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)