Cable firm raises capital

Cable firm raises capital

JAKARTA (JP): PT Supreme Cable Manufacturing Corporation
(Sucaco), a major cable and formica manufacturer, will increase
its authorized capital from the present level of Rp 50 billion to
Rp 225 billion (US$102.08 million).

"The rise in the capital, which has been approved by the
company's shareholders, will be followed by an offering of 45
million new shares to its shareholders by the middle of this
year," Sucaco's president, Elly Soepono, told reporters after the
company's extraordinary shareholders' meeting yesterday.

She declined to reveal the price of the new shares, but said
the company would probably offer the shares under a one-to-one
ratio, meaning that shareholders are entitled to buy one new
share for every old share held.

All details would be discussed in the company's next meeting
in April, she added.

"With the funds to be generated from the rights share issue,
Sucaco will increase its production capacity by around 50 percent
this year," she said.

"In terms of telephone cables, for example, we plan to double
the output capacity to 300,000 single conductor kilometers per
year from 200,000 kilometers at present," Elly said.

The company currently produces low tensile electrical cables
for household use, foamskin telephone cables, enamel electrical
cables with aluminum conductors, and medium and high tensile
cables.

It also has the capacity to produce 9,600 tons of copper cable
and 7,200 tons of aluminum cable per year.

"After the share issuance, we are optimistic that our sales
will increase by 30 percent this year," she added. (fhp)