Czech, local firms to build clinker plant
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)