Padang, West Sumatera (ANTARA News) - West Sumatra Province will build a sugar factory at Padang Industrial Park (PIP), to meet domestic demand of sugar and create job opportunities.
"The first corner stone of the planned sugar factory will be laid in a ceremony on April 24, 2007," West Sumatra Governor Gamawan Fauzi said here on Friday.
A total fund amounting Rp386 billion has been allocated for the construction of the sugar plant, which will be built on a plot of land measuring 40 hectares.
The sugar plant is expected to have a production capacity of 70,000 tons per year and be able to supply sugar to neighboring provinces of Riau and Jambi, Sumatra Island.
"West Sumatra want to lessen dependency on sugar imports," he said.
The province has so far imported 2,000 tons to 5,000 tons sugar to meet local demand.
The planned sugar factory is also expected to employ around 2,800 workers.
To supply the needed raw material for the would-be factory, the provincial authority also planned to develop sugarcane plantations measuring 10,000 hectares located in Sawahlunto Sijunjung, Pessel, Dharmasraya and Agam districts.
The factory's designed production capacity is about 75,000 tons in the first year of the plant`s operation.
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