Toba Pulp Lestari to expand capacity of dissolving pulp in Indonesia

JAKARTA, Indonesia, Nov. 6, 2009 (Press Release) - PT Toba Pulp Lestari Tbk (TPL) today announced ambitious expansion plans for the production of dissolving pulp, the main raw material used in the manufacture of Viscose Staple Fibre (rayon).

Previously TPL had announced the permanent transition from production of paper pulp (BHK) to production of viscose grade dissolving pulps commencing in January 2010.

In addition to this transition, The Board of Directors has now approved an expansion and mill modernization program that will take production from 165,000 tonnes per year to 300,000 tonnes per year in a series of phases to be completed over a 24 months timeframe.

For several years TPL has been progressively establishing a sustainable wood supply of plantation eucalyptus to support this permanent transition and TPL's future expanded operations will be supported by 100% sustainable plantation eucalyptus plantations.

"The decision to expand capacity and modernize at TPL recognizes the strategic value of our low cost operation and sustainable plantation platform and we look forward to a successful project" said Mr. Subhash Paruthi, President Director of TPL. "These steps will also build on our now proven capability to produce high quality dissolving pulp for use in the growing Viscose Staple Fibre business".