Pusri to upgrade plants and switch power plant from gas to coal
Thursday, September 20 2007 - 03:03 AM WIB
State-owned fertilizer companies PT Pupuk Sriwidjaya Holding (Pusri) may spend $2.8 billion in four years to upgrade its plants as well as those belonging to its subsidiaries and switch to using coal from gas for power generation to cut costs.
Pusri has four subsidiary fertilizer firms that is PT Pupuk Kalimantan Timur, PT Petrokimia Gresik, PT Pupuk Kujang and PT Pupuk Iskandar Muda.
The companies plan to spend $2.5 billion to overhaul the production plants and another $320 million to convert gas-fired power generators to units using coal, P-Pusri's President Director Dadang Heru Kodri said after a meeting with Indonesian Vice President Jusuf Kalla in
The companies will sell debts to fund 70 percent of the planned spending, Kodri said. He didn't elaborate.
At the first stage, the energy conversion program will be carried out at Petrokimia Gresik and Pupuk Kalimantan Timur. Both companies will invest US$110 million or about Rp1.7 trillion, Director General for Agro Industry and Chemical of the Trade Ministry Benny Wahyudi said in October 2006. (*)