REPUBLIKA.CO.ID, PALEMBANG -- The South Sumatra-based state fertilizer company PT Pupuk Sriwijaya (Pusri) is building a fertilizer factory in Cikarang, West Java, according to the company's director.
Pusri's Development and Technical Director Benny Hariyoso stated here on Tuesday that his company has established a subsidiary, PT Agro Lestary, in a bid to showcase its commitment to supporting the food sector.
"The construction of the factory is still in progress. It is now entering the engineering phase and is expected to be completed within a period of 18 months," Hariyoso revealed.
President Director of Pusri Musthofa stated that in order to implement the project, his company is cooperating with a foreign partner who has a comparative advantage in the pesticide sector.
The cooperation in the development of the pesticide factory in Cikarang is being carried out in the form of a joint venture, he remarked.
Pusri is developing the pesticide factory as part of its efforts to expand its business and in this regard, it has set aside funding worth Rp150 billion.
Moreover, Pusri has also set up another new factory, Pusri II-B, in Palembang, South Sumatra, which will become operational in March 2016. It is expected to push up the company's production of urea fertilizer from 2.1 million tons to 2.8 million tons per year.
Production Director of PT Pusri Johan Safri noted on Monday that the production target will be achieved in the first year when the new factory commences operations.
"After Pusri II-B becomes fully operational, the production target of 2.8 million tons would be realized right away, or an increase of 750 thousand tons," Johan pointed out.
In 2014, Pusri produced 2.10 million tons of urea fertilizer, and in 2015, the production target was set only slightly higher at 2.15 million tons.
"If the production needs to be increased significantly, a new factory has to be built, as the existing factories are operating at full capacity," Johan claimed.
Pusri II-B is built using new technology and is environmentally friendly and efficient.
Pusri II-B is designed to have an installed production capacity of two thousand tons of ammonia per day and 2,750 tons of urea fertilizer per day.
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