Glassware producer Kedaung to build factory in Mexico

Glassware producer Kedaung to build factory in Mexico

JAKARTA (JP): Publicly listed glassware producer PT Kedaung
Industrial plans to build a glassware factory in Mexico at a
total investment cost of US$150 million.

Kedaung president Probosutedjo -- the half brother of former
president Soeharto -- said on Friday the investment in Mexico was
aimed at helping the company penetrate the United States and
Latin American markets.

"The development of the factory in Mexico is part of the
company's business strategy of bringing the producer and
consumers closer together," Probo told Antara news agency in
Serang, West Java, where he oversaw the opening of Kedaung's 17th
factory.

Probo said if Kedaung did not move fast in building a factory
in Mexico, its competitors would likely beat them into the
country.

Mexico, Probo said, has better quality raw materials for
glassware than Indonesia does. In addition, it is part of the
North American Trade Agreement, which also includes the United
States and Canada.

Probo said the United States and Canada imported a large
amount of glassware from Kedaung because "importing our products
is three times cheaper than making it themselves in their own
countries".

Probo also said that Kedaung recently received a $3 million
order from Israel, which comes on the heels of President
Abdurrahman Wahid's announcement that he wished to open trade
ties with the Jewish state.

Meanwhile, Mexican Ambassador to Jakarta Sergio Lopez said
Mexico was a good location for Kedaung to reach markets not only
in North America and Latin America but also in Europe, as Mexico
has a free trade agreement with several European countries.

He acknowledged that labor costs in Mexico were more expensive
than in Indonesia, but "they have better productivity".

Probo also said Brazil had invited Kedaung to invest in their
country. (rid)