KL firm forms RI venture

KL firm forms RI venture

KUALA LUMPUR (Reuter): Malaysian cement and timber firm Tengggara Capital Bhd has signed a joint-venture agreement with P.T. Samana Citra Agung to undertake a US$450 million cement plant project in Indonesia.

In a statement, Tenggara said the 50-50 joint-venture company will participate in conducting a feasibility study and the planning, installation and commissioning of a three million ton integrated cement plant in Aceh, Indonesia.

The project cost will be financed by internal funds and borrowings, it said.

The plant will be used to manufacture cement for distribution and sale in Indonesia and Malaysia.

Tenggara said the project is of strategic importance to its future role as a major cement producer in the Southeast Asian region.