Cashew nut plan in E. Java

Cashew nut plan in E. Java

JAKARTA (JP): PT Elang Agrochemical Industry (Elang ACI), an Indonesian-Japanese joint venture, will develop two cashew nut and cashew oil processing plants in East Java with respective production capacities of 1,250 tons and 500 tons per year.

"The first stage development of the plants is slated for completion in January and will need an investment of US$18 million," said Elang Agrochemical Industry President Koji Nakatsugawa after signing the financing package agreement for the project yesterday.

The joint venture company is 70 percent owned by PT Elang Prima Sentosa, a subsidiary of the Elang Group, 15 percent by Cashew Company Ltd and 15 percent by Sampo SKK Japan Ltd., both of Japan

According to Koji, US$6 million of the total investment will be derived from the company's own equity and the rest will be funded by a loan syndication of Nissho Iwai Corporation -- a financial institution of Japan -- and a number of local banks.

He said that his company will start the development of the plants in April. "We hope that the plants will start operation early next year." (13)