Indorama posts $51.5m net profit<\/p>\n
JAKARTA (JP): Publicly listed polyester producer PT Indorama
\nSynthetics recorded an unaudited net profit of Rp 122 billion
\n(US$51.5 million) in 1996, up from Rp 120.32 billion in 1995.<\/p>\n
The company booked sales turnovers of about Rp 678 billion in
\n1996, up from 1995's Rp 675.9 billion in sales, Indorama's
\nManaging Director and Vice President Sri Prakash Lohia said
\nyesterday.<\/p>\n
\"Indorama's export volume also increased 24 percent in 1996 to
\n88,000 tons from 71,000 tons,\" Lohia told newsmen after the
\ncompany's annual public expose.<\/p>\n
The European market made up 57 percent of total exports with
\nAsia and the Middle East taking 30 percent, Australia 4 percent
\nand others 9 percent.<\/p>\n
He said the company had anticipated the global downward trend
\nin the polyester industry.<\/p>\n
According to a research conducted by Merryl Linch and Asia
\nEquity recently, polyester producers in China, Taiwan, Thailand
\nand South Korea experienced a drop in net profit because of the
\nsteep fall in capacity utilization and the cancellation of plant
\nexpansions.<\/p>\n
The research showed the net profit of Yizeng Chemical Fiber in
\nChina dropped 75 percent from 1.2 billion Rmb in 1995 to 0.3
\nbillion of Rmb in 1996. Taiwan's Far Eastern Textile's profit
\ndropped 48 percent to 1.3 billion New Taiwan dollars in 1996 from
\n2.7 billion of New Taiwan dollars in 1995, Tuntex in Thailand and
\nSam Yang in South Korea also lost profit in 1996.<\/p>\n
\"Indorama, however, recorded a remarkable performance while
\nother polyester producers lost,\" Lohia said.<\/p>\n
He said the company expected total sales of Rp 934 billion in
\n1997 and net profits of Rp 148 billion.<\/p>\n
PT Indorama Synthetics, which was awarded with Best managed
\ncompany in Indonesia for operation management by the Asian
\nInstitute of Management in 1996 and Best in Investor relations
\nand treatment by Asia Money, produces polyester filament yarns,
\npolyester staple fiber, PET resin, seven blended yarns and
\npolyester fabrics.<\/p>\n
Lohia added his company planned to invest about US$350 million
\n(Rp 829.5 billion) between 1997 and 1999 on expansion projects.<\/p>\n
He said that about US$135 million would be used to expand the
\ncompany's polyester and spun yarn plants in Purwakarta, West
\nJava.<\/p>\n
He said the company would increase polyester production by
\n36,000 tons from 149,000 tons.<\/p>\n
Indorama's Senior Financial Manager V.S. Baldwa said between
\n1998 and 1999 the company would invest another US$265 million
\nexpanding of its polyester and power plants in Purwakarta.<\/p>\n
He said the power plant would support the polyester plant.<\/p>\n
\"The company expects to finance most of the additional
\ninvestment with its own resources,\" Baldwa added.<\/p>\n
The company's share price on Jakarta Stock Exchange gained Rp
\n125 to close at Rp 2,125. (09)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indorama-posts-515m-net-profit-1447893297",
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"sponsor": "Okusi Associates",
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