"A great chunk or 1.8 million tons of East Java`s and Central Java`s fertilizer needs have so far been supplied by our plants in East Kalimantan and Palembang," PT Pusri President Director Arifin Tasrif said here on Tuesday.
The new plants will be built in Gresik and Cepu. "So one of the plants will be built near gas source," he said.
"We predict the presence of the two new plants will enable us to save production cost of up to US$50 million annually, not to mention the cost incurred to ship fertilizers from East Kalimantan and Palembang (to Central and East Java)," he said.
In addition, the presence of the new plants would also ensure fertilizer supplies to East and Central Java because there would no longer be constraints in the shipment of fertilizers due to high waves and bad weather, he said.
The construction of the new plants was also part of efforts to anticipate rising fertilizer needs in line with population growth that would increase food production, he said.
(T.R016/S012/O001)
Editor: Priyambodo RH
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