PEM Korea Co. Ltd. President Director Jin Hwan Ho signed a cooperation agreement for the construction of the plant with South Sulawesi Governor Syahrul Yasin Limpo at the gubernatorial residence here on Monday.
"In the first phase of the project, we will build two production lines to meet demand in South Sulawesi and neighboring provinces. Later we will develop them into four lines that we project will be able to meet demand in the eastern part of Indonesia," Jin said.
He said PEM Korea Co.Ltd. would team up with two local companies -- PT Hanwoo and Bahana Cipta -- to build the plant which would cost US$5 million to US$10 million.
The plant which would have an annual production capacity of 20 thousand to 30 thousand tons would start operating in 2012, he said.
South Sulawesi Governor Syahrul Yasin Limpo said the investment would enable South Sulawesi to take one step forward than any other provinces in terms of pipe industry.
"This is the fruit of our visits (to other countries). This morning we received the German ambassador and representatives of Korean company," he said.
(Uu.S012/H-NG/S012)
Editor: Priyambodo RH
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