PT LBM Energi Baru Indonesia is building a factory in the Kendal Economic Zone (KEK), Central Java. The groundbreaking procession or initial foundation construction was carried out last Thursday (13/7).
PT LBM Energi Baru Indonesia will produce LFP (Lithium Iron Phosphate) Cathode Material with a total production capacity of 120,000 tonnes of LFP. The factory being built has an investment value of US$ 290 million or equivalent to Rp 4 trillion.
PT LBM Energi Baru Indonesia is a subsidiary of the Singapore-based company LBM New Energy (AP) Pte Ltd which is also a subsidiary of Lopal Tech Company. Lopal Tech, which is the holding company for PT LBM Energi Baru Indonesia, was founded in 2003 and is headquartered in Nanjing, Jiangsu, China.
At the start of its business journey, Lopal Tech produced automotive spare parts such as lubricant oil and automotive chemicals. Production then developed into a leading green energy and green chemical provider in the world with a total of 16 factories and 30 subsidiary companies.
Soo Hui Jin, President Director of PT LBM Energi Baru Indonesia said that the construction of the factory in Kendal is the first investment for Lopal and LBM in Southeast Asia.
“The construction of this factory is driven by the increasing global need for lithium ion batteries as a component of electric vehicles. This is in line with the global community which is currently moving towards using green energy to reduce climate change,” he was quoted as saying in an official statement, Monday (17/17/2017). 7).
Soo hopes that the construction of this factory can be carried out according to the target, so that PT LBM Energi Baru Indonesia can start operating at the end of this year.
He also revealed his reasons for choosing Indonesia as the location for their business expansion in Southeast Asia. Soo explained, this was the first time for LBM to expand outside of China.
“We are very confident in choosing Indonesia, precisely in the Kendal Special Economic Zone. We see this based on the completeness of international standard infrastructure and the Special Economic Zone facilities provided such as tax holidays, free VAT and import duties,” he said.
When operational, the factory is projected to absorb around 1,000 workers from the Kendal and surrounding areas.
Stanley Ang, CEO & President Director of PT Kawasan Industri Kendal said, KIK will participate in supporting the process of operating PT LBM Energi Baru Indonesia by assisting with the licensing process, searching for workers, to submitting fiscal facilities from SEZ.
The Regent of Kendal, Dico M Ganinduto, was also present and welcomed enthusiastically the choice of Kendal as the location for the construction of the first LFP factory in Indonesia.
“Of course this has a sizeable impact, especially for economic development in Kendal Regency, as well as more job opportunities for local people. We also hope that with this Kendal can be increasingly looked at as an investment location in Central Java,” he said.
Image source >>> Dok/KEK Kendal