Yeo Hiap enters Indonesia

Yeo Hiap enters Indonesia

SINGAPORE (Reuter): Yeo Hiap Seng Ltd (YHS) said yesterday it had entered a joint venture agreement to set up a diary company in Indonesia.

It said in a statement it formed the venture company, PT Prima Sari Nutrisihad, with PT Sekar Alam, a member of Indonesia's diversified Sekar Group, and PT Maharani Paramitra.

The venture company would import, manufacture and distribute dairy and related products, it said.

It said the joint venture would have an initial issued and paid-up capital of US$8 million, of which YHS will have a 25.5 percent stake, with the balance 59.5 percent and 15 percent stakes being held by PT Sekar and PT Maharani respectively.

The company's share of the equity contribution will be financed from internal resources and bank borrowings.

The venture company will operate from a new plant to be acquired in Surabaya, Indonesia. The plant is expected to begin commercial production in 1998.