Karnaphuli Paper Mills
Karnaphuli Paper Mills is a state-owned Bangladeshi pulp and paper manufacturer based in Chandraghona.
Last updated August 26, 2026
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Overview
Karnaphuli Paper Mills is a state-owned pulp and paper manufacturer in Bangladesh, located at Chandraghona on the Karnafuli River in the Chittagong Division. Established in the early 1950s, it was created as part of a broader industrialization effort intended to make Pakistan, and particularly East Pakistan, less dependent on imported paper. The facility was developed under the Pakistan Industrial Development Corporation, a government-owned organization, and began operating in 1953. The choice of Chandraghona reflected several practical considerations. The site was near substantial bamboo resources, had access to water from the Karnafuli River, and could use transport connections leading toward Chittagong Port. These conditions supported the plant's intended role as a large-scale pulp and paper producer. Planning followed recommendations made at a 1949 industrial conference, while government approval for construction was given in 1950. Supporting infrastructure, including a water-supply system, power facilities, and employee housing, was in place or under construction by January 1952. The original design target was approximately 30,000 tons of high-quality paper per year. Management of the mill changed in 1959, when the Dawood Group took over from the Pakistan Industrial Development Corporation. Under that management, the facility's capacity was expanded in response to rising demand. Following the independence of Bangladesh, the mill was nationalized and placed under the Bangladesh Industrial Development Corporation. It subsequently became a subsidiary of the Bangladesh Chemical Industries Corporation, the state industrial holding organization responsible for a range of chemical and industrial enterprises. Karnaphuli Paper Mills has historically been described as the largest paper production facility in Bangladesh. Its significance therefore extends beyond a consumer-facing brand: it is a major industrial asset associated with the country's paper-supply infrastructure. Publicly available descriptions identify its principal activity as pulp and paper manufacturing, but do not provide a complete current product catalogue, detailed sales information, or a confirmed retail brand architecture. The mill's history also includes labor conflict. In 1954, violent riots occurred between non-Bengali and Bengali workers at the facility, reflecting the wider ethnic and political tensions of the period. In 2016, the plant was criticized for not having an effluent treatment facility. That criticism raised environmental concerns about the handling of wastewater from paper manufacturing, although the available reference material does not establish the result of any subsequent remediation, regulatory action, or investment program. Current public information is insufficient to confirm detailed production volumes, export markets, financial performance, or the mill's present operating condition beyond its continuing association with Bangladesh Chemical Industries Corporation.
History
The origins of Karnaphuli Paper Mills lay in postwar industrial planning for East Pakistan. A 1949 industrial conference recommended establishing a pulp and paper mill so that Pakistan could improve domestic paper self-sufficiency. In February 1950, the government's Development Board approved construction of a facility on the Karnafuli River. Chandraghona, approximately 26 miles upstream from Chittagong, was selected because the area offered bamboo, abundant water, and transport access through Chittagong Port. The project was developed by the Pakistan Industrial Development Corporation. Construction included not only the mill but also supporting infrastructure. By January 1952, a water-supply plant, power plant, and company housing had been built, while construction of the main production facilities was progressing. The plant was designed for an annual output of 30,000 tons of high-quality paper and began operations in 1953. The mill's first recorded chief executive officer was Christian Kaijser, who held the position from 1952 to 1953. In 1954, the facility experienced violent riots involving non-Bengali and Bengali workers. The episode occurred during a period of significant communal, linguistic, and political tension in the region and forms part of the mill's early institutional history. On 1 October 1959, the Dawood Group assumed management from the Pakistan Industrial Development Corporation. The new management pursued capacity expansion as demand for paper increased. This private-sector management phase ended after the independence of Bangladesh, when the mill was nationalized and transferred to the Bangladesh Industrial Development Corporation. In the state sector, Karnaphuli Paper Mills later operated as a subsidiary of Bangladesh Chemical Industries Corporation. By 2016, it was described as Bangladesh's largest paper-producing factory. Its location, scale, and state ownership made it an important part of the country's industrial base, although publicly available material does not provide a comprehensive account of production technology, product grades, current capacity, or financial results. Environmental performance became a prominent issue in 2016, when the mill was criticized for lacking an effluent treatment facility. Since paper manufacturing can generate process wastewater, the reported absence of such infrastructure prompted concern about pollution control and regulatory compliance. The available reference material does not document whether a treatment plant was subsequently installed or whether the criticism led to a formal enforcement outcome. Beyond this environmental controversy, the accessible historical record provides limited information about later leadership, commercial strategy, product branding, or market expansion.
- 2016
Environmental criticism
[1]The mill was criticized for reportedly lacking an effluent treatment facility.
- 1971
Nationalization after Bangladesh independence
[1]Following Bangladesh's independence, the mill was nationalized and placed under the Bangladesh Industrial Development Corporation.
- 1959
Dawood Group assumes management
[1]On 1 October, the Dawood Group took over management from the Pakistan Industrial Development Corporation and began expanding capacity.
- 1954
Labor riots at the mill
[1]Violent riots occurred between non-Bengali and Bengali workers at the facility.
- 1953
Operations begin
[1]Karnaphuli Paper Mills began operating as a government-backed pulp and paper facility.
- 1951
Karnaphuli Paper Mills established
[1]The mill was established by the Pakistan Industrial Development Corporation as a major industrial project in East Pakistan.
- 1950
Construction receives government approval
[1]The government's Development Board approved construction of the mill on the Karnafuli River in February 1950.
- 1949
Industrial conference recommends a paper mill
[1]An industrial conference recommended establishing a pulp and paper mill in East Pakistan to support domestic paper self-sufficiency.
Products and positioning
A large, state-owned national paper-manufacturing facility serving Bangladesh's industrial and paper-supply needs.
Paper products · 1953
Paper
Paper is the mill's principal publicly documented output. The facility was originally designed to produce approximately 30,000 tons of high-quality paper annually and became one of Bangladesh's largest paper-manufacturing assets. The available reference material does not identify specific current grades, branded formats, or packaging.
Pulp · 1953
Pulp
The mill was established as a pulp and paper manufacturer, with bamboo identified as an important local raw-material resource in the selection of its Chandraghona site. Publicly available material does not specify current pulp grades, volumes, or whether pulp is sold separately from the paper operation.
Controversies
2016
Criticism over effluent treatment
Karnaphuli Paper Mills faced criticism for reportedly lacking an effluent treatment facility, raising environmental concerns about wastewater from its manufacturing operations. The available source does not establish the outcome of the criticism or document subsequent corrective measures.
Brand decisions
1971
Nationalization and transfer to state industrial managementStrategyBackground
Bangladesh's independence brought major changes to the ownership and administration of industrial enterprises previously operating in East Pakistan.
Action taken
Karnaphuli Paper Mills was nationalized and placed under the Bangladesh Industrial Development Corporation.
Aftermath
The mill later operated as a subsidiary of Bangladesh Chemical Industries Corporation.
1959
Management transferred to the Dawood GroupStrategyBackground
The Pakistan Industrial Development Corporation had operated the mill since its establishment, while demand for paper was increasing.
Action taken
On 1 October 1959, the Dawood Group assumed management and began expanding the mill's capacity.
Aftermath
The mill remained under Dawood management until Bangladesh's independence, after which it was nationalized.
Sources1 sources
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