Aldevco to rebuild aluminum processing plant
Monday, March 27 2017 - 06:32 AM WIB
State-owned PT Aldevco plans to rebuild its aluminum processing plant in Kuala Tanjung, Batubara Regency, North Sumatra Province, as the company aims to resume processing of aluminum into billets.
This was said by Priyo Pribadi Sumarno, a commissioner at the company and a director at PT Asahan Aluminium Alloys, a subsidiary of Aldevco, to Petromindo.com on Monday.
He said that reconstruction of the aluminum processing plant, which will have a capacity of 35,000 tons of billets per year, is targeted to be completed at the end of this year.
Priyo said that investment for the reconstruction of the plant is estimated at US$12 million-$15 million. ?We?re in talks with the government to make the new investment and rebuild the plant,? he said.
Aldevco was set up in 1988 by then government of president Soeharto, initially as marketing agent for aluminum output of state-owned aluminum producer PT Indonesia Asahan Aluminium (Inalum), but later expanded into production of billets and alloys with raw materials coming from Inalum. But in 1999, the company?s operations were suspended amid corruption investigation, causing the aluminum processing plant to cease operation.
Priyo said that once the new plant is completed, Aldevco plans to seek cooperation with Inalum for the supply of raw material.
Editing by Reiner Simanjuntak