Bakrie to export cement fiber to Malaysia
Bakrie to export cement fiber to Malaysia
JAKARTA (JP): PT Bakrie Building Industries (BBI), a
subsidiary of publicly listed PT Bakrie & Brothers, has secured a
deal to export 20,000 tons of cement fiber per year to Malaysian
firm, Hume Cemboard Bhd.
Company president Anton Sukartono said in a statement on
Friday that the contract, which was worth Rp 20 billion (about
US$1.8 million) a year, was signed in January, with the first
delivery to be made next month.
He said that Malaysian building firms had no choice but to
import their cement fiber requirements as most local cement fiber
producers had shifted into other industrial activities.
"The exports to Malaysia will account for about 20 percent of
our production capacity. With this we are optimistic we will be
able to meet our target of selling 11.5 million standard meters
(std.m), or about 88,500 tons this year," Anton said.
The company also expected its revenue would increase by 20
percent this year, he added, but he failed to provide any further
details.
According to him, his optimism was also based on the company's
achievement of obtaining ISO 9002 last year, which would enable
the company to sell its products more easily on the international
market.
BBI produces building materials such as cement fiber with a
production capacity of 13 million std.m, or 100,000 tons, a year
and Arco panels with a production capacity of 60,000 tons a year.
Besides selling its products on the domestic market, BBI also
exports part of its production to Sri Lanka, Bangladesh and the
Maldives.
Last year, the company's sales volume rose by 28 percent to 11
million std.m from 8.5 million std.m, while its revenues
increased by 33 percent.
About 95 percent of the company's total revenues were
contributed by cement fiber sales, he said, adding that the
company controlled 26 percent of local cement fiber market.
BBI was formed in 1976 under the name of James Hardie
Indonesia.
After Bakrie & Brother acquired James Hardie in 1986, James
Hardie's name was changed into Jaya Harflex Indonesia, which
eventually became BBI in 1991. (05)