RI firm builds pulp and paper mill in Sarawak<\/p>\n
JAKARTA (JP): The Raja Garuda Mas Group said yesterday that it
\nhad started the construction of a US$1.3 billion joint-venture
\npulp and paper mill with PWE Industries Berhad of Malaysia in the
\nSarawak city of Bintulu, Malaysia.<\/p>\n
The construction of the pulp and paper mill, called Sarawak
\nPulp and Paper, will be launched by the Malaysian Prime Minister
\nMahathir Mohamad on Saturday.<\/p>\n
Raja Garuda Mas, according to the company's statement, owns 55
\npercent of the joint venture, with PWE Industries holding the
\nremaining 35 percent.<\/p>\n
PWE Industries is a subsidiary of the Ekram Group, which is
\ncontrolled by the Malaysian tycoon Tan Sri Ting Khiing.<\/p>\n
The chairman of the Raja Garuda Mas Group, Sukanto Tanoto,
\nsaid that in the first phase of operation, Serawak Pulp & Paper
\nwill produce 750,000 tons of pulp per annum.<\/p>\n
"In the next phase, we will set up another integrated pulp and
\npaper mill to produce uncoated paper with an annual capacity of
\n300,000 tons per annum," Sukanto said.<\/p>\n
Sukanto said that the group's expansion to Malaysia is in line
\nwith his business strategy to become a global player in the pulp
\nand paper industry.<\/p>\n
"It is becoming more urgent for us to anticipate the era of
\nfree trade in Southeast Asia and the Asia Pacific region, with
\nthe ASEAN Free Trade Area (AFTA) and APEC agreements coming into
\neffect," he noted.<\/p>\n
The Sarawak pulp and paper mill, Sukanto said, will use wood
\nchippings from timber cleared on the 69,000-hectare area near the
\nmill for its raw materials.<\/p>\n
The Malaysian government is set to clear the area for the
\nconstruction of the Bintulu Dam hydroeletrolic power station.<\/p>\n
"But in the long-term raw materials will be supplied by
\nEkran's industrial forests," he said.<\/p>\n
The biggest paper producer in Malaysia at present is Genting
\nSanyen with a total capacity of approximately 250,000 tons per
\nannum.<\/p>\n
The Raja Garuda Mas Group has already entered the pulp and
\npaper industry through PT Inti Indorayon Utama in North Sumatra
\nand PT Riau Andalan Pulp & Kertas in Riau.<\/p>\n
Recently, Riau Andalan started the construction of a US$630
\nmillion paper plant in Kampar, Riau.<\/p>\n
Sukanto added that he would employ Indonesian management. (08)<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/ri-firm-builds-pulp-and-paper-mill-in-sarawak-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }