Batavindo gets $23 million loan<\/p>\n
JAKARTA (JP): PT Batavindo Kridanusa, a Bukaka group
\nsubsidiary, secured a US$23 million loan yesterday from
\nIndonesian and foreign banks to finance the construction its
\nepoxy resin plant -- the country's first.<\/p>\n
Batavindo president commissioner Fadel Muhammad said the five-
\nyear loan's interest rate would float 1.7 points above the
\nSingapore Inter-bank Offered Rate.<\/p>\n
The loan was lead arranged and lead managed by Dresdner
\n(Southeast Asia) Limited with Giro Credit Bank Aktiengellschaft
\nder Sparkassen, the Development Bank of Singapore Limited and Hua
\nNan Commercial Bank Limited acting as managers.<\/p>\n
Other banks in the syndicate include PT Bank Ficorinvest, Bank
\nNusa Internasional, Bank Universal, Bank Dagang and Industri,
\nBank Dharmala and Prima Ekspress.<\/p>\n
Fadel said construction would cost $33 million, with $10
\nmillion financed by equity.<\/p>\n
Fadel said the plant, to be built by RHE of Germany, in West
\nJava would have a 7,300-ton annual capacity, comprising 3,500
\ntons of liquid epoxy resin, 1,500 tons of solid epoxy resin and
\n2,300 tons of blending resin.<\/p>\n
Scheduled to open in mid-1998, the factory is expected to
\nexport 40 percent of its output to ASEAN countries.<\/p>\n
Fadel said the plant's annual capacity would be expanded to
\n20,000 tons by 2003.<\/p>\n
Indonesia imported 7,200 tons of epoxy resin worth $22 million
\nlast year, and domestic demand for it is estimated to increase 15
\npercent a year, Fadel said.<\/p>\n
Derived from petrochemicals, epoxy resin is used for coatings
\nand adhesives in automotive, electronics, civil engineering,
\nelectric, printing and automotive industries.<\/p>\n
The only other ASEAN country producing epoxy resins is
\nThailand, which produces up to 10,000 tons yearly.<\/p>\n
Batavindo vice president Suharso Monoarfa said the company's
\nproduct would be highly competitive overseas because the plant's
\ncapital costs would be cheaper than those in other countries.<\/p>\n
Monoarfa estimated the company would sell its epoxy resin for
\n$4 a kilogram, compared to the current international price of
\nof $5.2 a kilogram.<\/p>\n
He said Bukaka Korporindo and Fadel owned 20 percent and 30
\npercent of the company respectively, with several others owning
\nthe remaining 50 percent. (01)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/batavindo-gets-23-million-loan-1447893297",
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