Timah begins a factory construction in Cilegon

The Jakarta Post, Jakarta | Sat, 01/17/2009 1:23 PM  

State-owned PT Timah, the world's second largest tin producer, officially began the construction of tin chemical factory in Cilegon, Banten, on Saturday. 

Timah's president director Wachid Usman said the factory would be the first tin chemical factory owned by the company. Tin chemical is tin-based chemicals used in plastic products. 

Wachid said the chemical has been widely used in Northern America, Europe and Japan for building materials plastic goods. 

“So we're going to have good markets,” he said as quoted by tempointeraktif.com. 

The factory, worth Rp 250 billion (US$22,500) and took a eight-hectare land, is expected to produce 10,000 tonnes of tin chemical in its first year of production. 

“At the third year we are expecting for a triple size production and a break even point,” he said. 

The factory, which is one of the company's two new factories that produce tin derivatives, is part of the company's plan to expand business and anticipate a continued drop in tin prices. (dre)