Sat, 27 Sep 2003

Jakarta Stock Exchange suspends Goodyear trading

The Jakarta Post, Jakarta

The management of the Jakarta Stock Exchange (JSX) announced on Friday it has suspended trading in the shares of tire maker PT Goodyear Indonesia following reports that the company stopped production last week.

The press reports also said that the company had laid off its workers.

In a press statement, the JSX said that the suspension of the company's shares had been effective since 9:30 a.m. Friday.

Goodyear is required to inform the exchange about the company's operations and other necessary information related to the company's prospects.

Goodyear shares were being traded at Rp 4,000 each before the JSX announced the suspension.

Meanwhile, Goodyear corporate secretary Maju Tarigan denied the press reports.

He told The Jakarta Post on Friday that slowing production at its manufacturing plant in Bogor, West Java, was mainly due to regular maintenance work at the facility, and some workers had to undergo a training program.

He explained that the maintenance work was needed because the plant operated 24 hours every day.

The plant produces around 2 million tires a year, he said, adding that production remained stable at this level.

Maju said that Goodyear employed some 850 workers, of which nearly half had to go on a two-week training program.

The earlier press reports quoted a company source as saying that production had been halted on Friday last week because of weakening sales.

Elsewhere, the JSX also announced that it had delisted multifinance firm PT Manly Unitama Finance after its management failed to provide information to the exchange about the company's business prospect.

The JSX suspended trading in the company's shares in May following a sharp drop in the company's performance in 2002.