VW poised for stake

VW poised for stake
in Proton: Report

FRANKFURT: German automotive concern Volkswagen is now poised for
a possible buy-in at the Malaysian car group Proton in the wake
of the pullout by Mitsubishi Corp., the daily Frankfurter
Allgemeine Zeitung (FAZ) reported on Thursday.

The paper noted that VW and Proton Holdings Bhd agreed in
October 2004 to cooperate more closely.

In the meantime, VW inspectors have carried out a quality
analysis of Proton's components suppliers, determining that 49
out of 179 suppliers do not meet international standards.

The FAZ said that this help by VW in itself was new for
Proton, for in the past the Mitsubishi company had not provided
the Malaysian company with any high-tech support.

The Mitsubishi group at one point had held over 15.8 percent
of Proton. But in the spring of 2004, Mitsubishi Motor Corp. sold
its 7.93 percent stake, and then at the end of the year trading
company Mitsubishi Corp. sold its 7.93 percent holding.-- DPA

;AFP;
ANPAf..r..
brief-BP-contract
RI Likely To Extend BP Contracts On Gas Blocks
JP/14/BP

RI likely to extend
BP contracts

JAKARTA: The Indonesian government will likely agree to extend
contracts awarded to BP Plc (BP) to operate three gas blocks in
West Papua until 2035, a government official said on Thursday.

Iin Arifin Takhyan, director general of oil and gas at the
Ministry of Mines and Energy, said the two sides were expected to
sign an agreement in the near future.

BP has been asking the government to extend the contracts for
the Wiriagar block, which will expire in 2023, the Muturi block,
which will expire in 2027, and the Berau block, which will expire
in 2017.

The three blocks will supply gas to the nearby Tangguh natural
gas liquefaction facility that BP will develop with other
partners.

The extension is to secure the gas supply for Tangguh. BP has
signed contracts to sell LNG from Tangguh to offshore buyers
until 2035. -- Dow Jones

;AFP;
ANPAf..r..
Brief-Indonesia-steel
Indonesia's Krakatau Steel to increase hot rolled steel output
JP/14/Brief

Krakatau Steel to
up steel output

JAKARTA: Indonesia's state-owned Krakatau Steel plans to increase
its hot rolled coil steel plate production by one million tonnes
a year by building new production facilities worth up to US$400
million, a report said on Thursday.

"The construction of the new plant is to anticipate increases
in demand expected to reach 4.2 million tonnes in 2013," Krakatau
Steel spokesman Alfauzi Salam told the Sinar Harapan evening
newspaper.

Salam, who could not be immediately reached on Thursday, told
the newspaper that the new plant would have an annual production
capacity of about one million tonnes and would cost between $300
and $400 million to build.

Krakatau Steel currently produces 2.4 million tonnes of hot
rolled coil and Salam said that he expected the new plant to
begin producing in 2008 with construction expected to start in
2006.

He said that the new plant would be paid for out of earnings
and asset sales, along with loans.-- AFP