Sumitomo, Hopewell tie up

Sumitomo, Hopewell tie up

TOKYO (Reuter): Japanese trading house Sumitomo Corp said it will tie up with Hong Kong's Hopewell Holdings Ltd group in a US$1.8 billion project to build an electric power plant in Indonesia.

A Sumitomo spokesman said the two firms will jointly build the coal-fired plant in Tanjung Jati on Java. They plan to start generating electricity at the end of 1998, he said.

The electric power business will be carried out by Hopewell's Indonesian unit, which already has a 35-year contract with a public electricity firm in Indonesia, he said.

Sumitomo's financial contribution to the project will be about $400 million, the firm's spokesman said.