Dynaplast sets up venture

JAKARTA (JP): PT Dynaplast, a publicly-listed producer of plastics and electric wire, announced yesterday that it signed a joint venture agreement with Cubic Co. Ltd. of Japan and PT Karya Agung Alexander Motor to produce printing plastics.

A Dynaplast director, Gunawan Tjokro, told The Jakarta Post that the venture, to be called PT Dynaplast Cubic Indonesia, will be the first manufacturing facility in the country to utilize Cubic printing technology.

Gunawan said that Cubic printing is a decorating system using water as a medium to apply high quality patterns to plastics and metals.

He said that when the venture begins commercial production with an initial investment of US$10 million next year, it will contribute approximately Rp 7 billion (US$2.9 million) to Dynaplast revenues.

Dynaplast, according to Gunawan, expects to book net sales of Rp 150 billion next year.

Under the agreement, Dynaplast took a majority position in the venture with a 70 percent stake, while Cubic and Karya Agung hold 20 percent and 10 percent, respectively.

Gunawan also confirmed that within the first three years of operation, the shareholders will not increase their investments in the venture. (alo)