Nippon Electric builds RI plant

Nippon Electric builds RI plant

CIKARANG, West Java (JP): PT Nippon Electric Glass Indonesia will invest US$300 million in a plant which will produce five million cathode-ray tubes here, the company's president, Masao Yamahashi, said yesterday.

"We will initially invest $80 million to develop the first stage of the industry," Yamahashi said after the ground-breaking ceremony for the plant in a 20-hectare area in the Jababeka industrial estate.

Yamahashi (left in the picture above) received a piece of the traditional rice cone from Kiyosaku Kishida, president of Nippon Electric Glass, after the ground breaking ceremony.

Yamahashi said the company is 70 percent owned by Nippon Electric Glass, 20 percent by Sumitomo Corporation and 5 percent by PT Bukaka, a local company.

Cathode-ray tubes are used for color television, computer displays and monitors for factory automation, medical and radar equipment.

He added that the plant will eventually become the biggest in Southeast Asia after the Nippon Electric Glass factory in Malaysia which has an annual capacity of 15 million cathode-ray tubes.

The Malaysian plant cannot be expanded because of a shortage of manpower, he said.

"I am sure there is a large number of workers whom we can employ for our industry here," said Yamahashi, adding that he will employ 100 in the first phase.

The company plans to export some of its products to Japan and Taiwan.

Deputy president of the Jababeka Industrial Estate, S.D. Darmono, said that Nippon Electric Glass is the fourth major investor at the 800-hectare estate after United Tractor, Unilever and Dharmala Group. (kod)