Urea firm to replace old factory
Urea firm to replace old factory
CIKAMPEK, West Java (JP): State fertilizer company PT Pupuk Kujang plans to build a new plant to replace its 17-year-old factory in Cikampek, West Java, with an investment of US$295 million, said the company's president, Edi Madnawidjaja.
"We are awaiting approval from the Coordinating Minister for Economic, Finance and Development Supervision (Saleh Afiff) to seek an overseas loan, hopefully in the form of export credit," Edi told the press at a ceremony to mark the last output for 1995 on Monday.
He said that most fertilizer plants operate for about 20 years. Because it will take about two years to build, he suggested that construction of the new plant start this year.
The company's public relations manager, Yuda Prawira, told The Jakarta Post yesterday that the new plant will be designed to have an annual production capacities of 330,000 tons of ammonia and CO2 gas and 570,000 tons of urea, both of which are lower than the current factory.
In the year-end report Edi said that Pupuk Kujang produced 391,612 tons of ammonia, 2.25 percent over target, and 607,803 tons of urea, which was 1.6 percent over last year's target.
Yuda added that 400,000 tons of the urea were distributed to village cooperatives in West Java while the remaining 207,000 tons were exported to China, Vietnam, the Philippines and Africa.
Edi said that Pupuk Kujang owns shares in five joint-venture companies in Cikampek -- PT Sintas Kurama Perdana, PT Multi Nitrotama Kimia, PT Kuniseal Nusantara, PT Kujang United Catalyst and PT Peroksida Indonesia Pratama.
The last three joint ventures are between Pupuk Kujang and Japanese firms while the former two are with national companies.
Edi said that the total sales turnovers of the five joint ventures last year amounted to Rp 98.9 billion (US$43 million) and those of Pupuk Kujang itself to Rp 177.8 billion.
Pupuk Kujang is one of the six state fertilizer companies that produce urea, the most favored fertilizer for rice crops.
The other five are PT Asean Aceh Fertilizer and PT Pupuk Iskandar Muda in Aceh, Northern Sumatra, PT Pupuk Sriwijaya in Palembang, South Sumatra, PT Pupuk Kaltim in Bontang, East Kalimantan and PT Petrokimia Gresik in East Java.
News reports said last week that farmers in West, Central and East Java protested local cooperatives, who ran short of the powdered urea fertilizer used during rice planting season.
The cooperatives have begun selling tablet urea fertilizer, which the government says is more efficient.
However, farmers prefer powdered urea, which requires fewer laborers to spread the agrochemical in rice fields. (kod)