Fertilizer firms to build new plants

JAKARTA (JP): State-owned fertilizer producers PT Pupuk Iskandar Muda (PIM), PT Pupuk Kalimantan Timur (Kaltim) and PT Pupuk Kujang will build three new plants worth US$924.7 million to increase domestic production of urea.

The plants are PIM 2, which will cost $308.1 million; Kaltim 4 ($312 million) and Kujang 1B ($304.6 million), Antara reported.

Of the total investment, $477.47 million will be derived from export credits, and the remainder from the companies' own capital and other commercial loans.

The plants are scheduled to be completed by 2002, with total combined production capacity of 1.8 million metric tons a year.

With the additional production, national annual urea production capacity will total 8 million tons by 2002.

After its new plant operates, PIM in Aceh is estimated to have a total production capacity of 1.2 million tons a year and 720,000 tons a year of amonia.

Kaltim will be able to produce 2.95 million tons of urea a year and 1.75 million tons of ammonia a year.

Pupuk Kujang's production of urea will remain at 570,000 tons a year and its production of ammonia at 330,000 tons year because the new manufacturing plant will replace the current one.

PIM 2 plant will be constructed by PT Rekayasa Industry and Japan's Toyo Engineering Corporation, Kaltim 4 by PT Rekayasa Industry and Japan's Mitsubishi Heavy Industry Ltd, and Kujang 1B by Toyo Engineering Corporation. (das)