Inalum to diversify into electricity cable

State-owned aluminum producer PT Indonesia Asahan Aluminium (Inalum) plans to produce electricity cable as part of product diversification to benefit from the government?s program to develop a combined 35,000 MW of power plants over the next five years, Kontan reported on Tuesday.

The paper quoted Inalum President Director Winardi Sutomo as saying that the company would produce 70,000 tons of electricity cable per year starting 2017 from its plant in Kuala Tanjung, Sei Suka District, Batu Bara Regency, North Sumatra.

He said that the company will invest about US$80 million in the project. He added that part of the output will also be exported, in cooperation with international distribution firms.

Inalum has earlier announced plans to diversify into aluminum alloy and billet production as the firm moves further into downstream products. The company is also planning to produce aluminum slab starting 2017 with production rate of 50,000 tons per year. It will invest $50-60 million in this project. (*)