Supporting Georgia’s Recycling Sector – Kriala Ltd. Receives over 100k Grant from USAID / CENN Waste Management Program

The recycling sector in Georgia is relatively young, yet is on its path to expansion. Some strands of the sector are more advanced than others, for example paper recycling is comparatively advanced and on average up to 10,000 tons of paper is recycled per year.

The sector undoubtedly requires additional support in either provision of recyclables or updating the technology to meet the demand and increase the capacity. The USAID-funded waste management program (WMTR), implemented by CENN, has given out over $500,000 in grants specifically for recycling companies to update their technologies or support other business operations. The grants were given out to five companies who collect separated waste and recycle paper, glass, tires, and plastic.

One of the recipients of the grant was paper waste recycling company Kriala Ltd. The company purchased modern technology to increase the performance and improve its capacity.

The equipment purchased within the grant included a paper mass spreading box and belt conveyer. The paper mass spreading box will ensure the even distribution of paper mulch on the surface and the formation of uniform thickness paper, while the belt conveyer will ensure the formation of all types of fibers and will minimize the company’s losses.

Kriala Ltd, one of the largest paper recycling companies in the country, produces toilet paper. The company was established in 2013 and sells its products throughout the country, through small and medium-sized retailers, as well as large supermarket chains.

Although the company’s scale of sales is already quite large, it is expected that after receiving the equipment from the WMTR program, its performance, productivity and sales will significantly increase through improved product quality, contributing to attracting specific consumers.

Another concern prior to the purchase of said equipment was high losses, at around 10%, which decreased company profit by 2%, hindering the effective utilization of raw materials and reducing the quantity of final products.

Along with production and economic goals, the sub-grant pursues the following environmental objectives: reducing landfill waste, reducing the amount of waste paper in the environment, and conserving forest resources by recycling paper.

After achieving these goals, the company will be able to produce competitive products, reach new consumers and increase its output and sales.

GEORGIA TODAY spoke to Mr. David Begiashvili, Director of Kriala Ltd, to find out more about the company’s current operations and future plans

Tell us about the Kriala brand.

Kriala has been operating in the Georgian market since 2013 as a hygienic paper producer. We have two main directions: production and manufacturing of products from primary raw materials, and processing of paper waste and subsequent production.

What distinguishes Kriala from other similar profile companies?

What distinguishes our company is that we are the only brand in this field that produces hygienic paper from both raw material and from material obtained through the processing of paper waste.

What would you say about the importance of this direction in terms of environmental protection?

We process 300 tons of paper waste per month and have the potential to double that. It is important because people have to realize that paper waste is not rubbish but raw material that will be processed in the same country. You can save up to 15 trees by delivering 1 ton of paper waste.

Tell us about your collaboration with the WMTR program.

The program aims to support companies working in the waste processing sector, that’s why we decided to participate in it. It contributes to the development of existing production lines and bringing them to European standards through systematization of equipment and production optimization. In addition, the WMTR program is providing a variety of technical support to numerous recycling companies, including ours.

What was the purpose of buying the [abovementioned] new equipment and how will it positively impact Kriala's future performance?

After implementation of the mentioned investment, the company plans to increase productivity by about 550-600 tons of hygienic paper per month, as well as to increase product range, which is virtually impossible without modernization. After improving paper production, the plant will be able to produce hygienic paper from preliminary raw cellulose materials (toilet paper, napkins, paper towels), improve the quality of hygienic paper produced from raw and recycled materials (mixed materials)- toilet paper, napkins and paper towels).

Production of high quality hygienic paper made from cellulose raw materials will enable the company to replace imported raw materials with its own production and to sell paper rolls to various competing companies on the local market, at the expense of reducing cost, improving product quality and increasing product range.

After installing these machines, Kriala plans to increase productivity and the quality and range of products, something which will help the company to absorb a significant part of the Georgian market.

What are your company's future plans within the WMTR program? What activities do you plan to promote environment protection in the country?

The plan is to maximize engagement in any type of activity.

We are thinking of raising awareness of the paper waste issue and popularize it in society, to inform the public that one can get books in exchange for paper waste, or plant a tree, get hygienic paper, and so on, to keep the population interested and motivated not to dump paper waste.

About the WMTR program

The WMTR program is implemented by CENN with the support of USAID in three regions – Kakheti, Shida Kartli and Adjara – and in Tbilisi. The program assists the Government of Georgia to modernize the country’s waste management sector and supports sustainable development and inclusive economic growth, ensuring responsible management of natural endowments that will minimize adverse impacts from waste on human health and natural resources.

To support the development of the recycling sector in Georgia, along with other activities, the program is working in the following two directions: development of Waste Management Association and disbursement of grants to recycling companies.

The Waste Management Association of Georgia was established to unite separated waste collection and recycling companies. The association has two main objectives: creating a business-friendly environment for the development of waste recycling and aggregating companies in Georgia through advocating and lobbying key issues for sector development with different interested parties, including decision makers; and developing the capacity of recycling and aggregating companies according to the best international practices.

23 January 2020 16:07