DAHANA NEEDS $300M TO BUILD PROPELLANT FACTORY

Dahana needs some $300m to build propellant factory (Photo: bluesbrotherscentral)

Bandung, 22 Dzulqa’dah 1435/17 September 2014 (MINA) –The State-owned explosives maker PT Dahana needs an investment of between US$250 million and $350 million to build a propellant factory in Subang, West Java, according to a statement made on Monday by president director F. Harry Sampurno.

“We will use our own cashflow as well as obtaining funds from our partners,” Harry said after signing a Memorandum of Understanding (MoU) with state-owned land system and weapons maker PT Pindad president director Sudirman Said.

Harry said that the large amount of money was needed for the factory to work to full capacity. The factory is to be built in a 600-hectare plot of land alongside offices, laboratories and warehouses, The jakartapost quoted by Mi’raj Islamic News Agency (MINA) as reporting.

Sudirman said that his company had agreed to buy propellant from Dahana for Pindad’s ammunition, having previously imported its propellant.

Pindad senior vice president for defense and security products, D. Bambang Muyono, said that the company needed between 200 and 250 tons of propellant to produce small-caliber ammunition. Pindad needs a larger amount of propellant as it also produces large-caliber ammunition.

Bambang added that he expected Pindad to sell more cheaply its products made with domestic propellant.

He said that propellant constitutes some 20 percent of production costs due to transportation and costly dangerous goods insurance.

Harry, meanwhile, insisted that Dahana would maintain the quality of its product and provide a competitive price and on-time delivery, even though the deal involved cooperation between state-owned companies.

“Our top priority now is to fulfill Pindad’s needs,” he said.

Dahana was marked with the establishment of dynamite plant (NG based) in 1966 situated in the area of Tasikmalaya Air Force base. With the development of technology and market demand, Water Based Emulsion Technology, with a higher degree of safety, was tranfered in 1991 with the product of Cartridged Emulsion. DANFO plant was erected in the following year on Dahana’s own engineering capability.(T/P009/R03)

Mi’raj Islamic News Agency (MINA)