Pirelli sets up cable venture

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)