JAKARTA. Sichuan Hebang Biotechnology Co. Ltd., a chemical manufacturer based in China, will invest USD 800 million for plant construction in the Special Economic Zone of Java Integrated Industrial and Port Estate (JIIPE) in East Java.

Suresh Vembu, Corporate Secretary of PT AKR Corporindo Tbk (AKRA), confirmed that as of now, Hebang has signed a conditional sales and purchase agreement for a land plot in JIIPE, managed under its subsidiary, PT Berkah Kawasan Manyar Sejahtera (BKMS). The area of the land plot upon which the plant will be built by Hebang is 67 hectares.

Not only that, Vembu said, Hebang will also ask the hand of another domestic investor to form a joint venture to handle said project. “At the same time, Hebang has signed a Letter of Intent (LoI) with the company to form a joint venture in JIIPE,” Vembu claimed.

In said LoI, there is an agreement that Hebang will gain control over 90% of shares of this joint venture, leaving the rest to AKRA.

According to IDNFinancials data, Hebang is engaged primarily in chemical manufacturing industry. Several chemicals produced by Hebang include soda ash (sodium carbonate), ammonium chloride, and other products. (KR/ZH)