MAG factory to start production

JAKARTA (JP): PT MAG Indonesia Citra, a wholly-owned subsidiary of MAG Technology Co. Ltd. of Taiwan, said yesterday that it has completed the construction of its Indonesian factory with a production capacity of 100,000 computer monitors a month.

A company director, Soh Sie Teng, said that the firm will hold an opening ceremony for the factory, which is equipped with four production lines, on July 31.

The factory has been established on a 3.6-hectare area at the East Jakarta Industrial Park in Bekasi, West Java.

"Full operation will allow us to be the largest manufacturer of computer monitors in Indonesia," a company executive told The Jakarta Post.

"Almost of all of our products will be allocated for export, with destinations mostly to the United States and European countries," the executive said. "We will also sell a smaller number on the domestic market."

He said the company expects to make approximately US$100 million in revenue this year from the export of about 500,000 monitors.

The executive said that the company invested about $7 million in the plant, $2 million of which was used for land procurement, $3 million for the factory's construction and $2 million for machinery purchases.

He, however, declined to name the figure for the company's working capital.

MAG Indonesia, established in May last year, is the fourth plant of MAG Technology after its two plants in Taiwan and another in China.

In 1995, MAG Technology, with a production capacity of 210,000 monitors per month, grossed $550 million in sales

The United States is MAG's largest market, contributing 51 percent to its gross sales last year, followed by Europe with 34 percent, Japan 8 percent and other countries 7 percent. (alo)