Indorama plans to build 60 MW-steam power plant

Publicly listed textile company PT Indorama Synthetic Tbk plans to build a steam power plant with a capacity of 60 MW in a bid to reduce the company?s spending for electricity supply, Kompas reported on Saturday.

Speaking to reporters on Friday, the company?s director R. Chandrasekaran said that Indorama would invest about $67 million in fresh funds to finance the construction of the coal-fired power plant which was expected to begin its commercial operation in the third quarter of 2006.

?About $48 million of the total investment would be financed by loans from International Finance Corporation, while the remaining $19 million would be taken from the company?s own funds,? he said.

According to him, the operation of the power plant would be able to significantly reduce the company?s operational costs. ?With our own power plant, the cost for the power supply is only about 3 U.S. cents for kWh, as compared to 7 cents, if it buys from PLN,? he said.

Indorama, which operates 10 factories in Purwakarta and Subang, West Java, needs at least 40 MW of power supply. ?The access of the power supply from the new power plant will be sold to PLN,? he added. (*)