Indorama out to dominate polyester market<\/p>\n
JAKARTA (JP): PT Indorama Synthetics, which will become the
\nlargest polyester producer in Indonesia next year, yesterday
\nreported a 12 percent increase in its net profit to Rp 50.30
\nbillion (US$23.4 million) last year.<\/p>\n
Vice president director S.P. Lohia told the company's annual
\ngeneral shareholders meeting at its headquarters in Purwakarta,
\nWest Java, that profits increased significantly despite the
\ndecline in filament prices due to what he called dumping
\npractices by South Korea and Taiwan.<\/p>\n
\"Better management of working capital, high capacity
\nutilization, higher value added products and larger sales have
\ncontributed to the increased profitability,\" Lohia said.<\/p>\n
He said when Indorama's new US$150 million plant begins
\noperating next year, the company will become Indonesia's largest
\npolyester producer with a daily capacity of 540 tons.<\/p>\n
\"This will enable Indorama to operate with economies of scale
\nand be globally competitive,\" Lohia pointed out.<\/p>\n
The meeting approved management's proposal for a dividend of
\nRp 190 per share to be paid for the year 1993, up from Rp 175 in
\n1992.<\/p>\n
He said the additional polyester production capacity would
\nmeet the demand for polyester fibers and filament which had been
\ngrowing at an annual rate of more than 10 percent.<\/p>\n
The factory's present capacity utilization has reached 124
\npercent while its turnover has increased 25 percent, Lohia added.<\/p>\n
The financial report for 1993 showed that the company's export
\nturnover increased to Rp 109 billion from Rp 97 billion in 1992
\nand its total turnover rose to Rp 302 billion from Rp 242
\nbillion.<\/p>\n
Touching on the company's latest developments, he said that
\nIndorama's fabric division came on stream last December and was
\nexpected to achieve full capacity this year.<\/p>\n
Indorama is 34.39 percent owned by Brookgrange International
\nFinance Ltd. of the United Kingdom, 31.82 percent by PT Irama
\nUnggul, 4.73 percent by the International Finance Corporation, an
\naffiliate of the World Bank for private sector development and
\n29.06 percent by the investing public. (09)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indorama-out-to-dominate-polyester-market-1447899208",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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