S'pore company buys Indonesian plants

S'pore company buys Indonesian plants

SINGAPORE (Reuters): Singapore Power Ltd (SP) said yesterday its joint venture company had paid US$349 million to acquire power plants from Asia Pulp & Paper Co.

SP said in a statement that Asia Independent Power (BVI) Ltd (AIP), would acquire some of the power and steam plants of Asia Pulp & Paper's (APP) subsidiaries, PT Indah Kiat Pulp and Paper Corp Tbk and PT Pindo Deli Pulp and Paper Mills in West Java, Indonesia.

The four co-generation plants have an installed capacity of 313 MW for power generation and 1,573 ton per hour for steam production.

The plants at Serang, Tangerang and Karawang, supply power and steam to the Indah-Kiat and Pindo Deli's paper and packaging mills.

It said AIP intended to acquire additional APP co-generation assets throughout Asia.

These include three plants in China, two of them under construction, three other plants in Indonesia, including a planned expansion, a plant in Malaysia's Sarawak and one in India.

APP's remaining co-generation facilities had installed capacity totals of 816 MW for electricity and 4,987 ton per hour for steam, with planned expansion of about 900 MW and 4,400 ton per hour in 1998 and 1999.

Singapore Power's president and chief executive officer, Boey Tak Hap said in the statement:

"The partnership with APP through Sinar Mas Group will allow SP to participate in the growing pulp and paper industry in Asia which has seen an average growth of 15.6 percent per annum over the last 10 years and is expected to continue to expand."

Boey said Singapore Power, through its subsidiary Singapore Power International, was actively pursuing power-related projects to leverage its core competency.

APP is Asia's largest pulp and paper company outside Japan with assets of $13.5 billion.