Maspion to produce steel

SURABAYA (JP): PT Maspion Stainless Indonesia plans to start producing stainless steel this year to tap the growing domestic market, one of the company's shareholders said yesterday.

Alim Satria, the managing director of PT ALMI, said from Surabaya that Maspion would initially produce about 50,000 tons or around 70 percent of annual domestic demand.

The new stainless steel company would supply about 13,000 tons of stainless to its own business group which also produces kitchenware, he said

"The rest will fill some of the domestic demand," he said after signing the agreement establishing the new stainless steel producer.

The joint venture, which will establish its plant in Gresik, East Java, is 15 percent owned Kanematsu, 5 percent by Nippon Yakin and 10 percent by Sumitomo -- all Japanese firms. PT ALMI holds 70 percent of the new company. (26)