Mayertex to boost production
Mayertex to boost production
JAKARTA (JP): PT Mayer Textile Industry Indonesia, a textile
producer listed on the Jakarta and Surabaya stock exchanges, will
procure new machines and seek technical cooperation with foreign
companies to improve its production capacity and product quality.
Mayertex's chief commissioner, Irwan Suria, told reporters
after its annual shareholders meeting here yesterday that the
capacity improvement is necessary to support its plan to expand
marketing in China.
"We have opened a new distribution line in China," Irwan said,
adding that the company is interested in China because it has an
open market with a very huge demand, while its traditional
markets in the European countries and the United States are
limited by quota systems.
He said declines in demand on the world market affected the
profitability of the company, which is export oriented. The
company's after tax profit dropped to Rp 162.21 million
(US$75,028.98) last year from Rp 1.69 billion in 1992.
Its net revenue dropped to Rp 47.23 billion from Rp 70.78
billion, while its total assets increased to Rp 64.91 billion
from Rp 53.72 billion.
Irwan said the company's revenue from garment exports last
year dropped to Rp 26.69 billion from Rp 38.74 billion in 1992,
and revenue from textile exports to Rp 14.61 billion from Rp
24.94 billion.
Chairman of the Indonesian Textile Association (API), Handoko
Tjokrosaputro, said recently that Indonesia's exports of textiles
and textile products started falling in the fourth quarter of
last year and will likely continue declining in the coming months
due to decreased competitiveness of its products and weaker
demand in industrial countries.
Data from the Ministry of Trade show that Indonesia's exports
of fabrics, yarns and other textile materials increased by 20
percent in volume to 441,240 tons last year from 367,560 tons in
1992, but the 22.5 percent decline in prices caused the export
value to decrease by seven percent to US$2.63 billion from $2.83
billion.
Exports of garments rose 17.8 percent to 227,690 tons from
193,210 tons but the 6.1 percent decline in prices caused their
value to increase only by 10.6 percent to $3.5 billion from $3.16
billion. (02)