Intan Wijaya to build another formalin plant in E. Kalimantan
Intan Wijaya to build another formalin plant in E. Kalimantan
JAKARTA (JP): PT Intan Wijaya Chemical Industry Tbk, a
formalin and wood adhesives maker, will build its third formalin
plant in Banjarmasin, East Kalimantan, an executive said here
yesterday.
Director Recsonlye Sitorus said after the company's
extraordinary shareholders meeting that Sweden's Perstop had
signed a contract Tuesday to build the plant.
He said the plant was due to begin operating in 18 months and
would be able to produce 180 tons of formalin a day.
Recsonlye said Rp 15 billion (US$6.13 million) was needed to
build the plant. Eighty percent would be financed with a loan --
with an interest rate of 7.5 percent per annum -- from a Swedish
bank and 20 percent from the company's own equity, he said.
"The plant will make the company the biggest formalin producer
in Indonesia with a total daily production capacity of 380 tons
of formalin and 570 tons of wood glue," he said.
Intan Wijaya used most of its formalin output to make
adhesives, he said.
Intan Wijaya produces liquid glue, including urea
formaldehyde, melamine, phenol and low emission resin, urea
formaldehyde powder glue and blowing agent hexamine.
"Besides selling glue, we also sell between 200 tons and 250
tons of formalin a month," Recsonlye said.
He said he expected the company's net profit to increase 10
percent in 1997 from Rp 9.4 billion last year and its sales 10
percent from Rp 53.4 billion.
He said a profit increase was possible because of increases in
its exports to Myanmar, Singapore, Malaysia and Sri Lanka, and
new exports to Hong Kong.
This year's exports were likely to contribute about 10 percent
to the company's total sales, compared to only 4.2 percent last
year, he said.
He said the company would increase its glue sales for particle
board, furniture, medium density fiber board and block board this
year.
He said the stagnation in the country's plywood production
would have a corresponding effect on its plywood glue sales.
The Association of Indonesian Wood Panel Producers has revised
downwards the country's plywood production target in 1997 to 9.6
million cubic meters from 10 million cubic meters because there
were not enough logs.
Yesterday's meeting approved a plan to pay a dividend of Rp
4.4 billion, or Rp 100 per share, and to issue three bonus shares
for every 20 shares.
The company will then split its stock by halving its nominal
value from Rp 1,000 to Rp 500 each to increase its liquidity on
the capital market.
The meeting also approved delisting the company from the
Surabaya Stock Exchange. It will maintain its listing on the
Jakarta Stock Exchange. (13)