JAKARTA, Jan 18 Asia Pulse - State-owned plantation company PTPN III inMedan said it will build a panel wood plant in cooperation with investorsfrom China and Japan.
The factory to be built with an estimated cost of US$10 million will havean annual capacity to produce 20,000 tons of panel wood made of oil palmtrees.
President of PTPN III Akmaluddin Hasibuan said the plant will be built inthe regency of Asahan, North Sumatra, with investment made up of 70 percent in loan from China and 30 per cent put up by the Chinese and Japanesepartners and PTPN III.
The Japanese partner will provide the technology and China will be themain market, Hasibuan said, adding China, which is busy buildingfacilities for 2008 Olympic Games, is the largest market for panel wood atpresent
He said construction of the plan is to start this year.