Paper firm to raise output

Paper firm to raise output

JAKARTA (JP): PT Pabrik Kertas Leces, a state-owned paper firm
in East Java, will procure new waste treatment machines at Rp 56
billion (US$25 million), which will help optimize the utilization
of its production capacity, a company executive said.

"The Ministry of Finance and the National Development Planning
Board have agreed to this project, which will be financed with a
loan from the Overseas Economic Corporation Fund of Japan," the
executive was quoted yesterday by Bisnis Indonesia as saying in
Surabaya, East Java.

The company's production director, Gunawan, said the company
has a production capacity of 180,000 tons per year but thus far
it can produce only 160,000 tons a year.

With the planned operation of the new waste treatment
machines, the company is expected to increase its annual
production to 180,000 tons, Gunawan said.

He said the company has managed to reduce the portion of wood
it uses in its raw materials to 30 percent from the previous 40
percent, while the other 60 percent is waste paper imported from
the United States, Singapore and Australia. (31)