Oji Holdings of Tokyo, Japan, has confirmed that it is to set up a new corrugated factory in Indonesia, by way of a joint venture with PT Purinusa Ekapersada, (part of the Indonesia-based APP and Sinar Mas Group).
Susumu Yajima, President of Oji Holdings, stated that the continuing growth of the Indonesian corrugated market made the deal attractive. “By working together with Purinusa Ekapersada, who are one of the leading Indonesian corrugated packaging prodcucers, we will target the supply of corrugated packaging to the increasing local Japanese companies in the country.”
“For decades, Indonesia and Japan have cultivated strong economic ties, and today’s joint venture announcement is the latest demonstration of that special relationship,“ said, Andre Ridwan, Head, Corrugated Carton Business Unit, Asia Pulp & Paper, “The PT Oji Sinar Mas Packaging partnership will leverage our respective strengths, in the efficient and sustainable production of quality wood-based products, and to open up new markets and deepen relationships with discerning customers in Indonesia.”
The new plant, which will be about 50km east of Jakarta, will be owned 55% by Oji, with PE holding the other 45%. The companies confirmed the investment will total JPY 4 billion (approximately €31 million) and start-up is expected in January 2020.
This news follows on from the announcement in November 2018 that Oji is set to start constructing a corrugated plant in Gujurat, India, in March 2020. The investment for that project is expected to be about JPY 3 billion (approximately €23 million).