Karnaphuli Paper Mills

The 1949 Industrial Conference recommended that a pulp and paper mill be set up in East Pakistan in an effort to make Pakistan self-sufficient in paper. In mid-February 1950, the government's Development Board approved the construction of the mill on the Karnafuli River. In 1954, there were violent riots between Non-Bengali and Bengali workers.

Chandragona, 26 miles upstream from Chittagong, was selected as the site because of ample availability of bamboo and water there, and ready transportation through Chittagong Port. The mill was designed to produce 30,000 tons of high quality paper annually. By January 1952, a water supply plant, power plant, and company housing had been built, and construction of the mill proper was underway. Karnaphuli Paper Mills began operating in 1953, run by the Pakistan Industrial Development Corporation, a government-owned corporation.

The Dawood Group took over the management from PIDC on 1 October 1959 and began expanding the mills' capacity to meet rising demand. After the Independence of Bangladesh the company was taken over by Bangladesh Industrial Development Corporation.

As of 2016, it is the largest paper producing factory in Bangladesh and operates as a subsidiary of Bangladesh Chemical Industries Corporation.

In 2016, it faced criticism for not having an effluent treatment facility.