Branta Mulia to tie up with Teijin

Branta Mulia to tie up with Teijin

JAKARTA (JP): Shareholders approved yesterday PT Branta Mulia's plan to establish a joint venture company with Teijin Limited of Japan to produce polyester fiber, a raw material for tire cord.

In a statement following its shareholders' extraordinary meeting, Branta Mulia said that the planned joint venture will set up a polyester fiber plant in Citeureup, south of here, with an annual production capacity of 9,300 tons. It is scheduled to start operations in early 1997.

They stated that the meeting at the Shangri-La hotel, presided over by company's president Ibrahim Risjad, also agreed that the venture will have an authorized capital of Rp 33.75 billion (US$14.75 million), including a paid-up capital of Rp 29.25 billion. The balance will be met with loans from various financial institutions.

"Branta Mulia will have an equity of 70 percent in the joint company and Teijin Limited 30 percent," they stated.

Ibrahim Risjad said in the statement that the new company will produce the best polyester tire cord for export.

Branta Mulia, a major producer of tire cord and nylon-66 yarn in the Asia-Pacific region, operates factories in Thailand, Malaysia and Indonesia, with a combined production capacity of 50,000 tons per annum.

Branta Mulia exports its products to Southeast Asian countries, the Middle East, Africa, Australia and New Zealand. It supplies raw materials for major tire producers, such as Bridgestone, Goodyear, Michelin, Dunlop/Sumitomo, General Tire and Pirelli.

In cooperation with Goodyear and Michelin, Branta Mulia also produces tire cord for the production of aircraft tires. (kod)