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)