Chemical firms to pay dividends of Rp 23.1b

Chemical firms to pay dividends of Rp 23.1b

JAKARTA (JP): PT Unggul Indah Corporation (UIC), an alkylbenzene producer listed on Jakarta and Surabaya stock exchanges, plans to distribute a total dividend of Rp 23.1 billion (US$10.5 million) for the 1994 book year.

The dividend payout plan was approved during the company's annual shareholders meeting on Wednesday. The meeting also approved the appointment of Hartono Gunawan as the new president of the company, replacing Johannes Kotjo.

Johannes Kotjo said earlier in the meeting that the company's dividends which account for around 75 percent of the total profits would be paid in cash, with payment of Rp 75 for each existing share and a new share for every 10 existing stocks.

He said the company's before-tax profits increased by around 10 percent to Rp 50.5 billion last year from Rp 45.5 billion in 1993. However, its net profits dropped to Rp 30.49 billion from Rp 34.3 billion

UIC, the country's only producer of alkylbenzene, a raw material in detergent production, is constructing a Paraffin Convert to Olefin (Pacol) unit, with an investment of $60 million.

The Pacol unit, which is expected to start operation in 1996, is expected to significantly reduce the production cost of its alkylbenzene production.

Kotjo explained that the Pacol unit, which will be constructed by Samsung Engineering of South Korea, will use the processing technology from Universal Oil Process, a U.S.-Japan joint venture company, under a licensing agreement signed in 1994.

"The operation of this unit will place PT UIC as one of the largest alkylbenzene producers and will raise its linear alkylbenzene output in the future," Kotjo said.

UIC produced 130,000 tons, comprising 35 percent of linear alkylbenzene and 65 percent of brach alkylbenzene, at its plant in Merak, West Java, last year. The plant, with a production capacity of 150,000 tons per annum, also produces heavy and light alkylate. (32)