Since the day it is invented till today, paper is a part of human life in various ways and it is gaining even more popularity as years go by. As the consumption of paper has been increasing, the problem of sourcing raw material is emerging. As a result, natural resources are being exploited. Recycling of paper has become vital since the demand for paper has increased and natural resources are being exploited. In this study, paper industry is analyzed in regard to recycling and the process of producing paper in a recycling factory and proportional weighted costs of recycling are presented. Thus it is intended to assist managers of waste paper recycling factories to make strategic plans and also those who will start up new factories. Study concludes that weight of waste paper as a raw material within the costs of factory is 43%.