Great River to procure new machine, complete facilities

JAKARTA (JP): PT Great River Industries, a producer of brand name garments listed on the Jakarta and Surabaya stock exchanges, will procure new sewing machines and complete facilities for new branded garments in anticipation of increased demand.

"We plan to increase our sewing machines from 6,500 to 7,000 due to the increasing domestic and foreign market demand," Great River's president, Sunjoto Tanudjaja told reporters here yesterday after the company's shareholders meeting.

Sunjoto said the company will also construct a new factory on a 30-hectare site in Purwakarta, West Java and complete facilities for new branded garments in its seven-hectare industrial estate in Cikarang, Bekasi, about 40 kilometers east of Jakarta.

He said the company has increased its spot sale chains from 200 to 250, its representation from 5,200 to more than 6,000 direct customer accounts and its sales offices from 12 branches to 14, including one each in Singapore and Malaysia.

Sunjoto said the expansion program will cost about Rp 40 billion (US$18.54 million) which will be funded largely by the company's retained earnings.

Sunjoto said the company's after-tax profit grew 3.4 percent from Rp 8.38 billion ($3.88 million) in 1992 to Rp 8.66 billion ($4.01 million) last year.

The president said with the expansion program, the company expects to increase its production capacity form 18 million pieces last year to 25 million. 40 percent of the company's production capacity is for exports, Sunjoto added.

"With this expansion, we have projected that our sales this year will increase to Rp 160 billion ($74.14 million) and our profit to Rp 10 billion ($4.63 million)." Sunjoto said.

Sunjoto also said the shareholders' meeting approved the distribution of a cash dividend of Rp 50 per share.

The company holds licenses or acts as the agent for 27 brand names, including Triumph and Amo of Germany, Arrow and Donna Karan of the United States, Choya and Junko Koshino of Japan, Saville Row of Britain, Hom and Kenzo of France and Benetton of Italy.

The company's products include men and women undergarments, sportswear, including sports shoes, children's wear, non-garment textile derivative products and cosmetics. (02)