Wed, 26 Jan 2000

Belgian firm opens textile machine parts factory

TANGERANG (JP): PT Southwest Screens & Filters, a subsidiary of a Belgian company, officially opened on Tuesday Indonesia's first screen and filter factory.

President of PT Southwest Screen & Filters Paul Heymans said the new plant, the first screen and filter production facility in Indonesia, would be able to reduce textile producers' dependency on imported textile machine components.

The factory, he said, started producing last September tailor- made screen and filter components the synthetic fiber industry used for its machines.

"We don't mass produce, each customer wants a different product," Heymans said during the opening of the factory.

He projected sales this year would reach US$1 million in the domestic market and $500,000 in export sales, citing Thailand and Taiwan as countries which had already placed orders.

Among the major local buyers, he said, were PT Texmaco Taman Synthetics and PT Indorama Synthetics.

The company is wholly owned by Belgian-based Southwest Screens & Filters Belgia with an investment of $800,000 and 32 employees, including four expatriates.

Its production capacity for screens is 100,000 pieces while that of filters reaches 500 pieces.

According to data from the Central Statistics Office (BPS), 1999's imports of textile machine components amounted to $55 million, down from $98 million in 1998 and $130 million in 1997.

Agus Tjahajana, the director general of metal, machinery, electronics and miscellaneous industries, said the declining imports were a result of the economic crisis.

"Opportunities for a textile machines component industry were, therefore, still wide open," Agus said.

Belgian Ambassador Luc Darras said Indonesia could expect strong commitments from Belgian investors, even though their investments were relatively small.

"Belgian are modest investors," he said commenting on the investment of Southwest Screens & Filters.(03)