Pulp mill gets raw material from state firm<\/p>\n
JAKARTA (JP): Pulp maker PT Lontar Papyrus Pulp and Paper
\nIndustri, a subsidiary of PT Wira Karya Sakti, has entered into a
\njoint-operation contract with state-owned PT Inhutani V to secure
\nraw material supplies for its Jambi pulp mill.<\/p>\n
Wira Karya's manager, Eddy Makhmud, said over the weekend the
\ncooperation with Inhutani was necessary because Wira Karya's
\nindustrial timber estates were not ready for harvest.<\/p>\n
The timber from Inhutani would come from land-clearing
\nactivities to make way for transmigration sites, he said.<\/p>\n
Eddy said Wira Karya's pulpwood estate would start production
\nin 1998 or 1999.<\/p>\n
The company would start by harvesting 1,000 hectares of the
\n134,500 hectares of pulpwood estates allocated by the government,
\nhe said.<\/p>\n
\"(The small harvest) poses no problem for us because in the
\nnext few years, we will see lots of forests being converted into
\nplantations. So we don't have to worry about raw material supply
\n(for the pulp mill),\" he was quoted by Antara as saying.<\/p>\n
Lontar Papyrus was established in 1992 at a cost of Rp 1.3
\ntrillion (US$541.67 million at the current rate).<\/p>\n
Eddy said the pulp mill would start using raw material from
\nWira Karya's pulpwood estates in 2005.<\/p>\n
Eddy said the mill, which started operating in 1994, had a
\nproduction capacity of 430,000 tons a year. This required 2.5
\nmillion cubic meters of pulpwood a year as raw material.<\/p>\n
He said that by boosting efficiency, the mill's annual
\nproduction capacity could be increased to 500,000 tons.<\/p>\n
Lontar Papyrus sells about half of its products domestically
\nmarket and exports the rest to Italy, Scandinavia and elsewhere.
\n(pwn)<\/p>\n
Table: Indonesia's pulp and paper industry in 1996<\/p>\n
No.of Installed capacity
\n Status and location mills --------------------------------<\/p>\n
Pulp Paper Pulp Paper<\/p>\n
(tons p.a) (tons p.a) (%) (%)
\n ==========================================================================
\n State enterprise 3 240,000 322,900 8.3 5.3
\n Private Company Domestic Investment 62 335,400 3,749,600 11.6 61.9
\n Private Company Foreign Investment 11 2,323,000 1,987,600 80.1 32.8
\n --------------------------------------------------------------------------
\n Total 76 2,898,400 6,060,100 100 100<\/p>\n
Integrated (pulp and paper) mills 11 1,438,800 1,330,100 49.6 21.9
\n Non integrated mills: - paper 61 -- 4,730,000 -- 78.1<\/p>\n
- pulp 4 1,459,600 -- 50.4 --
\n --------------------------------------------------------------------------
\n Total 76 2,898,400 6,060,100 100 100<\/p>\n
Java 63 323,800 5,585,900 11.3 92.2
\n Sumatra 12 2,530,000 472,200 87.3 7.8
\n Kalimantan 1 39,600 -- 1.4 0
\n --------------------------------------------------------------------------
\n Total 76 2,898,400 6,060,100 100 100
\n ==========================================================================<\/p>\n
Source: Indonesian Paper Trade Directory, Indonesian Pulp and Paper
\nAssociation<\/p>",
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