Apac to set up cotton plantation in Australia

JAKARTA (JP): Publicly listed textile producer PT Apac Centertext Corporation plans to open a cotton plantation in Queensland, Australia, to support its garment production.

Apac president Benny Soetrisno said his company would team up with Australian firms.

"Mr Kotjo (vice chief commissioner Johannes Kotjo) is still negotiating the plan with an Australian partner," he said after the company's shareholder meeting Thursday.

He said he hoped an agreement could be reached by the end of the year.

He refused to explain how much the project would cost but said Apac would be the majority shareholder in the joint venture which would manage and operate the plantation.

The shareholders meeting approved the expansion program for the production of yarn, greige fabric and denim finished fabric.

PT Apac, formerly PT Mayatexdian Industry, operates six garment companies in Jakarta and Semarang.

He said yarn production would increase to 687,000 a year from 412,000 now, greige fabric to 124 million meters a year from 87 million meters and denim finished fabric to 60 million yards a year from 20 millions.

"We plan to be among the 10 biggest denim producers in the world," he said.

To support the company's factory in Bawean, Semarang, it has signed a memorandum of understanding to set up a 100 MW steam power plant worth US$50 million.

He said the power plant is owned by Apac (30 percent), Vander Horst (40 percent) and East Philippine Power Plant (30 percent).

He said the power plant would be built in two stages. Stage one with a capacity of 50 MW and another 50 MW in the second stage.

The company bought a 94.12 stake in PT Apac Inti Corpora (AIC) for Rp 408 billion last year and 40 percent of PT Pura golden Lion.

Benny said the acquisition of AIC would contribute 90 percent of its 1996 sales.

The company's Rp 491 million net profit in 1995 is expected to increase 50 percent in 1996 to about Rp 735 billion. (09)