Unifiber subsidiary appoints MCC20 as turnkey contractor for pulp mill
SINGAPORE, Feb. 25, 2008 (Press Release) - The Board of Directors of United Fiber System Limited (Unifiber) is pleased to announce that its wholly owned subsidiary PT Marga Buana Bumi Mulia (PT MBBM) has on 22 February 2008 entered into a Turnkey Agreement with China MCC20 Construction Co. Ltd (MCC20), a subsidiary of China Metallurgical Group Corporation (MCC) for the construction of a bleached hardwood kraft pulp mill in South Kalimantan with a capacity of 600,000 air dry tonnes per annum.
Under the Agreement, MCC20 will be responsible for, inter alia, the design, procurement and supply of all machinery and equipment, civil work, and the installation work required to set up a complete pulp mill for a consideration value of approximately $863 million. MCC20 will also provide supplier’s credit for the Project. According to the Agreement, within one month from the signing of the Agreement, both parties are expected to settle all the major pending items including the financing package, detailed construction program and the groundbreaking of the Project. The Board of Directors will make a further announcement upon the finalization of the terms of the turnkey arrangement and the supplier’s credit.
Unifiber had previously entered into a turnkey contract on similar arrangements with China National Machinery & Equipment Import & Export Corporation (CMEC). However, after further consideration, the Board of Directors of Unifiber is of the view that MCC20 is a more synergistic partner as the turnkey contractor and the engagement of MCC20 will allow the Company to advance forward with the Project in a manner that is most timely. This Agreement will effectively replace the contract signed with CMEC.
Save as disclosed above, none of the Directors, controlling shareholders or substantial shareholders of the Company have an interest, direct or indirectly, in the above Project.
Important 2008 Conference Date Changes!
PPI Market Pulp will now take place April 6-7, 2008. The RISI European Conference will be held April 7-9. Both events remain in Lisbon, Portugal.
