Polyester producers to increase capacity<\/p>\n
JAKARTA (JP): PT Indorama Synthetics has assigned five foreign
\ncompanies to provide technical assistance and plant equipment for
\nits expansion projects which will make it the largest polyester
\nproducer in Indonesia.<\/p>\n
Under the agreements signed here on Friday, Du Pont of the
\nUnited States, Chemtex of the United States, Toyobo of Japan,
\nNissho Iwai of Japan and Barmag of Germany are required to expand
\nIndorama's polyester production capacity from 180 tons per day at
\npresent to 420 tons per day by December 1995.<\/p>\n
Indorama's president, Vinod Laroya, told reporters that the
\nexpansion project will cost US$135 million, which will partly
\nfinanced by the International Finance Corporation, an affiliate
\nof the World Bank, and loans from a syndication of foreign banks.<\/p>\n
Indorama's finance manager, Arvind Parakh, said his company
\nplans to further increase its polyester production capacity by
\nanother 240 tons per day by 1997, bringing its total capacity to
\n660 tons per day.<\/p>\n
He added that the expansion of the polyester plant is part of
\nthe company's expansion and diversification projects worth $279
\nmillion.<\/p>\n
The other projects include the expansion of the company's
\nspinning plant, which will cost $10 million, and its weaving
\nplant, that will cost $20 million, he said.<\/p>\n
The company will also expand the capacity of its PET resin
\nplant with an investment of $43 million by next year.<\/p>\n
Parakh said the expansion and diversification projects will
\nincrease the company's total annual sales and profits to Rp 760
\nbillion ($351.5 million) and Rp 100 billion, respectively.<\/p>\n
The company's net profit is estimated to increase from Rp 50
\nbillion last year to Rp 60 billion this year, he said.<\/p>\n
Korean firm<\/p>\n
Meanwhile, PT Sunkyong Keris Indonesia, a South Korean-
\nIndonesian joint venture, said here Friday that it will double
\nthe daily production capacity of its polyester plant in
\nTangerang, West Java, from 90 tons to 180 tons with an investment
\nof $75 million.<\/p>\n
A spokesman for Sunkyong Keris, a company jointly owned by the
\nSunkyong Group of South Korea and the Batik Keris Group of
\nIndonesia, said that construction of the expansion unit will
\nstart in November and be completed by December 1995.<\/p>\n
The capacity expansion is expected to increase the company's
\nsales revenues by $70 million per annum, he said.<\/p>\n
The spokesman said the company's sales reached $100 million
\nlast year.<\/p>\n
He said Sunkyong Keris will also invest $38 million for the
\nconstruction of a polyester resin plant with a production
\ncapacity of 200 tons per day.<\/p>\n
\"We will start constructing the polyester resin plant next
\nJanuary,\" he said, adding that the construction is scheduled to
\nbe completed by December 1995.<\/p>\n
The operation of the polyester resin plan will likely
\ncontribute about $75 million in sales revenues per annum, he
\nsaid.<\/p>\n
Sunkyong Keris exports part of its products to the United
\nStates and a number of European and Southeast Asian countries.
\n(05\/rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/polyester-producers-to-increase-capacity-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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