Saipem has started construction of a 2.5 trillion rupiah ($271.2 million) fabrication yard on the island of Karimun in Riau province, which will be the contractor's largest facility.
The yard, covering about 1.4 square kilometres, will be able to build 30,000 tonnes of structures and equipment.
The intent is to target both the Indonesian and regional markets from the Karimun yard, which is expected to come into operation in 2010.
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