banana fibre for the production of products for use in the building and construction industry. Fibre for the initial testing will come from Papyrus Australia’s Walkamin demonstration factory. The testing regime will initially start with a mix of bagasse and banana fibres proceeding to 100% banana fibre.