Plastic packaging firm switches business to energy

IDX-listed plastic packaging firm PT.Leyand Energy plans to switch business to energy by acquiring stake in the company that operates power plants in Sumatra and Kalimantan.

The company said in an announcement last week that it would raise Rp.400 billion or US$44 million through right issue to acquire 51 percent stake at PT.Asta Keramasan Energi (AKE). AKE operates three power plants namely: Belawan Diesel-fired power plant with installed capacity of 65 MW in North Sumatra, Keramasan combined cycle power plant with installed capacity of 2x57 MW in South Sumatra, Siantan Diesel-fired power plant with installed capacity of 35.8 MW in West Kalimantan.

The right issue will be conducted in April 2008.

All three power plants had secured contract with state electricity firm PLN and both diesel-fired power plants would start production next month; wile Keramasan is slated to start production in September 2008. (alex)