Putra Surya to raise its equity subsidiary<\/p>\n
JAKARTA (JP): Publicly listed PT Putra Surya Dumai Industry, a
\nplywood producer, will increase its equity capital in one of its
\nsubsidiaries, PT Perawang Lumber Industry, by Rp 88.6 billion
\n(US$36.3 million) to finance the latter's laminated veneer lumber
\n(LVL) project.<\/p>\n
Putra's president, Citra Gunawan, said yesterday the company's
\nshareholders had agreed to increase its shareholding to 98.5
\npercent in Perawang by acquiring 88.6 million new shares.<\/p>\n
\"The fresh funds will be used to shift Perawang's core
\nbusiness into laminated veneer lumber (LVL) production from the
\nmedium density fiberboard (MDF),\" he said after the company's
\nfirst annual and extraordinary shareholders meetings.<\/p>\n
He said LVL prospects were much better due to its higher
\nprofit margin than the MDF, which was currently experiencing an
\nexcess capacity.<\/p>\n
The remaining 1.5 percent of Perawang is owned by the local
\nvillage cooperatives around the company's factory in the Riau
\nProvince.<\/p>\n
Citra said Perawang planned to start LVL production next year,
\nand would export most of its output to Japan, the biggest market
\nin the Asia-Pacific region.<\/p>\n
The LVL factory, estimated to cost Rp 120-244 billion, will be
\ndesigned with an annual capacity of 72,000 cubic meters.<\/p>\n
Citra projected that the Perawang LVL unit would eventually
\ncontribute about 32 percent of Surya's revenue.<\/p>\n
Perawang currently produces about 3 million cubic meters of
\nMDF.<\/p>\n
Surya Dumai produced plywood, including primary and value
\nadded or secondary processed plywood, and other wood products
\ntotaling 314,00 cubic meters last year.<\/p>\n
The company's net income (profit) rose 57 percent to Rp 44
\nbillion last year, from Rp 28 billion in 1996. Its net sales
\nrose to Rp 333 billion, from Rp 284 billion in 1996.<\/p>\n
This year, the company expects to increase net sales to Rp 350
\nbillion and net income to Rp 52 billion.<\/p>\n
The shareholders meetings also agreed on a cash dividend of Rp
\n100 a share.<\/p>\n
Citra said Rp 25 a share, or Rp 10 billion of the dividend,
\nwould be paid from the 1996 net income.<\/p>\n
The remaining Rp 75 per share, or Rp 30 billion, would be
\ntaken from its retained earnings before the company went public
\nlast year, he said. (das)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/putra-surya-to-raise-its-equity-subsidiary-1447893297",
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"sponsor": "Okusi Associates",
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