Czech, local firms to build clinker plant

JAKARTA (JP): PSP Company, a major Czech manufacturer of industrial machinery, and PT Balik Papan Daya Semen of Indonesia agreed yesterday to jointly construct a clinker plant in East Kalimantan.

The signing of the memorandum of understanding was witnessed by visiting Czech Prime Minister Vaclav Klaus.

The Czech company also signed a memorandum of understanding with Nitro Business Consultant Group, allowing the latter to provide technical assistance for GSP's operation in the country.

Mario Teguh, an executive of the Czech consulting firm, said that the cement plant to be established by PSP and Balik Papan Daya Semen will annually produce around 300,000 tons of clinker, material used to make cement.

Some 75 percent the plant's products will be exported to neighboring countries and the remainder will be sold to local cement producers, he said.

He declined to reveal the investment commitment of the new joint venture but estimated that a cement plant with a production capacity of one million tons would require a fresh investment of between US$180 and $200 million.

Mario also said that PSP Company is still negotiating with local companies to establish three cement factories in the country.

"One of the planned factories will be in Java and the other two outside Java," he said. He refused to provide details of the planned factories.

Some provinces in Indonesia are short of cement supplies and prices, therefore, have increased to levels far higher than price references set by the government.

The Czech prime minister, who arrived here Monday for a three- day visit, offered Indonesia the chance to cooperate in the construction of power generation plants, steel mills and industrial machinery plants.

The offer was made during the prime minister's meeting with President Soeharto.

Speaking to reporters following the meeting, Minister/State Secretary Moerdiono said that the two heads of state also discussed the possibility of enhancing bilateral trade cooperation.

Moerdiono said that the Czech prime minister offered Indonesia to use his country as the gateway for Indonesian exports to Europe.(hen)