Pirelli sets up cable venture

JAKARTA (JP): Pirelli Cable of Italy has agreed to establish a joint venture with PT Kabelmetal, an affiliate of the Gadjah Tunggal Group, to produce electricity and telecommunication cables in Indonesia with an initial investment of US$70 million.

Under an agreement signed by Pirelli Cable's managing director, Giuseppe Morchio, and the president of Kabelmetal, Herman Nursalim, the joint venture will manufacture fiber-optic cables and systems for telecommunications and high voltage power cables.

Morchio said here yesterday that the venture, which will be equally owned by the Italian and Indonesian parties, will also provide telecommunication services for cables and systems for power distribution.

He said that a new factory employing some 350 people will be built near Jakarta and will start operation in 1996.(riz)