UPM-Kymmene to invest $235m in Riau pulp firm

UPM-Kymmene to invest $235m in Riau pulp firm

JAKARTA (JP): Europe's largest paper maker UPM-Kymmene will
soon invest US$235 million to expand PT Riau Andalan Pulp &
Paper's annual pulp capacity to one million tons from 750,000
tons and to double PT Riau Andalan Kertas' paper capacity to
700,000 tons a year.

P. Daritan, the spokesman for the Raja Garuda Mas (RGM)
International Group, said here yesterday the additional
investment was a result of the strategic alliance between
Finland's UPM-Kymmene and Asia Pacific Resources International
Holdings (APRIL).

Singapore-registered APRIL, which is listed on the New York
Stock Exchange, is owned by Indonesian businessman Sukanto
Tanoto, who is also the chairman of RGM.

APRIL created its strategic alliance with UPM-Kymmene last
September to raise additional capital for expanding its pulp and
paper manufacturing capacities in Riau and to acquire the latest
in technology and international environmental standards for its
Indonesian operations.

RGM owns Riau Andalan Pulp & Paper and Riau Andalan Kertas,
both located in Kampar, Riau province.

Riau Andalan Kertas has just completed the construction of its
first paper mill with an annual capacity of 350,000 tons. The
plant is scheduled to commence commercial production in April.

Daritan said the alliance also enabled APRIL to accelerate the
building of its paper mill in Suzhou, China.

"Riau Andalan Pulp will export part of its pulp output to be
processed into fine paper at the Suzhou plant while Riau Andalan
Kertas will market part of its fine paper production in Europe
through the marketing networks of UPM-Kymmene," Daritan added.
(vin)