Phenolic resin firm set up

Phenolic resin firm set up

TOKYO (AFP): Japan's Sumitomo Bakelite Co. Ltd. will set up a joint venture in Indonesia in December to produce phenolic resin for sale in Southeast Asia, a spokesman said yesterday.

PT Indopherin Jaya, capitalized at US$2.4 million, will be owned 45 percent by Sumitomo Durez Co., a subsidiary of the Japanese synthetic resins, and 25 percent by PT Prospect Motor, an Indonesian automaker.

PT Pamolite Adhesive Industry of Indonesia and Japanese trader Kanematsu Corp. will hold 15 percent each.

The new company, based in Jakarta, will invest about 550 million yen ($5.5 million) to build a plant in Probolinggo, the spokesman said.

It will start production of the resin, used for electrical products and cars, in October next year, targeting sales of 400 million yen in the first year. The company hopes to boost sales to 600 million yen in the second year and 800 million yen in the third year.

About 4,000 tons of the product will be sold in Indonesia annually, and 2,200 tons will be exported to Malaysia and 3,600 tons to Thailand, the spokesman said.