Zug Industry plans to expand boiler production

PT Zug Industry plans to produce boilers for power plants with capacity of 600 MW and 1,000 MW in anticipation of demand as the government has set a target to develop power plants with total capacity of 35,000 MW over the next five years, Kontan reported on Saturday.

The paper quoted Zug Industry Henky Leo as saying that the company would open up a second US$50 million manufacturing plant in Pandeglang Banten to produce the specific type of boilers.

Set up in 2004, Zug Industry currently produces boilers with capacity of 30 MW and 100 MW at its plant in North Jakarta.

Henky said that the production capacity of the second plant will depend on demand from the local power plant contractors which have in the past mostly imported their boiler requirement from China.

Henky said that the company would seek for government policy to require domestic power plant contractors to buy boilers from the local manufacturers. If the request is approved, the company would start construction of the second plant in March of April of this year.

Last year, Zug Industry produced two boilers, one for state-owned power firm PLN, another exported to Pakistan. The company also produced boiler components for a plant in Belgium. (*)