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Jabatex Group wins ISOs to enter int'l market

Jabatex Group wins ISOs to enter int'l market

Starting as a home industry with just one modest machine more
than 30 years ago, Jawa Barat Textile (Jabatex) has become a
leading group focusing in textiles. Jabatex Group now runs
several subsidiaries, specializing in spinning, knitting, dyeing
and finishing. As a well-established and experienced firm, it is
one of the largest yarnmakers and fabricmakers in Indonesia. The
group has pledged to produce and create qualified products
consistently and enter both domestic and international markets.
Seven ISO certificates won simultaneously by Jabatex Group is a
proven track record for the group to gain better positioning.

JAKARTA (JP): Jabatex Group, founded by Effendi Gunawan in
1964, is a textile business group comprising PT Jabatex, PT Djoni
Textindo, PT Gunawan Textindo and PT Effendi Textindo. The group
has developed significantly into a leading textile producer and
has won seven ISO certificates as part of its expansion plan to
penetrate greater international market.

PT Jabatex has won an ISO 9002 certificate, while PT Djoni
Textindo, PT Gunawan Textindo and PT Effendi Textindo won both
ISO 9002 and ISO 14001 certificates.

Jabatex Group President Commissioner Indra Gunawan, MBA, said,
"It's a common requirement now that one must gain ISO
certification when entering international markets."

He said that international consumers always asked about
international qualifications both for quality management and
environmentally friendly aspects for any industries intending to
enter a worldwide market.

"That's why we tried our best in recent months to gain the ISO
certificates," he said, adding that the company would remain
doing so to keep up its quality.

He said that to gain the ISO 14001 certification, the three
subsidiaries (PT Djoni Textindo, PT Gunawan Textindo and PT
Effendi Textindo) had to prepare acceptable waste management and
other procedures, which relate to natural resources.

"We're glad that we have won the ISO awards from SGS. This is
now our time to go global and take the opportunity to earn more
income in U.S. dollar," he said.

PT Jabatex, which operates a factory in Cibodas, Tangerang, is
situated near a natural water resource. The factory is equipped
with an integrated waste-processing system allowing it to work
continually under environmentally sound condition.

PT Jabatex had already entered international markets
indirectly, in that its products are purchased by local garment
producers whose goods are sold internationally.

In 1996, half of Jabatex Group's total sales were aimed at
international markets, including Japan, Hong Kong, China,
Australia, the U.S., Europe and other Asian countries. Most of
its total exports were cotton yarns, while the remaining
comprised fabrics and other cotton products.

At this time, Jabatex Group is the biggest supplier of combed
cotton yarn to Hong Kong and one of the three biggest combed
cotton yarn suppliers to Japan. Its finished fabrics are 60
percent targeted to domestic export-oriented garment producers.

Jabatex Group President Director Hendra Gunawan, MBA, said,
"It's now the time to export our products (knitted fabrics)
directly to international markets."

PT Jabatex is targeted to enter markets in nations well-known
for their textile industry, such as China, Sri Lanka, Bangladesh,
Hong Kong and even the U.S. and Europe, he said.

"We are confident that we will be competitive enough to enter
the markets in the targeted countries because we already produce
high-quality products. Now, with the ISO certificates, we are
ready to compete with existing rivals," he said, adding that the
market was very promising.

He said the main rivals would be local industries in the
targeted countries. "They're good manufacturers. China and
Bangladesh, for instance, are the largest exporters of knitted
garments to Europe and the U.S. But we are also making quality
products," he said, adding that PT Jabatex would also work to
maintain its local market.

"We have to be very careful as foreign textile industries also
eye larger markets in Indonesia. In addition, there are products
entering the local market illegally which have attracted several
local garment producers. It's a hard challenge but we have to
maintain local customers," he said.

PT Jabatex's aim is to capture customers who produce good-
quality garments, he said. "With the ISO certificates, we're
ready to compete. So far we've been successful in limited
international markets with the Okotex certification required by
Germany."

With its ISO certificates, Jabatex Group would also keep
improving its performance, he said. "It will be harder now, after
having gained the ISO certificates, as we must serve our
customers much better. With the ISO certificates, we have to
reach the goal of zero defects, zero customer complaints and on-
time delivery."

He said that Jabatex Group would also keep its reputation as a
textile business group producing high-quality environmentally
friendly goods.

Since its incorporation, Jabatex Group has established a
vision for advancement by creating an integrated group of
upstream and downstream cotton yarn and knitted fabrics.

PT Jabatex, which was established in 1975. Its yearly
capacities are 18,000 metric tons of knitting fabrics and 20,000
tons of dyeing and finishing fabrics.

With over 30 years of specialized experience in knitting,
dyeing and finishing, PT Jabatex now has more than 500 machines
manufacturing 18,000 tons of fabric annually, and the company has
become one of the largest fabricmakers in Southeast Asia. With a
wide range of machinery, PT Jabatex produces several fabric types
required by local and international markets.

The group also runs a plant at Pasar Kemis, Tangerang, West
Java. The 17-hectare PT Jabatex knitting factory has a workforce
of 1,000 and features various types of machinery, including
modern circular knitting machines for single jerseys, interlocks,
rib, strippers and varied gauge flat knit.

PT Jabatex's wide range of production machines comprises those
for pretreatment, mercerizing, gas singing and scouring
bleaching. Other facilities comprise machinery for cotton yarn,
TC, CVC, TR, Polyester, Rayon and Acrylic dyeing machines and
finishing fleece, Stantering, Weiss Calender, Wet Calender and
Dryer. Other high-tech devices include Sando, Monfort, Kranz,
Mayer & Co., Fukuhara, and Hisaka machines.

PT Djoni Textindo, incorporated in 1989, specializes in
spinning to produce combed cotton yarn. The company has a
capacity of 33,600 spindles.

A second spinner was established in 1989. The new company,
called PT Gunawan Textindo, has a capacity of 38,400 spindles.

The two companies, PT Djoni Textindo and PT Gunawan Textindo,
are located in Cikupa, Tangerang, on a 14-hectare plot. The two
firms, which employ a total of 900 workers, obtain raw materials
imported from the U.S. and Australia.

Production includes cotton yarn from 72,000 spindles. To
anticipate expansion, an area has been arranged to accommodate an
additional 80,000 spindles when necessary.

The growth in demand of the products has encouraged Jabatex
Group to set up a new factory four years ago, in 1996. The third
company is PT Effendi Textindo, which is located two kilometers
from the first two factories. The company operates the most
sophisticated machinery, producing 35,000 bales of combed cotton
yarns per year. The 10-hectare PT Effendi Textindo site is
prepared to expand with 40,000 spindles.

The three plants now have a combined capacity of 108,480
spindles producing 85,000 bales of combed cotton yarn and 15,000
bales of carded cotton yarn per year. Over 80 percent of the
production output, comprising Ne 20'S, Ne 26'S, Ne 30'S , Ne 32'S
and Ne 40'S combed and carded cotton yarn, is manufactured for
export.

Jabatex Group draws its strength from the harmony within its
divisions and subsidiaries. Jabatex Group's focus on integration
brings many competitive advantages in ensuring raw material and
yarn supply, efficiency, production flexibility, economy of scale
and the Group's performance as a whole.

As the country's leading yarnmaker and fabricmaker, Jabatex
Group always tries to anticipate what the consumers want in
fabrics and fashion design. Its products can be made based on
specific requirements or from its catalog of a wide range of
fabrics.

Jabatex Group uses various types of high technology machines,
allowing it to produce high-quality products. It is also
experienced in dyeing technology and continually conducts
research and development testing to maintain and increase quality
control and fabric variety.

The products are developed in-house at PT Jabatex's
computerized design studio, making thousands of designs every
year. The designs are initiated in part through customer feedback
from international agent offices and by the creative touch of its
own designers. The care taken by the designers is matched by
those who direct computer-controlled processing which creates
knitting products to the specifications required by customers.

PT Jabatex's products are known for their affordability,
durability and comfort. The cotton fabrics are best suited for t-
shirts, polo shirts and sportswear.

The products are regularly purchased by local garment
industries.

Hendra said that good-quality knitted fabrics could be
distinguished by their weight or gramage, setting, color fastness
and shrinkage.

"That's the basic requirement. Sometimes customers need up to
10 items for their best products," he said, adding that PT
Jabatex always manufactured good products to maintain its
reputation.

"Apart from quality, one of the major points in this kind
industry is on-time delivery. Especially now, when we are
entering the international market, precise delivery is essential,
or customers will drop us," he said.

As an integrated textile industry producing quality products,
Jabatex Group has successfully maintained its position as well as
increased its market network in line with local and international
demand. Acknowledgement of the high quality of its products is
proven by its wide acceptance.

"This year, our target is to market 20 percent of our knitting
fabrics internationally," Hendra said.

The group aims to develop in the future and targets increased
annual growth rates by creating value-added products, focusing on
employee training and skill development. It hires a total of
3,500 workers, of which more than 50 are professional managers.
Intensive and external training courses, in addition to
educational activities, are regularly held to facilitate the
workers. Jabatex Group also sends selected employees to several
seminars in Indonesia and abroad to obtain further expertise.

Jabatex Group has a vision to grow. With all its experience
and expertise, it is well positioned to meet the challenges and
chances as the global market emerges.

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