Thursday, 19 May 2011

INVESTMENT and TRADE - CG Power opens SEAsia’s first testing laboratory

PT CG Power Systems Indonesia (CGPSI), a power transformer manufacturer, officially inaugurated a new 550 kV extra high voltage (EHV) transformer testing laboratory at the company’s factory in Cileungsi, Bogor, on Wednesday.

CGPSI is part of Belgium-based CG Power System Group, which operates 13 transformer factories and 19 switchgear factories throughout the globe.  (full story)

Company president director Hemant Lakhotiya said that the laboratory, built at a total cost of about US$10 million, was the first of its kind in Southeast Asia.

The new testing facility was officially inaugurated by Industry Minister MS Hidayat.

He said that the operation of the modern transformer testing facility was part of the company’s goal to increase its production capacity and market share in Indonesia.

“At present, we export 80 percent of our products to Australia, New Zealand, Southeast Asia and the Middle East and we hope to increase the domestic market share to 50 percent from 20 percent at present,” he said after the launching of the facility.

He said that state electricity firm PT PLN was the major local customer and had already bought huge quantities of the new equipment. He said he hoped that it could also support local manufactured products.

CGPSI is part of Belgium-based CG Power System Group, which operates 13 transformer factories and 19 switchgear factories throughout the globe.

The company’s Indonesian subsidiary plans to expand the company’s production facilities like a switchgear factory in order to meet the surge in demand from both local and overseas buyers, Lakhotiya said, adding that the company’s current production capacity of 6,000 MVA a year would be increased to 10,000 MVA, or equal to 180 transformers and switchgears.

“The investment for the new factory will be around US$50 million, and we hope the project can commence early next year,” Lakhotiya said.

CGPSI will also need to increase the number of employees from 200 to 450 due to factory expansion, he said.

Lakhotiya also said the company expected to increase its total revenue to $110 million this year from $85 million in 2010.

In his speech at the inauguration ceremony, the industry minister urged the state electricity company to increase the use of locally made transformers and switchgears in its network expansion programs.

Hidayat said that locally made products, including those in the electricity sector such as power transformers and switchgears, already met international quality standards.

In addition, the government will provide a discount of up to 15 percent as an incentive for those who buy local products, the minister said.

He criticized PLN for buying too much power equipment from China. (drs)

Source : - may 19, 2011

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