Dynaplast sets up venture

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)