Mitra Pinasthika sets Rp 390b for lubricant plant

IDX-listed automotive distributor PT Mitra Pinasthika Mustika Tbk (MPM) plans to build a new plant in West Java that produces and packs lubricants, The Jakarta Globe reported Saturday.

Agung Kusumo, a Director at MPM, was quoted by the paper as saying the plant that may cost about Rp 340 billion to Rp 390 billion ($28.4 million to $32.6 million) in investment and is designed to have capacity to produce 100,000 kiloliters of lubricant per year.

Currently, MPM through its subsidiary Federal Karyatama, runs two factories in Pulogadung industrial estate in East Jakarta. These factories produce 45,000 kiloliters of lubricant per year in total.

?We are in the process of finalizing the purchase of four hectares of land in West Java. Should things go smoothly, construction can start next year and be completed in 2016,? said Agung.

MPM currently produces Federal Oil, the official lubricant of Honda motorcycle.

Agung said the new factory will not limit its lubricant product to just Federal Oil, but may also expand into lubricant for four-wheeled vehicles. MPM is the exclusive distributor of the Honda for East Java and East Nusa Tenggara. (*)