Indonesian pulp plant

A consortium of investors from eight countries plans to invest USD 1.2 billion in a pulp factory in South Kalimantan. Investors from Japan, China, Germany, The Netherlands, Finland, Sweden, Singapore and France would build a pulp factory with an annual capacity of 600,000 tons, South Kalimantan Governor Sjahriel Darham said. The factory was expected to come on stream by the end of next year. Darham said the pulp factory, to be operated by PT Marga Buana Bumi Mulia, would be integrated with a bleaching chemical plant. Part of the bleaching chemical production would be exported and the rest would be used by the pulp factory. A Singapore company would build a 140mw power plant to supply power for the pulp factory. Darham said the pulp to be produced by the factrory would be dry pulp that would not need special ports to handle its exports. The log raw material of around 2.5 million cu.m. a year will be supplied from an industrial timber estate in that province, he said.

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