Fajar Surya to boost output

JAKARTA: Publicly listed packaging paper producer PT Fajar Surya Wisesa secured US$72 million in syndicated loans on Monday to finance the construction of a new paper machine to help boost output.

The expansion, scheduled for completion by 2006, will raise the company's annual production capacity from 500,000 tons currently to 700,000 tons of packaging paper, according to a media statement.

"This expansion plan will help us meet demand for industrial and display packaging. As our existing operations with the new paper machine will rely almost entirely on waste paper as a raw material," said President Director Winarko Sulistyo.

At present, some 97 percent of the company's raw materials are generated from recycled waste.

The loan facility was arranged by UOB Asia Limited. -- JP