Branta Mulia's profits up

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)