Indorayon expands capacity

JAKARTA (JP): PT Inti Indorayon Utama, a rayon fiber and pulp producer listed on the capital market here, will invest US$140 million for the expansion and modification of its plant in North Sumatra.

The company's corporate secretary, P. Daritan, said in a statement yesterday that the firm will expand the production capacity of its rayon fiber factory by 40,000 tons per annum at a cost of $110 million.

The company currently has a capacity to produce 60,000 tons of rayon fiber and 220,000 tons of pulp per annum.

"The construction of the expansion project will start in the third quarter of 1996 and will be completed by the end of 1997," Daritan said.

He said the company will also modify its plant, so that it can produce dissolving pulp, a material used for the production of rayon fiber, at a cost of $30 million.

He said the company gained an estimated net profit of Rp 89.2 billion ($39.1 million) during the first six months of this year from total sales revenues of Rp 320.9 billion. (01)