Wahyuddin Bagenda, the president of the state company, said here Tuesday that the factory which has a capacity of 60 megawatts per year, will produce silicon crystalline solar energy
"The construction is underway and the factory is expected to be operational in early July 2013," Bagenda told ANTARA news agency.
The company will put up 40 percent of the investment and the rest in loan is being sought from Bank Mandiri Tbk and Bank Negara Indonesia Tbk, he said.
The company will establish a joint venture with state energy company PT Pertamina to take over the project running next month, he said.
He said PT Len Industri has on hand new solar cell procurement contracts worth US$300 million secured in the first half of the year.
The contracts were awarded by companies operating in the transport, energy, navigation sectors , he added.
He said he is optimistic the new contracts would jack up the financial performance of the company.
This year the company is set to chalk up US$180 million in sales with 3 percent profit margin, he said.
The company provided railway signals for the Cirebon-Brebes-Pekalongan-Surabaya double track .
Improving performance gives optimism that the company would be successful in its plan to launch initial public offering in 2015, he said. (ASG/F001)