Indorayon buys Kemira

JAKARTA (JP): Asia Pacific Forest Products Ltd., a subsidiary of PT Inti Indorayon Utama (Indorayon) has acquired 100 percent of the shares of Finnish viscose fiber producer Kemira Fibers Oy.

Indorayon director Brett G. Hutton said in a statement sent to The Jakarta Post yesterday the acquisition of the third largest European viscose fiber producer was completed May 1.

He said Indorayon would benefit from Kemira's expertise in fiber product technology and its European market.

Kemira is reportedly Europe's third largest producer of viscose fiber for textile and non-woven application with an annual production capacity of 65,000 tons.

Indorayon is a major manufacturer of paper pulp and rayon fiber in North Sumatra with an annual capacity of 240,000 tons of market pulp, including 180,000 tons of dissolving pulp and 60,000 tons of rayon fiber.

The company, listed on the Jakarta and Surabaya stock exchanges, is 61.3 percent owned by Asia Pacific Resources International Ltd which is listed on the New York Stock Exchange. (jsk)