UFS to invest $45 in new Kalimantan plant

UFS to invest $45 in new Kalimantan plant

United Fiber System (UFS) Ltd., a Singapore listed forestry-based
company, announced on Thursday that its local unit PT Mangium
Anugerah Lestari (MAL) would invest US$45 million in a new plant
in Kota Baru, South Kalimantan.

In a statement, UFS chief executive Kishore Dass said the
plant would have a capacity to produce 700,000 tons of wood
powder annually. The powder would be sold internationally at a
price of $120 per ton.

The plant is expected to be constructed within 12 months.

UFS has recently announced its plan to acquire the entire
stake in troubled pulp and paper company PT Kiani Kertas from
Prabowo Subianto, the former son-in-law of former President
Soeharto.

The deal, which is currently being arranged by Deutsch Bank
AG, is expected to be worth more than $200 million.

According to a report from the Center for International
Forestry Research (CIFOR), local businessman Wisanggeni Lauw, was
known to be the former largest individual shareholder in UFS by
indirect means.

Wisanggeni is known to have a long-standing relationship with
Probosutedjo, Soeharto's half brother. In 1994, Wisanggeni began
working with Probosutedjo as the director of forestry based-
company PT Menara Hutan Buana. -- JP