JAKARTA, March 14, 2013 – Indonesia’s packaging paper manufacturer, PT Fajar Surya Wisesa Tbk (Fajar Paper), has announced its latest expansion plan to construct a new paper machine (PM#6) in the vicinity of Surabaya, the provincial capital city of East Java, Indonesia. The construction of 350,000 tonne/yr corrugated-medium paper machine is expected to commence in second half of 2013, with target of completion in the 2nd quarter of 2015. PM#6 is 6.5 m wide and targeted to have a design speed of 1,200 m/min.
Fajar Paper’s decision to invest in the East Java region is to capitalize on the growth potential outside West Java region, where the current paper mill is located. In addition to that, the decision is aimed to provide faster delivery and shorter response time to customers in eastern and central Java region. Fajar Paper believes that Indonesian economy will remain strong, driven by the strong domestic consumption growth, and proven by the steady growth of its customer base in East and Central Java over the past years.
Investment project cost is estimated at around US$ 150 million, which will cover the cost to acquire the paper machine, a power plant, and as well as other supporting facilities and infrastructures. As of the date of this publication, Fajar Paper has already acquired certain part of its new upcoming PM#6 from a reputable paper manufacturer in Finland, and the remaining
parts will be sourced mostly from Europe and Japan. With the addition of this paper machine, PM#6, Fajar Paper will have a total production capacity of 1.55 million tons/yr of packaging paper.
To learn more about this Press Release, please contact FajarPaper’s Investor Relations
Department at email@example.com, or +62 21 344 1316.