Apac to build power plant to cut production costs<\/p>\n
JAKARTA (JP): Publicly-listed PT Apac Centertex Corp., a
\ngarment producer, plans to build a 100 megawatt (MW) cogeneration
\npower plant in Bawen, Central Java, soon to reduce its production
\ncosts.<\/p>\n
\"By building our own power plant, we'll be able to generate
\ncheaper electricity and at the same time produce steam for our
\ntextile plants,\" company president Benny Soetrisno said
\nyesterday.<\/p>\n
Apac signed an agreement yesterday with East Asia Power
\nResources Co. of the Philippines and PT Super Indah Makmur to
\ndevelop the US$100 million power plant.<\/p>\n
He said Apac and the two companies had set up an equally-owned
\nventure, PT Vita Daya Harapan, to own the power plant.<\/p>\n
He said PT Vita Daya Harapan would build the cogeneration
\npower plant under a 20-year build, operate and transfer scheme
\nwith PT Apac. The plant will burn gas from Shell Mulia on the
\nnorthern coast of Central Java.<\/p>\n
The power station will initially have an installed capacity of
\n50 MW but this will double in 1999, he said.<\/p>\n
\"Currently, we need between 40 MW and 50 MW, our power demand
\nwill increase to about 70 MW. So we'll have a reserve of about 30
\nMW,\" he said.<\/p>\n
The $100 million investment will be 75 percent funded by a
\nsyndicated loan from foreign and local banks and 25 percent by
\nequity funds.<\/p>\n
He said the electricity would be sold to PT Apac for $0.06 per
\nkilowatt hour (kWh), while the steam, which is now produced by
\nburning oil, would cut about $12 an hour off operation costs.<\/p>\n
\"The power plant will produce about 25 tons of steam an hour,\"
\nhe said.<\/p>\n
He was confident the cost savings would help PT Apac, which
\nsuffered a Rp 2.93 billion ($1.3 million) operating loss last
\nyear.<\/p>\n
PT Apac Centertex received Rp 408 billion in fresh funds from
\nits rights issue in July. The company acquired a 94.12 percent of
\nPT Apac Inti Corpora in August.<\/p>\n
PT Apac Centertex is controlled by Johannes B. Kotjo and
\nBambang Trihatmodjo, the second son of President Soeharto. PT
\nSuper Indah Makmur, a packaging subsidiary of engineering company
\nVan der Host, is owned by Johannes B. Kotjo. (bnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/apac-to-build-power-plant-to-cut-production-costs-1447893297",
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"sponsor": "Okusi Associates",
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