Tube venture in RI

Tube venture in RI

TOKYO (AFP): Nippon Electric Glass Co. Ltd. and Sumitomo Corp. of Japan said yesterday they would form a joint venture in Indonesia to produce cathode ray tube glass.

Nippon Electric would hold a 75 percent stake in the new venture, to be capitalized at US$25 million, with Sumitomo holding 20 percent. The balance would be held by a local company, PT Bukaka Teknik Utama.

The venture, PT Nippon Electric Glass Indonesia, was to start production from late next year at an annual rate of four million units, the companies said.

The partners forecast first-year revenue at 800 million yen ($7.8 million), to be boosted to 6.5 billion yen in two years, they said.