PT Riau Andalan to construct new paper mill in 1996<\/p>\n
KAMPAR, Riau (JP): PT Riau Andalan Pulp and Paper will embark
\nnext year on the construction of a paper mill nearby its pulp
\nplant here which started trial production a few months ago.<\/p>\n
Daulat Tarigan, a manager of the company, told journalists
\nover the weekend that the paper mill, which will have a designed
\nproduction capacity of 250,000 tons per annum, will need a total
\ninvestment of Rp 1.795 trillion (US$788 million).<\/p>\n
\"The paper mill is expected to come on stream later in 1997,\"
\nDaulat said, adding that a portion of the paper output will be
\nexported.<\/p>\n
Some $150 million of the investment for the paper mill has
\nbeen raised from the initial public offering of its holding
\ncompany, Asia Pacific Resources International Holdings Ltd.
\n(APRIL), on the New York Stock Exchange last March.<\/p>\n
APRIL, which has an administrative office in Singapore, is
\ncontrolled by Sukanto Tanoto, chairman of the widely-diversified
\nRaja Garuda Mas Group.<\/p>\n
Sukanto set up APRIL in a joint venture with foreign investors
\nby transferring to it his controlling interests (61 percent) in
\nPT Inti Indorayon Utama, a publicly-listed pulp and rayon company
\nin North Sumatra, and 99 percent of his equity stake in PT Riau
\nAndalan Pulp and Paper.<\/p>\n
Riau Andalan's pulp mill currently produces some 1,200 tons to
\n1,500 tons of short-fiber pulp per day. By next year, the pulp
\nmill, which has an installed production capacity of 750,000 tons
\nper annum, is expected to produce up to 2,000 tons per day,
\naccording to Daulat.<\/p>\n
Export<\/p>\n
The pulp mill, besides selling on the domestic market, also
\nexports a portion of its output to countries in East Asia and
\nEurope.<\/p>\n
\"We are also studying the possibility of marketing our pulp in
\nNorth America as we want to focus our marketing strategy on the
\nAsia-Pacific region,\" Daulat added.<\/p>\n
Paper industry analysts estimate that the region is a net
\nimporter of 5.5 million tons of pulp annually and, as the per
\ncapita consumption rises, paper production throughout the region
\nis expected to soar by some 2.4 million tons per annum.<\/p>\n
Daulat explained during the first few years, and until its
\n180,000 hectares of timber estates are fully developed, the pulp
\nmill is using wood wastes from the local forests and from land
\nclearing work.<\/p>\n
Izardi, another executive of the pulp mill, said the company
\nhad thus far developed some 25,000 hectares of timber estates,
\nwhich will be ready for harvesting by 2002.<\/p>\n
He added that the pulp mill, which uses Finland's latest pulp-
\nproduction technology, is self-sufficient in energy. It uses both
\nbark and wood wastes as fuel for power generation, which uses
\nsteam driven turbines.<\/p>\n
In addition, Izardi explained that the pulp plant also
\nproduces its own process chemicals at an integrated chemical
\nplant on the mill site.<\/p>\n
Izardi said the company had invested some US$50 million for
\nthe development of a waste water treatment facility to ensure
\nthat the wastes it produces does not endanger people or the
\nenvironment because such pulp milling consumes a relatively lot
\nof water.<\/p>\n
Izardi said the pulp mill currently produces some 50,000 cubic
\nmeters of waste water per day, while the waste treatment facility
\nhas a designed capacity to process 100,000 cubic meters of waste
\nwater per day.<\/p>\n
\"Our environmental protection standards conform to those
\napplied in North America and Europe and stand up to close
\ncomparison with the best industry practices on a global basis,\"
\nIzardi said. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/pt-riau-andalan-to-construct-new-paper-mill-in-1996-1447893297",
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