BASF to close tape plant<\/p>\n
JAKARTA (Antara): PT BASF Indonesia, a subsidiary of a German
\nchemical company, plans to close its magnetic tape production
\nfacility on Jan. 1 in order to focus on chemical products, its
\nchief executive announced Friday.<\/p>\n
Danny Jozal, the company's president director, said that the
\nclosure comes as part of BASF's strategy of concentrating on its
\nbasic activities.<\/p>\n
He added that BASF's head office in Ludwigshagen, Germany, has
\nsold its magnetic tape division to the KOHAP Group, a giant
\nKorean petrochemical company.<\/p>\n
According to Jozal, BASF's main business is chemical products,
\nwhile magnetic tape production, for which it is best known in
\nIndonesia, is a side business.<\/p>\n
Jozal said that the production and distribution of magnetic
\ntape will be handled by KOHAP, which for the next five years is
\npermitted to use the BASF trademark.<\/p>\n
He added that the facility was closed because the magnetic
\ntape business is sluggish and difficult to develop further.<\/p>\n
The production of chemical products in Indonesia has increased
\n20 percent, he said. His company plans to increase the production
\ncapacity of polymer dispersant -- a substance for the leather,
\npaper and textile industries -- from 52,000 tons to 110,000 tons
\nper year with an additional investment of about Rp 150 billion
\n(US$63.5 million).<\/p>\n
This year, polymer dispersant has contributed 19.2 percent, or
\nRp 80 billion, of the company's total revenues which stood at Rp
\n416 billion.<\/p>\n
Jozal said that magnetic tape contributed relatively little.
\nLast year, its contribution to company's revenues was only Rp
\n34.7 billion, or about 8.5 percent, he added.<\/p>\n
The BASF group's spokeswoman, Diana Weitenkopf, said in
\nLudwigshagen that the fate of the plant's 300 employees is still
\nbeing negotiated. BASF has been producing in Indonesia since 1976
\nand employs about 1,100 people here.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/basf-to-close-tape-plant-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
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