Determinan to expand business

Determinan to expand business

JAKARTA (JP): PT Determinan Indah, a subsidiary of publicly- listed aluminum extrusion company PT Alumindo Perkasa (Alkasa) plans to expand its business next year at a cost of Rp 15 billion (US$6.53 million).

A director of Alkasa, Adjie B. Hassan, told The Jakarta Post that to finance the expansion, Alkasa has approval from its shareholders for the subsidiary's plan to issue new shares which will increase and strengthen its capital base.

The shareholders, in a recent extraordinary meeting here, also approved the management's plan to issue three bonus shares for five old shares in Determinan.

"The new share issuance, however, will not change Alkasa's position as the majority shareholder. We will still hold a stake of more than 50 percent in the company," said Adji.

At present, Determinan's main products are fabricated aluminum and stainless steel but Adjie declined to mention the company's production capacity.

Adjie said that the expansion will allow the subsidiary to produce aluminum profiles next year, with a monthly capacity of about 150 tons to 250 tons.

Determinan was founded in 1973 as a foreign investment company and became a domestic firm in 1993.

It is 66.38 percent owned by Alkasa, 18.06 by the Jakarta City Administration, 10.52 percent by Gesit Aluminium and 4.05 percent by Sankyo.

Determinan's total assets increased by 15 percent from Rp 16.9 billion as of the end of 1994 to Rp 19.5 billion as of Sept. 30. (08)