Gajah Tunggal to build $500m caprolactam plant

JAKARTA (JP): Gajah Tunggal group has signed an agreement with Lurgi of Germany and Samsung Engineering Company of South Korea to set up a caprolactam plant with US$500 million investment.

The company said yesterday the plant would be built on a 30- hectare of land in Gresik, East Java.

The plant will process key raw materials for nylon production. It will be able to make 120,000 tons a year.

Thirty-five percent of the nylon will be used by GT Petrochem Industries's nylon filament subsidiary and 65 percent will be sold domestically and internationally.

GT Petrochem Industries, formerly named Andayani Megah, posted an unaudited consolidated net profit of Rp 21.17 billion in the first quarter this year, up from Rp 11.34 billion in the same period last year.

The strong net profit growth came from three newly acquired businesses.

The company's consolidated gross profit margin was 17 percent, falling from 31 percent last year.

The company's consolidated net sales rose 183 percent to Rp 140 billion in this year's first quarter, from Rp 49 billion last year.

Thirty-nine percent of the company's first quarter net sales came from its nylon division, 14 percent from its chemical division and 58 percent from its polyester division.

The company said tire cord production was 4,300 tons in the first quarter, 13 percent more than last year.

Industrial filament production was 2,700 tons, ethylene glycol 24,900 tons, polyester filament 14,800 tons and staple fiber 11,300 tons in the 1997 first quarter. (09)