Asian pulp giants to set up new mill<\/p>\n
SINGAPORE (AFP): Asia's leading pulp and paper producers,
\nIndonesia's APRIL Group and South Korea's Hansol Paper Co. Ltd.
\nagreed yesterday to jointly invest in a US$600 million-to-$650
\nmillion paper mill project.<\/p>\n
The Asia Pacific Resources International Holdings Ltd. (APRIL)
\nwill have a 70 percent interest while Hansol will take the
\nremaining equity in the so-called Riaupaper project in Sumatra,
\nIndonesia, officials said.<\/p>\n
As APRIL is a leading pulp producer and Hansol a major paper
\nproducer, the joint venture would give them a toehold in the
\nregional market, they said.<\/p>\n
"This is an ideal joint venture maximizing the combined
\nstrengths of both parties in technology, marketing, fiber supply
\nand low-cost production -- the four key elements in a successful
\npaper project," said Dong Kil Cho, executive vice-president of
\nHansol.<\/p>\n
A joint venture agreement on the paper mill project was signed
\nhere yesterday between Dong and APRIL's deputy chairman Polar
\nYanto Tanoto.<\/p>\n
"Through this strategic alliance, we are well positioned to
\nfill the continuous growing demand for paper and paper products
\nbecause of buoyant economic growth in Asia," Tanoto said.<\/p>\n
APRIL will supply Riaupaper with paper pulp from its adjacent
\nRiaupulp mill in Indonesia while Hansol will provide technical
\nand advisory support to APRIL in developing the paper mill.<\/p>\n
Hansol, South Korea's largest paper producer and listed on the
\nKorean Stock Exchange, would take 30 percent of the production
\nfrom the "world class paper mill" to be marketed abroad, Dong
\nsaid.<\/p>\n
He added that the project marked a major step in Hansol's
\nglobalization strategy to double its current paper and board
\nproduction capacity of two million tons to over four million
\ntons a year by 2001.<\/p>\n
"While some may view this goal as too ambitious, we have in
\nfact grown four times in last five years, from half a million
\nton capacity in 1991 to two million tons capacity in 1996," Dong
\nsaid.<\/p>\n
Initial work on the Indonesian plant, to produce 600,000 tons
\nof paper a year when completed at the end of 1997, has already
\nbegun, officials said.<\/p>\n
"Given the projected soaring demand for paper and paper
\nproducts in Asia, we are confident that the synergies between
\nAPRIL and Hansol will enable us to capitalize on the enormous
\nmarket potential and enhance our market share in the region,"
\nAPRIL's group finance director Berry Kwock said.<\/p>\n
APRIL, whose corporate and administrative offices are in
\nSingapore, is a key Asian producer of pulp, paper and rayon
\nfiber.<\/p>\n
It effectively controls two major companies in Indonesia: PT
\nInti Indorayon Utama -- a special pulp and rayon fiber producer
\nlisted on the Jakarta and Surabaya stock exchanges -- and PT Riau
\nAnadalan Pulp and Paper which operates a 750,000-ton a year pulp
\nmill.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/asian-pulp-giants-to-set-up-new-mill-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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