PT UIC plans to establish $7.25m subsidiary in Vietnam<\/p>\n
JAKARTA (JP): PT Unggul Indah Corporation (UIC), Indonesia's
\nonly producer of alkylbenzene, will establish a subsidiary in
\nVietnam, distribute cash and share dividends and issue bonus
\nshares.<\/p>\n
The company's president, Johannes Kotjo, said after annual and
\nextraordinary meetings of its shareholders yesterday that the
\nplanned Vietnamese subsidiary, called UIC Vietnam Co. Ltd, will
\nproduce alkylbenzene sulfonic acid and sodium lauryl ether
\nsulfate, chemical substances used for the production of
\ndetergent.<\/p>\n
"The operation of UIC Vietnam will be beneficial because it
\nwill use Alkylbenzene from UIC and the prospect of its business
\nis bright because it will be the only producer of such a chemical
\nsubstance in Vietnam, a country with a population of 70 million
\npeople whose economy is expanding rapidly," Kotjo said.<\/p>\n
The establishment of UIC Vietnam will need US$7.25 million in
\ninvestment, of which $2.75 million will be provided by UIC and
\nthe other $4.5 million from banking loans, he said.<\/p>\n
"The company's expansion in Vietnam will not cause capital
\nflight because the borrowing will come from foreign banks," he
\nsaid. Furthermore, profits from the Vietnamese operation will go
\nback to Indonesia."<\/p>\n
He said UIC, listed on the Jakarta and Surabaya stock
\nexchanges, will be the sole owner of UIC Vietnam which is
\nexpected to start operating later this year with a production
\ncapacity of 30,000 tons per annum.<\/p>\n
New unit<\/p>\n
Kotjo said UIC will also invest about $50 million to $60
\nmillion for the construction of its third processing unit in its
\nindustrial complex in Serang, West Java.<\/p>\n
The new unit will not increase UIC's annual production
\ncapacity, which last year increased to 150,000 tons from 90,000
\ntons, but it will make the company more flexible in making
\nbiodegradable Linear Alkylbenzene and use cheaper raw materials.<\/p>\n
Kotjo also explained that UIC will distribute 1-for-7 share
\ndividends and cash dividends of Rp 150 per share from its 1993
\nprofit.<\/p>\n
The operational profit actually increased by 17.1 percent from
\nRp 38.85 billion in 1992 to Rp 45.52 billion last year but
\nbecause its non-operational revenues fell by 37.1 percent while
\nits tax payments rose 32.8 percent, its after-tax profit declined
\nby 10.6 percent from Rp 38.48 billion or Rp 583 per share to Rp
\n34.37 billion or Rp 521 per share.<\/p>\n
The issuance of bonus shares, which will come from the
\ncapitalization of agio from the public offering in 1989, will not
\nincrease the value of investors' capital and can cause declines
\nin the prices of the company's shares on the capital market.<\/p>\n
UIC's shares were quoted at Rp 6,075 per share on the JSX on
\nWednesday.<\/p>\n
The cash dividends will be distributed on Sept. 12 to those
\nlisted as share holders on August 12, while the stock dividends
\nand bonuses will be distributed after an approval from Ministry
\nof Justice on the changing of the company's statute.<\/p>\n
Kotjo said PT UIC's production last year increased by 34
\npercent to 120,000 tons.<\/p>\n
UIC's main products are branched alkylbenzene (BAB) and linear
\nalkylbenzene and its byproducts are heavy alkylate and light
\nalkylate.<\/p>\n
UIC's subsidiary, PT Petrocentral, produced 44,192 tons of
\nsodium trypoly phosphate last year, which indicated a 10 percent
\nincrease over 1992.<\/p>\n
IUC's sales increased by 18.6 percent to Rp 175 billion last
\nyear, while the sales of Petrocentral rose 13 percent to Rp 62.8
\nbillion. About 95 percent of the two companies' production is
\nsold domestically and the remainder is exported.(yns)<\/p>",
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"sponsor": "Okusi Associates",
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