Texmaco to build rayon fiber plant

Texmaco to build rayon fiber plant

JAKARTA (JP): The Texmaco Group, a producer of textile
machinery, will take over the forestry concessions of PT Astra
International and its partner Scott Paper Co. of the United
States in Irian Jaya, a minister said yesterday.

"Texmaco will take over the plan of Astra and its partner in
Irian Jaya. But unlike the Astra-Scott joint venture, which will
use the wood from the concession to produce pulp and paper
tissue, Texmaco will use the wood to manufacture rayon fiber,"
Minister of Forestry Djamaludin Suryohadikusumo told reporters
after meeting President Soeharto.

Djamaludin said Texmaco would set up a rayon fiber plant in
Irian Jaya.

He did not mention the production capacity of planned plant,
nor how much it would cost to develop.

He said Texmaco would install its own machinery in the rayon
fiber plant.

Two years ago, Astra and Scott planned to set up a pulp plant
and develop forestry industrial estates in Irian Jaya. But
because of environmental campaigns launched by non-governmental
organizations in the United States, Scott quit the project and
Astra had to cancel it.

Djamaludin said the government would promote the use of rayon
fiber as a raw material for Indonesian textile industries because
it is hard to grow cotton in Indonesia.

He said that only PT Inti Indorayon in Porsea, North Sumatra,
would be able to produce rayon fiber in the near future.

He told the President about investor's increasing interest in
developing palm oil plantations near Merauke, Tanah Merah and
Wamena, which are linked by good roads, in Irian Jaya.

According to the minister, President Soeharto called for the
application of a nucleus-estate-and-smallholder scheme in
developing palm oil plantations. (bnt)