PTPN III to build oleochemical plant

Thu, 04/19/2012 - 07:54

State-owned plantation company PTPN III will be an oleochemical plant worth Rp 3 trillion in the Sei Mankei industrial area in North Sumatra.

State Minister of State-Owned Enterprises (SOEs) Dahlan Iskan was quoted by Investor Daily on Thursday as saying that construction of the plant is scheduled to begin at the end of this year, and to be completed in 2015.  “Funding will come from state-owned bank. So this will be a form of synergy among SOEs,” he said.

He said that the diversification into the palm oil downstream product used as raw materials in the production of products such as soaps, detergents, cosmetics, pharmaceuticals and food will create greater value added for the country and considered as the first in the history of the country’s SOE.  The oleochemical facility will have a production capacity of 1.5 million tons per year.

“The construction of the project will be made solely by the SOE without the role of private investor,” he said.  “Previously, it was planned that it will be developed in partnership with a private investor, but last week I went to Medan and it was decided that the SOE will develop it on its own,” he added.  Under the initial plan, Germany’s Ferrostall AG was supposed to be PTPN III’s partner in the oleochemical project. (rei)

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