Expansion program boosts PT Polysindo's sales

Expansion program boosts PT Polysindo's sales

JAKARTA (JP): PT Polysindo Eka Perkasa, a publicly listed
polyester producer, reported a 52 percent year-on-year increase
in net sales for this year's first nine months to Rp 1.56
trillion (US$445 million) from Rp 1.03 trillion.

According to the company's (unaudited) consolidated financial
report, operations income rose 61 percent from Jan. to Sept. to
Rp 457.4 billion from Rp 283.9 billion in the first nine months
of 1996.

The company's net income rose to Rp 130.1 billion from Rp
127.9 billion in the same period.

The company said Thursday that the rapid sales growth was due
to an increase in volume from recently completed expansions in
polymer, polyester fiber and fabrics.

Despite weak polyester prices this year, Polysindo posted an
improvement in its gross profit margins from 32 percent to 34
percent year-on-year.

"This was due to increased sales of specialty products and
added levels of vertical integration that have helped insulate
the company from price fluctuations," Anastasia Vrachnos,
director of investors relations said.

"The third quarter results were in line with expectations,"
she said.

Polysindo, one of the country's major polyester producers, is
making steady progress with a recently announced expansion
program expected to boost exports.

The company is adding yarn capacity and differential product
lines such as coated fabrics which are targeted for the export
markets of Europe, the United States and Japan.

"With start up of several specialty products expected in 1998,
we have targeted a doubling of our exports from 16 percent to 35
percent of total sales by the end of 1998," Anastasia said.

Polysindo, the Texmaco Group's flagship, makes products which
include PTA, polymer, polyester chips, staple fiber, filament
yarn and finished fabrics. (hen)