Riau pulp's production falls 13 percent, says ARH<\/p>\n
SINGAPORE (Dow Jones): PT Riau Andalan Pulp & Paper's bleached
\nhardwood kraft pulp production in Indonesia fell 1.3 percent to
\n158,233 metric tons in the second quarter of this year from the
\nfirst quarter, according to a press release by Asia Pacific
\nResources International Holdings (ARH) Wednesday.<\/p>\n
The first quarter's production was 160,357 tons.<\/p>\n
Singapore-based Asia Pacific Resources International, also
\nknown as April, owns 98.5 percent of PT Riau Andalan Pulp &
\nPaper, or Riaupulp.<\/p>\n
In the second quarter, around 38 percent of Riaupulp's
\nproduction was sold to Riau Andalan Kertas, or Riaupaper, and the
\nChangshu mill in Suzhou, China. April owns 99.8 percent of
\nRiaupaper through its subsidiary April Fine Paper. It also owns
\n49 percent of the Changshu mill.<\/p>\n
Riaupulp's major markets are Australia\/Asia, Europe and
\nIndonesia.<\/p>\n
Riaupulp took eight days of scheduled annual maintenance
\ndowntime in the second quarter, but is on target to achieve BHKP
\nproduction of about 760,000 tons in 1999, the release said.<\/p>\n
To reach its longer-term goal capacity of two million tons a
\nyear, Riaupulp is expanding its existing pulp line and in the
\nprocess of building a second line.<\/p>\n
In the expansion of the current pulp line, it is targeting an
\nincrease in production capacity to 850,000 tons\/year.<\/p>\n
April plans to build the second pulp line in two phases. The
\nfirst phase, which is half completed, is targeted to produce
\n450,000 tons\/year, raising total production to 1.3 million
\ntons\/year when completed.<\/p>\n
Construction will take 18 months after the successful
\nconclusion of financing, currently being negotiated, according to
\nan April spokesman.<\/p>\n
Construction of the line stopped last year as financing ran
\nout with the onset of the Asian economic crisis, he said.<\/p>\n
This line is expected to cost around US$520 million, or
\nUS$1,155 per annual installed ton. So far, about US$174 million
\nhas been spent, financed largely by equity contributions from
\nApril.<\/p>\n
The management expects the remaining US$350 million to be
\nfinanced by existing lenders, cashflow from operations post-debt
\nrestructuring, as well as customers, suppliers or additional
\nequity contributions, the release said.<\/p>\n
According to the release, April has been selling BHKP at up to
\nUS$520 a ton, cost and freight basis, North American ports.<\/p>\n
April, which has an \"extremely low\" inventory, hasn't observed
\nany weakening of the pulp market despite the typical seasonal
\nslowdown due to the summer holiday, the release said.<\/p>\n
The average price April received for third-party sales was
\n$437\/ton, on a cost, insurance and freight basis, in the second
\nquarter, up $67\/ton from the first quarter.<\/p>\n
Riaupaper's uncoated wood-free paper production rose 11
\npercent to 60,027 tons in the second quarter from the first
\nquarter's 53,935 tons.<\/p>\n
About 45 percent of second-quarter production was cut-size
\npaper and 20 percent offset\/folio, with the rest being reel
\nformat.<\/p>\n
Riaupaper plans a maintenance downtime of three to four days
\nin the third quarter, but is on target to produce about 250,000
\ntons this year, the release said.<\/p>\n
It posted sales of 59,433 tons of UWF paper in the second
\nquarter, up 14 percent from the 52,052 tons in the first quarter.<\/p>\n
Approximately 44 percent of the second quarter's sales were
\nmade through April's partners.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/riau-pulps-production-falls-13-percent-says-arh-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}