JAKARTA (Yosefardi) – Sinar Mas Group will in near term build new pulp and paper mill in Ogan Komering Ilir, South Sumatra, with investment cost of US$3 billion.
The mill will be built in 2 phase with capacity of 2 million tons per year each. The construction is targeted to complete by end of 2015 and commence production by early 2016.
The new mill will be named as PT OKI Pulp and Paper Mills. Sinar Mas had in October 3, 2013 signed loan agreement with China Development Bank for funding the project.
CDB will provide loan of US$1.8 billion for first phase. Sinar Mas needs loan of up to US$2.6 billion for the project. While the rest US$800 million will be funded by equity of shareholders of Sinar Mas Group.
Sinar Mas will also add investment of US$500 million for producing tissue.
World consumption of pulp and paper is predicted to reach 142 million tons this year, grew by 15-20% per year.