Gurit says that it has signed an agreement to form a joint venture (JV) for balsa wood production in Java, Indonesia.

Under the terms of the agreement, Gurit will hold 55% and Setiyo Budi Nugroho will hold 45% of the shares in a newly founded company, PT Gurit Parta Balsa, which makes balsa wood blocks in Java, Republic of Indonesia.

Plans are to consolidate an exclusive supply agreement of balsa material from the plantations managed and owned by Nugroho into the JV, which will sell the products exclusively to Gurit for further processing and distribution.

The partners have agreed to invest into the plantations and processing facilities during 2017/18 to accommodate anticipated business growth.

This story is reprinted from material from Gurit, with editorial changes made by Materials Today. The views expressed in this article do not necessarily represent those of Elsevier.