Japan and Singapore firms join Great River project
Japan and Singapore firms join Great River project
JAKARTA (JP): Toyobo Co. Ltd, a major Japanese cotton
producer, PT Great River of Indonesia and Tung Mung International
of Singapore agreed here yesterday to establish a joint venture
to produce textile products.
The new joint venture, PT Toyobo Knitting Indonesia, will soon
set up a knitting plant in Kerawang of West Java with a
production capacity of around 250 tons per month.
Minoru Shibata, the president of Toyobo, said the joint
venture will invest around US$25 million for the establishment of
the knitting plant.
He said the new company, 60 percent owned by the Japanese
firm, 32 percent by Great River and another eight percent by Tung
Mun, is expected to begin commercial production early next year.
"Around half of the joint venture's production will be
exported," he said, adding that most of the raw materials for the
knitting plant will be supplied by local companies.
Sunyoto Tanudjaya, Great River's president, said the new joint
venture with Toyobo and Tung Mung is his company's fourth joint
operation with foreign companies.
He said that Great River, which produces garments under
licenses from 30 international brands such as Triumph, Kenzo and
Arrow, will also form another joint venture with another Japanese
company in the next couple of weeks.
"The MOU agreement for the joint venture has been signed but
the Japanese firm is still reluctant to publicly announce the
deal," he said, adding that the planned joint venture will
establish a sock factory with a total investment of around $10
million.
Great River, which is listed on the Jakarta and Surabaya stock
exchanges, booked a sale turnover of around Rp 67.47 billion
(US$32.12 million) during the first six months of this year and
registered a net profit of around Rp 5.5 billion in the same
period.
Minoru said Toyoba would soon establish another joint venture
with PT Adetex to take advantage of the growing business
opportunities in Indonesia.
He said that the planned joint venture, Toyobo Export
Indonesia, will operate in general trading activities.
(hen)