Sibalec to set up plant

Sibalec to set up plant

JAKARTA (JP): PT Sibalec, a lamp producer, signed a joint venture agreement yesterday with two Japanese companies -- Toshiba and Kanematsu -- to establish a glass component plant with an investment of Rp 25 billion (US$10.8 million).

Sibalec's president, Soepono, said that Sibalec will take 30 percent of the plant's total equity, Toshiba 55 percent and Kanematsu 15 percent.

"The planned plant will become the first in the country to produce glass components for bulb and tube lamps," he said.

Soepono, who is also the chairman of the Indonesian lamp producer association, said that the plant's operations will help reduce the prices of glass components on the domestic market by 20 percent.

He said that at present 21 companies are recorded as lamp producers in Indonesia, three of which are foreign investment companies.

"This glass component plant has strategic and bright prospects in Indonesia because the raw materials -- quartz and natural gas -- are available domestically, in addition to low cost manpower," he added.

Soepono didn't mention the capacity of the plant but said that part of its production will be sold to Toshiba's customers in Japan, Taiwan and South Korea. (08)