Garuda Mas's projects

Garuda Mas's projects

SINGAPORE (Reuter): Asia Pacific Resources International
Holdings Ltd (April), a unit of the Raja Garuda Mas Group, said
yesterday it plans to set up two new paper mills in Changshu,
China.

The Indonesian paper and pulp group, which is headquartered in
Singapore and listed on the New York Stock Exchange, said in a
statement the new mills will be wholly-owned subsidiaries.

Total investment in the mills, which should start commercial
production in 1998, would be approximately US$430 million. Each
will produce 160,000 tons per year of coated paperboard and
uncoated woodfree paper.

The statement accompanied the release of the group's 1995
year-end results where net income rose to US$40.8 million against
a loss of US$19.2 million reported in 1994.

April said it was setting up the new Changshu mills due to
slower than expected progress on its two existing China joint-
ventures.

It said its Hangzhou Paper Mill project had yet to receive
approval from the Chinese authorities and its Chinese partner in
the Suzhou joint venture had not been able to raise the required
financing for its 25 percent equity in the project.

A company official said the firm was not pulling out of the
Hangzhou project but wanted options.