Jaya Fibrindo to set up $10m cooling tower plant in W. Java

Jaya Fibrindo to set up $10m cooling tower plant in W. Java

JAKARTA (JP): PT Jaya Fibrindo Karsa Pratama (JFKP) and PT
Tasan Megah signed an agreement here yesterday with Marley
Cooling Tower Company of the U.S. to set up a joint venture
company PT Jaya Marley Indonesia which will build a US$10 million
cooling tower factory in Cikarang, West Java, this year.

JFKP is a fiberglass company and is a subsidiary of PT
Pembangunan Jaya.

The president of Pembangunan Jaya, Ciputra told a news
conference that the building of the high-tech cooling tower plant
is aimed at reducing cooling tower imports from America, Japan
and Europe.

Cooling towers are additions to factories that need to
condense steam or other high temperature substances in the course
of production.

Ciputra said Indonesia will need many cooling towers as there
are now many geothermal power plants being built in Indonesia. He
added that a cooling tower is also an important equipment for
pulp and paper, chemical, petrochemical, plastic and textile
factories.

According to Ciputra, the joint venture agreement was signed
following the success of JFKP in producing cooling towers with
the same quality as the American product at a lower cost.

JFKP's president, Herawati Santosa, said the company has sold
its product to a mining company in Australia, a power station in
the Philippines, and a local pulp and paper company.

The plant construction near Cikarang Industrial Estate will be
completed in about six months.

Production

Herawati said that half of the plant's production will be sold
in the domestic market while another half will be exported,
especially to the Asia-Pacific region.

She added that the plant's cooling towers will be produced 90
percent local goods and services.

Jaya Marley Indonesia is 40 percent owned by JFKP, 40 percent
by Marley Cooling Tower Company and 20 percent by Tasan Megah.

Meanwhile, after the news conference, Ciputra announced that
12 subsidiary companies of PT Pembangunan Jaya will sell shares
in the stock market within the next six years.

He said each company will sell between 15 and 30 percent of
its shares to raise between Rp 2 trillion to Rp 3 trillion for
business expansion.

PT Jaya Real Property, a property developer and another
subsidiary of Pembangunan Jaya, is scheduled to offer 35 million
shares, 14.9 percent of their holdings, to the public this month.

Pembangunan Jaya is 40 percent owned by Jakarta city
administration, while the other 60 percent is owned by
businessmen including Ciputra and Hasjim Ning.(03)