The factory is planned to be built with a capacity each of about one million tonnes of urea per year or equal to the largest factory, Kaltim V, which will be built PT Pupuk Kalimantan Timur (PKT) in July 2011 in Bontang.
PT Pupuk Sriwidjaja has the potential to earn a savings of U.S. $ 158 million per annum by building two new factories in Gresik and Cepu. These savings came from transport costs and energy usage.
According to President Director of PT Pusri Arifin Tasrif which reports the Tempo, the construction of the plant will replace the supply of fertilizer from Borneo and Sumatra. Companies can also save on distribution costs at least U.S. $ 50 million per year. The new factory is also expected to save energy in the form of gas costs up to U.S. $ 9 million per year.
Investment needed for such development could reach Rp 10 trillion to Rp 11 trillion. About 30 percent of the funding comes from internal cash, while the rest from external financing. According to Arifin, the company is still reviewing financing from external sources.
Currently the company is still waiting for the certainty of supply of gas from Cepu Block. However, Arifin hope to have some certainty of supply of energy at the latest by the end of this year. If you've got a certainty, then the loan can be done immediately and construction could begin next year. The plan, development will be completed in 2014.
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