Conveyor part plant starts production here<\/p>\n
CILEGON, West Java (JP): PT Prok Indonesia, a joint venture
\nbetween Australian and Indonesian companies, yesterday
\ninaugurated its conveyor component production plant here.<\/p>\n
"The initial output of the factory is 1,500 idlers a week,
\nconsisting of rollers and frames," Brian Knuckey, the operation
\nmanager of Australia's Prok Group Limited, told The Jakarta Post.<\/p>\n
He said the output will increase to 4,000 rollers a week, or
\nabout 144,000 per annum, when all production equipment has been
\ninstalled.<\/p>\n
Neil Mackenzie, managing director of Prok Group, said that
\nProk Indonesia is the first foreign company to produce conveyor
\ncomponents in the country.<\/p>\n
Prok Indonesia, set up in 1990 with an investment of US$35
\nmillion, is 70 percent owned by Prok Group, 25 percent by PT
\nKrakatau Industrial Estate, a subsidiary of state-owned PT
\nKrakatau Steel, and 5 percent by PT Ideco Utama, a private
\ncompany.<\/p>\n
"Prok Group is a major producer and supplier of conveyor
\ncomponents in the world, whose competitors are Japanese and
\nGerman companies," said Mackenzie.<\/p>\n
He said Prok Group has so far supplied conveyors to Indonesian
\ncement plants, coal mines and terminals, nickel mines as well as
\nmanufacturing companies.<\/p>\n
He said that establishing the factory here will make Prok
\nGroup's products more competitive.<\/p>\n
"It is about 10 percent cheaper to manufacture conveyor
\ncomponents in Indonesia than shipping them from Australia," said
\nMackenzie.<\/p>\n
"It is possible the Cilegon factory will be the major conveyor
\nproducer in the world due to the massive labor and raw materials
\navailable here as well as the lower costs," said Mackenzie.<\/p>\n
Currently some 50 percent of the materials for the new
\ncompany's production are still imported from Australia.<\/p>\n
"The local contents of the products will increase to about 80
\npercent when the Cilegon factory produces pulleys, the main
\nconveyor components," Mackenzie said.<\/p>\n
He said the market outlook in Indonesia is very promising
\nbecause the surge of investment in infrastructure and industry is
\ncreating greater demand for bulk material handling systems.<\/p>\n
According to Mackenzie, the factory's output will go mainly to
\nthe domestic market.(kod)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/conveyor-part-plant-starts-production-here-1447893297",
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