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)