APP Major Stakeholder in New Indonesian P&P Mill
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Asia Pulp & Paper Group (APP) Singapore, reports that its PT Pabrik Kertas Tjiwi Kimia Tbk and PT Pindo Deli pulp and paper mills have completed the acquisition of a 70.58% share (each 35.29%) in PT. OKI Pulp & Paper Mills, a company currently developing a pulp and paper mill in South Sumatra, Indonesia. The new mill will be situated on 2,600 hectares in Ogan Komiring Ilir in Palembang, South Sumatra, with an additional 200 hectares for the development of a port. Civil works are starting this year, with the first phase of commercial production expected to begin in 2016. The new mill is expected to produce around 2 million air-dried metric tpy.
PT OKI Pulp & Paper Mills will use the most advanced environmental technology and standards available, APP notes. Clean and self sufficient energy generated from the pulp production process and wood bark gasification will power the mill. The new facility also plans to comply with the European Union's standards for Integrated Pollution and Prevention Control (IPCC).
Some 10,000 direct and indirect jobs will be provided by the new mill, with the objective of employing a largely South Sumatran workforce. Local job creation and economic development is a top priority for the province. PT OKI Pulp & Paper Mills will only use plantation wood for its raw material.
Aida Greenbury, director of sustainability at APP, said that "expansion of our production capacity is essential if we are to continue to meet customer demand and to further strengthen Indonesia's presence in global trade. Working together with its sister companies, local government, and other stakeholders, this new mill will continue to uphold and implement APP's Sustainability Roadmap Vision 2020 and our commitments to No-Deforestation. It will ensure that we can achieve sustainable economic development in South Sumatra, respect community rights, provide employment, and ensure that forest biodiversity is protected, across our entire supply chain."
The APP Group is one of the world's largest vertically integrated pulp and paper companies, with an annual combined pulp, paper, and converting products capacity of more than 19 million metric tons. APP-Indonesia and APP-China currently market their products in more than 120 countries across six continents. The majority of APP's production facilities are Chain-of-Custody certified by SVLK, LEI, and PEFC.
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