Pulp Mill

Production is expected to operate on a very synergistic and competitive cost structure, as the mill is designed to utilize raw materials supplied by PT HRB's forest plantation. Our strategy is to supply the bulk of the mill's wood raw material requirements from our own forest concession and the remaining from neighbouring plantations in a socially responsible means to support the other plantations. The proximity of its raw material supply will enable savings on freight and transport costs, as well as ensure a highly reliable and sustainable supply of quality wood at all times.

PT MBBM holds a license to build and operate a bleached hardwood kraft pulp mill in South Kalimantan, Indonesia. The main equipment and machineries of the pulp mill will be supplied by Andritz AG, utilising Best Available Technology (or BAT) principles to minimize emissions and the impact on the environment as a whole. The mill will have a production design capacity of 600,000 air dry tonnes of pulp per annum and will be built within the forest concession area held by PT HRB. We plan to kick-start pulp manufacturing operations in 2010 to realise our vertical integration plans.