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)