JAKARTA, Sept 2 Asia Pulse - State-owned plantation company PT PerkebunanNusantara (PTPN) III and PT Surya Bumi Agro Langgeng have signed anagreement with China's Guangcai Jing Xu Ltd Co. of Beijing to buildfertilizer and particle board factories in Indonesia.

The two Indonesian companies also plan to build rubber factory andlaboratory with Chinese partner in the country.

The compound fertilizer factory is estimated to cost US$100 million and isexpected to be built next year, PTPN III President Akmaluddin Hasibuansaid after the signing of the agreement in Beijing on Wednesday.

Hasibuan was in Beijing attending an Indonesia trade fair.

He said the particle board factory, to be built with the Chinese company,will make use of oil palm trees as the raw material.

Palm trees are available in abundance in the country and so far had beenthrown away as waste, he said.

The factory, to be built with an initial investment of US$5 million, wouldhave a production capacity of 10,000 tons of plywood with quality betterthan other types of plywood, he said. (ANTARA)