Indonesia's Fajar Surya Wisesa mulls over new machine

SINGAPORE, June 12, 2008 (RISI) - Fajar Surya Wisesa is weighing up plans to invest in a new containerboard machine for its Bekasi mill in West Java, Indonesia.

The firm is considering installing a 300,000 tonne/yr unit, PM 5, which would produce corrugating medium. A spokesman said negotiations with potential suppliers are under way and a decision should be finalized in the third quarter.

The company aims to start construction of the machine house by the end of the year. Startup is penciled in for mid-2010. The cost of the project is expected to total some $85 million. Funding will come from loans and cash flow.

The Bekasi plant currently houses four PMs with a total capacity of 700,000 tonnes/yr of kraft paper, recycled linerboard, corrugating medium and cartonboard.