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Tire maker Multistrada to enter palm oil, coal business

JAKARTA (rambuenergy.com) – Tire maker PT Multistrada Arah Sarana Tbk [MASA.JK] said it is looking for partners to jointly develop its idle land in Kalimantan and other places. The land areas can be developed into palm oil plantation or mining business.

Vice President Director of Multistrada Henry Komala said at present the company has 127,000 hectares of land in Kalimantan. Initially, the company wanted to develop rubber plantation, however, some of the areas are not suitable for rubber plants. The soil is either too wet or too many stones underneath.

The character of the soil is suitable for palm plantation and some parts are potential areas for mining. Therefore, the company, he said, is looking for partners to form joint venture companies in developing these areas.

“We are looking for joint venture partners,” Komala was quoted by Investor Daily as saying. He noted, around 100,000 hectares are suitable for palm oil plantation.

At present, Multistrada produces 28,500 units of tire per day. The company aims to raise the daily production to 32,000 units per day by developing new facilities. The construction of the new facilities is expected to be completed in 2017.

On Friday (June 19), Multistrada shares closed at Rp280 per share, unchanged from previous day. (*)

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