More synthetic fiber companies build coal-fired power plants

A number of synthetic fiber producers in the country plan to build coal-fired power plants to reduce their operational cost, Kontan business tabloid reported in its latest edition on Thursday.

Besides, due to financial consideration, the synthetic fiber producers, which are among the largest users of PLN's electricity supply, will build their own power plants because the growing uncertainty in the power supply from PLN. A series of blackout carried by PLN recently has seriously affected their production activities.

One of the synthetic fiber producers PT Panasia Indosyntec, is currently constructing a coal-fired power plant in its industrial complex, in Cisirung, Dayeuh Kolot, West Java. The power plant which will have a capacity of 30 MW is expected to begin commercial production in 2006.

The company's president Suwandi Bing Andi said that operating a coal-fired power plant would enable the company to reduce the electricity cost to between Rp 300 to Rp 400 per MW as compared to Rp 500 per MW it buys from PLN.

Panasia would spend at least Rp 16 billion to build the power plant, but in long-term the company would earn much benefits from the operation of its own power plant. "We hope break-event could be reached in 4.5 years," Suwandi said. (*)