Lube recycling plant operational this month
Lube recycling plant operational this month
CIBITUNG, West Java (JP): PT Wiraswasta Gemilang Indonesia
will start operating its lubricating oil recycling plant with a
processing capacity of 67,200 tons per annum by the end of this
month.
"The plant, the first of its kind in the country, is designed
to refine used lubricating oil collected from throughout Java,"
the company's vice president, A.P. Batubara, told reporters
yesterday.
He said that the US$85 million plant was constructed under a
scheme called the environmentally beneficial recycling of energy
resources.
The Asian Development Bank, its affiliate Asian Finance and
Investment Corporation, and the Commonwealth Development
Corporation jointly hold a three percent stake in the lubricating
plant, he said.
"Around 60 percent of the investment has come from loans from
the three institutions, while the remaining 40 percent come from
the firm's own equity," he said, adding that the loan will have a
maturity of seven years, carry an interest rate of one percent
above the Singapore Interbank Offered Rates.
The company, controlled by business tycoon Sudwikatmono, uses
Mohawk technology of Canada for treating used lube, he said.
"In terms of quality, we are optimistic that our lubricant, to
be produced under a manufacturing license of the U.S. Pennzoil,
will be as good as those produced from lube base," Batubara said.
He declined to elaborate on the planned prices of his recycled
oil.
Located in the Gandamekar village, some 40 kilometers east of
Jakarta, the plant is designed to produce multipurpose
lubricating oil which can be used for engines, gears, industrial
machines, power steering systems and automatic transmissions with
international standardization.
In addition to Lippo Bank and Sigma Batara, individuals such
as Hendra Liem, Wilson Pribadi, Ibrahim Risyad, Henry Liem, Andry
Pribadi, are also shareholders of the lubricating firm besides
Sudwikatmono.
Indonesia is estimated to use some 200,000 tons of lubricant
annually.(fhp)