New joint venture formed to build cement plant<\/p>\n
JAKARTA (JP): Korea Development Co. Ltd. (Kodeco), Marubeni
\nCorp. of Japan and Indonesia's Indocement Group set up a joint
\nventure company yesterday to develop and operate a US$488 million
\ncement plant, with an annual capacity of 2.45 million tons in
\nBatulicin, South Kalimantan.<\/p>\n
The joint venture company is 46 percent owned by PT Indocement
\nInvestama, a unit of the Indocement group, five percent by
\nseveral other Indonesian shareholders, 46 percent by Kodeco and
\nthree percent by Marubeni.<\/p>\n
The plant, to be built by Marubeni, is slated to come on
\nstream in 1998.<\/p>\n
An executive of the company said yesterday that $146.4 million
\nof the total investment would be financed with equity capital and
\nthe remaining $341.6 million funded by loans.<\/p>\n
The project, he said, is supported by 1,000 hectares of
\nlimestone deposits, 100 hectares of clay and 1,000 hectares of
\niron sand, all located near Batulicin.<\/p>\n
He said that the plant's production cost would be one of the
\nlowest in Indonesia due to its proximity to raw materials and
\nenergy (coal).<\/p>\n
He said the plant also will use its own specially-designed
\nbulk carriers and seaport.<\/p>\n
The plant is one of 21 projects licensed by the government to
\nexpand the country's cement manufacturing capacity. Most of the
\nother projects are still in various stages of preparations for
\nimplementation.<\/p>\n
Indonesia still partly relies on cement imports because the
\nindustry has not been able to catch up with the high growth in
\ndemand.<\/p>\n
The new plant will further strengthen Indocement's position in
\nthe industry because the group already accounts for more than 40
\npercent of the national capacity.<\/p>\n
However, both Marubeni and Kodeco are newcomers to the cement
\nindustry.<\/p>\n
Kodeco, the first South Korean investor in Indonesia, began
\ninvesting in Indonesia in forest-based ventures, such as logging
\nand sawn timber in the late 1960s. But it has diversified into
\nplywood, the hydrocarbon sector, electronics, container boxes and
\nrubber plantations. (vin)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/new-joint-venture-formed-to-build-cement-plant-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}