Argo Pantes and Great River sign export deals

JAKARTA (JP): Two major textile and garment manufacturers, PT Great River International and PT Argo Pantes, yesterday signed contracts in Kyoto with their Japanese customers to secure a bigger share of that country's market this year.

Great River, an integrated garment manufacturer and retailer, signed export contracts worth US$115 million for 1997 to 1999 with four major Japanese firms: Choya Corp, Gunze Ltd, Toyobo Co Ltd and Mitsui & Co Ltd.

Textile manufacturer Argo Pantes signed memorandums of understanding with several Japanese firms to secure itself a 40 percent increase in textile exports to Japan from $54.4 million last year.

Argo Pantes' Japanese textile buyers included Sumitomo Corp, Marubeni Corp, Tomen Corp and Toray International Corp.

In the deals, Sumitomo agreed to increase its imports of textile and textile-related products from Argo Pantes by 37.5 percent to reach $11 million a year while Marubeni would increase its textile procurements by 38.9 percent to $5 million a year.

Tomen will raise its imports from Argo Pantes by 47.5 percent to $9 million a year and Toray International by 42.9 percent to $6 million.

Great River President Sunjoto Tanudjaja said yesterday that the contracts would ensure an increase in the company's exports to Japan which three years ago had only reached $30 million.

The company currently exports shirts for Choya, yarn and socks for Gunze, knitted fabric for Toyobo and garment for Mitsui's Itabashi.

Great River's exports to 20 countries currently total $50 million. Last year, its exports to Japan made up 26 percent of its total exports.

Most of its exports are made to non-quota countries, or countries which do not limit the volume of textile and textile product imports.

Argo Pantes Vice President Sidik Murdiono said the company's exports to its Japanese affiliates last year reached $54.4 million.

The company's total exports last year reached $128.3 million, or 67 percent of its total sales turnover.

Sidik said Argo Pantes currently has 25 major Japanese firms as buyers for its yarn and textile products. The imports were mostly used for Japan's domestic market while a small proportion was exported as garments and other final products.

Sidik said the increase in procurements by Japanese firms were aimed at achieving Argo Pantes' sales target of Rp 500 billion this year.

From this, 70 percent was expected to come from exports to 40 countries and the remaining 30 percent from sales to local textile and textile product companies, most of which also export their own products.

Sidik said that in the last two years, Argo Pantes spent $35 million to restructure its industrial facilities and invest in new machinery to diversify its products into finer quality yarn and fabric. (pwn)