New paper pulp and tissue factory comes on stream in Sumatra

Palembang, S Sumatra (Antarasumsel.com) - A new paper pulp and tissue of OKI Pulp And Paper has come on line in Ogan Komering Ilir, South Sumatra after wrapping up the process of trial operation last year, the owner of the company APP Sinarmas said.

"This month the factory began operation," a director of APP Sinarmas Suhendra Wiriadinata said here on Friday.

Suhendra said there was no production target set in the first year, adding "we are more concerned with obtaining accurate data of installed capacity."

The data are important as part of the production of the factory is to be exported with the rest to be supplied to a subsidiary producing paper and tissue, he said.

"The partner company certainly wants to know exactly how much of the production could be exported regularly, and no less important is about the quality," he said.

The company also is seeking to speed up the completion of work to build a special port near the factory in Tanjung Tapa, sub-district of Air Sugihan, he said.

The port would be able to accommodate big ships as the port basin is deep and wide, he said.

"So far there is no problem in the construction of the port. All is in process," he said.

The paper pulp factory of OKI Pulp And Paper is the largest in Asia using the highest and latest technology.

The factory was built with an investment of Rp40 trillion with export target of 2 million tons of pulp and 500,000 tons of tissue worth US$1.5 billion this year.

With the operation of the factory South Sumatra`s exports could surged 32 percent and its Gross Regional Domestic Product by 11 percent.

Based on schedule, the factory would be officially commissioned in April 2017 when it ships its first export.