Indorama out to dominate polyester market
Indorama out to dominate polyester market
JAKARTA (JP): PT Indorama Synthetics, which will become the
largest polyester producer in Indonesia next year, yesterday
reported a 12 percent increase in its net profit to Rp 50.30
billion (US$23.4 million) last year.
Vice president director S.P. Lohia told the company's annual
general shareholders meeting at its headquarters in Purwakarta,
West Java, that profits increased significantly despite the
decline in filament prices due to what he called dumping
practices by South Korea and Taiwan.
"Better management of working capital, high capacity
utilization, higher value added products and larger sales have
contributed to the increased profitability," Lohia said.
He said when Indorama's new US$150 million plant begins
operating next year, the company will become Indonesia's largest
polyester producer with a daily capacity of 540 tons.
"This will enable Indorama to operate with economies of scale
and be globally competitive," Lohia pointed out.
The meeting approved management's proposal for a dividend of
Rp 190 per share to be paid for the year 1993, up from Rp 175 in
1992.
He said the additional polyester production capacity would
meet the demand for polyester fibers and filament which had been
growing at an annual rate of more than 10 percent.
The factory's present capacity utilization has reached 124
percent while its turnover has increased 25 percent, Lohia added.
The financial report for 1993 showed that the company's export
turnover increased to Rp 109 billion from Rp 97 billion in 1992
and its total turnover rose to Rp 302 billion from Rp 242
billion.
Touching on the company's latest developments, he said that
Indorama's fabric division came on stream last December and was
expected to achieve full capacity this year.
Indorama is 34.39 percent owned by Brookgrange International
Finance Ltd. of the United Kingdom, 31.82 percent by PT Irama
Unggul, 4.73 percent by the International Finance Corporation, an
affiliate of the World Bank for private sector development and
29.06 percent by the investing public. (09)