PT Pabrik Kertas Tjiwi Kimia Tbk. (TKIM), an affiliate of the Sinar Mas Group, has started construction of a new pulp and tissue mill in South Sumatra to be operated by its subsidiary PT Oki Pulp & Paper Mills, which it acquired recently in July. According to TKIM Director, Suhendra Wiriadinata, the company is investing $3.1 billion in the new factory, slated to complete in Q2 of 2016.
The company has borrowed $1.8 billion from China Development Bank, using its stake in PT Oki Pulp & Paper as collateral, and will source an additional $800 million from its shareholders for the project.
The new factory will produce 2 million tons of pulp and 500 thousand tons of tissue paper annually. TKIM was established in 1972 as a caustic soda manufacturer, and today it exports about 70% of its sales to Japan, UAE and USA. It has about 13,000 employees.