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.