STIC cancels RI project

STIC cancels RI project

SINGAPORE (Reuter): Singapore Technologies Industrial Corp said yesterday it would not be going ahead with plans to build an industrial park in Surabaya, Indonesia, which had been estimated to cost S$285 million.

It said in a statement its memorandum of understanding (MOU) signed on November 25 last year with Indonesia's Dharmala group to develop the 300-hectare park, had expired.

A detailed technical study had been carried out after the MOU and based on the results, a decision was taken not to proceed with the project, it said.

It was to have led a consortium of Singapore companies which would have owned 60 percent of the project.

STIC had intended to take the largest share of 36 percent, while the Indonesian consortium formed by the Dharmala group would have taken up the remaining 40 percent stake.

The park would have included electronics, electrical, precision engineering, pharmaceutical, aerospace and supporting industries, it said earlier.

STIC now has two industrial parks located on Indonesia's Batam and Bintan islands and one in Wuxi, China.