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.