Pupuk Indonesia to Boost Production Capacity

Kamis, 13 September 2012 | 09:52

PT Pupuk Indonesia Holding Company will undertake a program of revitalization of three urea fertilizer plants and build a new factory to support long-term national food security.President Director of PT Pupuk Indonesia Arifin Tasrif said the revitalization of fertilizer plants including efforts to increase production capacity and also update the technology of coal to gas conversion.

"There are four projects, three projects which aim at replacing the old and a new plant construction project," he said on the sidelines of the seminar entitled International Fertilizer Industry Association (IFA) last week.

Pupuk Indonesia is planning an investment as much as US$5.6 billion until 2014 to revitalize the urea fertilizer plant and coal conversion to gas consumption for supporting food security and energy.

He is targeting an increase in production capacity of Pupuk Indonesia after revitalization at a range of 1-1.5 million tons per year.

Some of the fertilizer plants which will be revitalized and newly built are located in Palembang (South Sumatra), Bontang (East Kalimantan), and Gresik (East Java).

Arifin also said the revitalization of this plant is intended to seek efficiencies and create a more competitive fertilizer industry, in addition to support the long-term food security program.

Revitalization of the company’s fertilizer plants, as he said, is often constrained problem of gas supply as the raw materials for producing fertilizer. Besides, the application of such high-technology program, gasification of coal, needs a big funding. (T03/aph)

by Sepudin Zuhri, Hadijah Alaydrus
source http://en.bisnis.com