Ever Shine Tex to set up new plant

JAKARTA (JP): The integrated textile manufacturer PT Ever Shine Tex has set up a subsidiary, PT Primajuli Sukses, to produce nylon filament yarn.

Director of the firm, Erlien Lindawati Surianto, said that Primajuli Sukses would spend around US$25 million to establish the plant, which would start commercial production in June this year.

In the first stage, the new plant will produce nylon filament yarn, he said.

"Total production capacity in the first stage will be 7.7 million tons of nylon filament yarn per annum," she told The Jakarta Post after holding the company's analyst meeting yesterday.

She said 50 percent of its product would be consumed by Ever Shine Tex and the remaining 50 percent would be sold to other textile producers.

She expects the new firm to contribute around 10 percent to Ever Shine Tex's holding revenue this year.

"With only six months in production, we are expecting it to contribute around 10 percent to our sales this year," she said.

Erlien said the firm is projected to book a total net sales of Rp 237.2 billion in 1997, up from the consolidated net sales of Rp 184 billion in 1996.

She said such a high projection was supported by the 20 percent increase in the production capacity of Ever Shine Tex by the end of 1997 to 90 million tons of woven fabrics.

PT Ever Shine Tex was established in 1973 and operates as an integrated synthetic textile manufacturer of nylon, polyester textiles and garments.

She said the firm had secured loans worth $20.5 million in October 1995 to finance the company's expansion plan.

PT Indo Yongtex Jaya, another subsidiary of Ever Shine Tex, had also obtained loans worth $16 million in October 1996, Erlien said.

"Such loans are expected to boost the business of Ever Shine Tex," she said.

Erlien said Ever Shine Tex recorded a net profit of Rp 27.2 billion in 1996, up 12.3 percent from Rp 24.18 billion in 1995.

"We project to reach a net profit of Rp 34.5 billion in 1997," she said. (09)