Kobe to build RI plant

Kobe to build RI plant

TOKYO (AFP): Japan's Kobe Steel Ltd. said yesterday it would build a 1.5 billion yen (US$13 million) spunbond plant in Indonesia for PT Multi Spunindo Jaya.

Kobe Steel said in a statement the plant would have capacity to produce 3,500 tons of non-woven polypropylene (PP) and polyethylene terephtalate (PET) a year.

Construction of the plant was expected to begin in early 1998, with production to start from mid-1998, it said.

Spunbond sheet and fabric are used for such products as surgical caps and masks, disposable diapers, as plantcovers in greenhouses, roofing, clothing and household goods.

Kobe Steel said abut 50 percent of the output would be exported to other Asian countries, including Japan, with the rest for domestic consumption.

It said spunbond demand was growing at six-to-10 percent a year.

PT Multi Spunido Jaya was established in March and based in Surabaya.