Sumalindo commences operation of coal- fired power plant

Medium density fiberboard producer PT Sumalindo Lestari Jaya Tbk said Thursday its subsidiary PT Kalimantan Powerindo had commenced operation of 15-MW coal-fired power plant at its factory in Kutai Kertanegara regency, East Kalimantan.

Sumalindo said in a statement to the Jakarta Stock Exchange that the Rp 150 billion (US$16 million)power plant is currently running at a capacity of 6 MW, but it expected to reach its peak capacity in a few days.

The new power plant will replace the existing 5x3MW diesel power plant, which consumes between 2.7 million and 3.0 million liters of diesel oil per month.

Sumalindo said it will save energy cost of about US$41/m3 of medium-density-fiberboard (MDF) produced from the factory.

Sumalindo?s factory has capacity to produce about 200,000 m3 of MDF per year. (Robert)