Suba Indah to build corn processing plant

JAKARTA (JP): Publicly-listed food and beverage company PT Suba Indah is to soon embark on the construction of a corn processing plant in Cilegon industrial estate in West Java.

Production is slated to start in 2002 with a daily processing capacity of 1,000 metric tons.

Suba's president Soepeno Sumardjo said in a statement on Friday the Rp 523.8 billion (US$58.8 million) plant would produce corn starch, corn oil (germ), gluten feed and gluten meal for the domestic and export market.

"Indonesia still has to import hundreds of thousands tons of corn a year both for food and animal feed," Soepeno added.

Suba's director Ibnu Sutowo (not related to the director of Pertamina in the 1970s) added that the factory would be the largest of its kind in Southeast Asia and would be first facility to use American and German processing technology.

According to Soepeno, the new facility would create hundreds of jobs, save on foreign exchange so far used for imports and also create a reliable market for corn farmers in West Java.

"Cigading is quite a strategic site for the plant in view of the good infrastructure already in place in the industrial estate, including Cigading Port, which is capable of berthing ships of up to 15,000 deadweight ton capacity," Soepeno added.

The additional investment, Soepeno said, would be financed by the proceeds from a rights issue and the floating of convertible bonds.