RI project in Malaysia

RI project in Malaysia

JAKARTA (JP): PT Andayani Megah, a subsidiary of the listed
Gadjah Tunggal Group, has signed a memorandum of understanding in
Kuala Lumpur with HICOM Berhad of Malaysia to establish a joint
venture in tire cord manufacturing.

HICOM Berhad is owned by HICOM Holdings Berhad, which is
listed on the Kuala Lumpur Stock Exchange.

The new company, with an authorized capital of US$7.5 million,
will be 45 percent owned by Andayani Megah and 55 percent by the
Malaysian party.

The construction of the $60 million tire cord plant is
expected to be completed by 1997 and to operate with an annual
production capacity of 12,000 tons of nylon, rayon and polyester
tire cords. (hdj)