Branta Mulia's profits up

JAKARTA (JP): The publicly-listed PT Branta Mulia yesterday reported a 9.6 percent increase in its net profits -- to Rp 40.7 billion (US$17.2 million) last year from Rp 37.1 billion in 1994 -- in spite of a decrease in operating profits.

"The operating profits declined to Rp 62.6 billion in 1995 from Rp 68.3 billion due to the hike of raw material prices," the firm's president, Ibrahim Risjad, told the company's shareholders in an annual meeting here.

Branta Mulia uses petrochemical products as raw materials to manufacture nylon tire yarns and cord fabrics.

The shareholders yesterday approved the management's proposal to distribute dividends of Rp 19.1 billion, or Rp 85 for each share.

The company's factory in Bogor, West Java, currently produces 21,500 tons of tire yarns and 20,300 tons of tire cord fabrics per annum. Its plant in Thailand produces 16,500 tons of tire cord fabrics.

The Bogor factory, established in 1981, is the first tire cord fabric producer in Southeast Asia and the Pacific rim, while the Thai plant, which was set up jointly with Thai Textile Industries and Bangkok Bank, started production in 1993.

Ibrahim said Branta Mulia (with an equity participation of 40 percent) last year set up a joint venture in Malaysia with two Malaysian companies, Seacorp Venture Capital Sdn. Bhd (30 percent) and Kampong Yan Corporation (30 percent), to produce 8,000 tons of tire cords annually with an investment of $50 million.

Branta Mulia also established another joint venture with Teijin Limited of Japan to manufacture 9,300 tons of polyester tire yarns per annum in Bogor, with an investment of $55 million.

Both the Malaysian and Bogor plants will start production in late 1997.

With the operation of the new plants, Branta Mulia will increase its total annual production capacity of tire yarns and cord fabrics to 78,000 tons in 1998, from 38,000 tons at present. (kod)