Suba Indah to build corn processing plant

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.