APP builds pulp mill in KL

APP builds pulp mill in KL

KUCHING, Malaysia (JP): North Sumatra-based PT Asia Pulp and
Paper (APP) will team up with Malaysia's Sarawak Timber
Industrial Development Corporation (STIDC) to establish a pulp
and paper production mill in Sarawak.

Ali B. Yusop, an official of the Sarawak State Forests
Department, told Indonesian reporters visiting here this week
that the mill's construction will be based on a memorandum of
understanding signed last year.

The mill will have an annual production capacity of 750,000
tons of pulp and paper.

However, Ali was uncertain on when the project would begin as
negotiations were still going on.

He said the new joint venture -- Borneo Pulp and Paper --
would be based in Bintulu, Sarawak.

The mill will be established with an investment of M$3 billion
(US$1.2 billion), of which 60 percent will come from APP and the
remaining 40 percent from the STIDC, he said. (pwn)