U.S. cities considered for IPTN's plants<\/p>\n
JAKARTA (JP): President Soeharto is considering Mobile in
\nAlabama or Macon in Georgia as the site for the new PT Industri
\nPesawat Terbang Nusantara (IPTN) assembly plant in the United
\nStates, State Minister of Research and Technology B.J. Habibie
\nsaid here yesterday.<\/p>\n
"After consulting with experts from the United States, the
\nPresident has narrowed down the choices of potential sites for
\nIPTN's investment to either Mobile in Alabama or Macon in
\nGeorgia," Habibie, also IPTN's president, told reporters after a
\nfour-hour meeting with Soeharto at the Bina Graha presidential
\noffice.<\/p>\n
"The final decision will be reached in April," he said, adding
\nthat he is now studying various procedures on labor, the
\nenvironment and infrastructure in the two cities.<\/p>\n
IPTN is planning to invest at least US$12 million to construct
\nits N-250 propeller aircraft in the United States, a move
\nintended to capture the North and Central American markets for
\ncommuter aircraft.<\/p>\n
Habibie recently said that five states were interested in
\nbecoming the site for IPTN's ambitious project, including
\nArkansas, Oregon, Alabama and Utah.<\/p>\n
"In order to build N-250s in the United States, IPTN has
\nplanned to set up a joint-venture company called the American
\nRegional Aircraft Industries, in which IPTN will hold 40 percent
\nof its total common shares," Habibie said, adding that several
\nforeign aircraft manufacturers and banks have shown interest in
\nbecoming partners with IPTN.<\/p>\n
He said that the N-250, which can accommodate 70 passengers,
\nwill be priced at $13.5 million each.<\/p>\n
The minister said that he is confident with this project
\nbecause the "N-250 will be built with 1990s technology."<\/p>\n
"The only competitor that IPTN has in constructing this type
\nof aircraft is Aeorospatiale of France, whose technology is not
\nas recent as ours," he said.<\/p>\n
Difficulties<\/p>\n
The minister also conceded yesterday that IPTN's main hurdle
\nto export its products is the fact that it cannot give its
\npotential consumers export-credit facilities.<\/p>\n
"This is one of our most serious handicaps because no one pays
\ncash when buying aircraft," he said.<\/p>\n
By investing directly in the United States, IPTN will overcome
\nthe handicap, he said.<\/p>\n
Habibie explained that he has projected, based on the most
\nconservative assumptions, that 225 commuter aircraft like the N-
\n250 model will be demanded annually for the next two decades.<\/p>\n
"If we assume that we can meet only one third of that demand
\nevery year, it means that seventy five N-250s will be sold every
\nyear," he said.<\/p>\n
Habibie said that IPTN only needs to cover 10 percent of the
\nworld demand for commuter aircraft like the N-250 to break even.
\n(hdj)<\/p>",
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