Pioneer to build new plant

JAKARTA (JP): Corn seed producer PT Pioneer Hibrida Indonesia said on Tuesday it would build a new hybrid corn seed plant in Malang, East Java, to increase its production capacity and boost exports.

Pioneer country manager Andy Gumala said the plant, expected to be the biggest hybrid corn seed facility in Asia with production capacity of 15,000 tons per annum, would cost US$7 million.

Construction will start in July, he said.

The company operates two hybrid corn seed plants in Malang and Medan, North Sumatra, with production capacity of 5,000 tons and 10,000 tons seed a year respectively.

Andy said the company planned to boost exports with the new plant.

In 1998, the company exported 3,000 tons of hybrid seed and sold another 5,000 tons on the domestic market.

Andy predicted demand for hybrid corn seeds in Indonesia would continue to rise in the future in line with the government's efforts to increase food crop production. (gis)