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Foreign firms seek participation in IPTN facility in U.S.: Habibie

| Source: JP

Foreign firms seek participation in IPTN facility in U.S.: Habibie

JAKARTA (JP): State Minister for Research and Technology B.J.
Habibie announced here yesterday that at least three foreign
companies have proposed to participate in the PT Industri Pesawat
Terbang Nusantara's (IPTN) planned production facility in the
United States.

"Even though IPTN has not yet announced plans on partnership,
a European financial institution and two avionics manufacturers
have submitted proposals to participate in its production
facility to be set up in the United States," Habibie told a press
conference after opening a seminar on the aircraft maintenance
industry here yesterday.

He refused to name the three companies.

The two-day seminar is organized by the Indonesian Aircraft
Maintenance Shop Association (IAMSA).

The planned U.S. facility is expected to produce N-250, a 70-
passenger aircraft wholly designed by Indonesians.

"When I visited Japan last week, Itochu, a leading trading
company in the world, also asked me for a joint cooperation,"
Habibie said.

He also said that IPTN, planning to control a stake of about
51 to 60 percent of the facility, actually wants to be
independent in deciding the site of the production facility.

"If we announce the chance for partnership now, participating
parties will absolutely want to get involved in choosing the
site," he said. "President Soeharto is expected to decide on the
site later this year."

States

Habibie, who is also IPTN's president, visited the United
States last month and met with several governors, including those
from Oregon, Kansas, Arizona, Alabama, Utah, Oregon and Ohio.

The governors, according to Habibie, want IPTN to set up the
planned production facility in their states.

Habibie said that the international market will need some 225
aircraft the size of the N-250.

He also said that after the establishment of its plant in the
U.S., IPTN will be able to produce one aircraft every two days,
of which 50 percent will be marketed in North America.

According to Habibie, the planned assembly plant, to be
constructed with an investment of US$100 million, will provide
quicker and cheaper deliveries.

IPTN's first N-250 aircraft is scheduled to be introduced in
November to coincide with the second leadership meeting of the
Asia Pacific Economic Cooperation (APEC) forum in Jakarta. The
aircraft will fly next April and be internationally certified in
1997.

Habibie said three domestic air carriers, Merpati, Sempati and
Bouraq, have ordered 165 N-250 aircraft, while a European leasing
company has ordered 24 more.(icn)

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