Hanfeng to build JV fertilizer plant in Indonesia

24 June 2008 16:19  [Source: ICIS news]

TORONTO (ICIS news)--Hanfeng Evergreen plans to build a 200,000 tonne/year joint venture nitrogen phosphorus potassium (NPK) fertilizer plant in Indonesia to supply that country’s tobacco and palm oil markets, the Toronto-based producer said on Tuesday.

 

Under a letter of intent with Indonesian palm oil and tobacco producer Matahari Kahuripan Indonesia (Makin Group) and agricultural distributor Sumber Agrindo Sejahtera, the plant would be build in Surabaya, close to feedstock sources and port infrastructure, Hanfeng said.

 

The $30m (€19m) facility would use Hanfeng’s patented slow release technology, it added.

 

The partners had already secured the necessary site and begun a detailed feasibility study, Hanfeng said. If it goes ahead, construction would start later this year with completion expected in late 2009.

 

Target markets for the plant’s NPK fertilizer products were tobacco plantations and the rapidly growing palm oil sector, a major source of biodiesel, Hanfeng said, adding that the bulk of the output was expected to be absorbed by Makin Group.

 

Indonesia’s 4m hectares of oil palm plantations were projected to grow to 7m hectares by 2015, it added.

 

Hanfeng is described as the largest producer of slow and controlled release fertilizers in China.

 

($1 = €0.64)

 

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By: Stefan Baumgarten
+1 713 525 2653

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