Consumption of paper is considered as one of the indices of the general progress of any country both in the cultural and industrial field. The per capita consumption of paper in developed countries varies from 200-300 Kg. Even in developing countries the figure is in the range of 10-40 Kg. In Bangladesh, the per capita consumption of paper is below 1.0 Kg. This lower rate is mainly attributable to low literacy rate and neutralizing effect of the high rate of population growth.

The paper sector in Bangladesh was so far dominated by public sector. But with the liberal and pragmatic industrial policy pursued by the government, quite a number of paper mills in the private sector have been set up in the country and many more are coming up.

The exiting paper mills in the country are traditionally producing mainly cultural grades of paper. Magura Paper Mills Ltd. (MPM)is the first project in the country, which is producing Kraft liner and fluting medium essentially required for manufacturing corrugated cartons. The demand of these grades of paper is rising at a faster rate consistent with the increase in export of garments and shrimps. The project has created direct job opportunity for 500 people. There is net saving of F.E. to the tune of US $ 10 million annually. The project is significantly contributing to the economic development of the country.

Constructed by highly qualified local engineers and technicians with the supervision of Chinese Engineers, the plant has been set up on 15 acres of land at New Town, Meghna Ghat in Narayangonj on the Dhaka-Chittagong highway. The plant is capable to produce 22000 MT of industrial grade paper per annum.