Indonesian Pulp and Paper firms plan mergers

Indonesian pulp and paper companies are planning mergers and output cuts due to weakening demand and a drop in sales price, Mr. Mansyur, the head of the Indonesian Pulp and Paper Association, said Mr. Mansyur also said that the pulp and paper industries need additional working capitals of US$ 500 million to US $700 million in anticipation of surging demand after the global crisis were over. “We believe there will be improvements in the pulp market in the second semester of 2009,” he informed.