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)