Polysindo to issue rights to finance its expansion

Polysindo to issue rights to finance its expansion

JAKARTA (JP): Indonesia's major polyester manufacturer PT
Polysindo Eka Perkasa will issue 99-for-100 rights in a bid to
raise Rp 1.09 trillion.

Publicly listed Polysindo announced yesterday it planned to
use Rp 993 billion of the proceeds to finance part of its US$800
million expansion program and the balance to strengthen its
working capital.

Polysindo began its expansion program earlier this year to
increase downstream production of yarn and fabrics and add
incremental purified terepthalic acid (PTA) and polymer required
to support these operations.

"This expansion is our strategy to increase our margin and
value-added product lines such as specialized yarn and fabrics,
polyester fleece and coated active wear," said R. Gururajan, a
director of Polysindo.

Upon completion of the expansion project, Polysindo's
capacities will be 253 million yards of fabric a year, 210,000
tons of filament yarn, 187,000 tons of staple fiber, 503,000 tons
of polymer chips and 500,000 tons of PTA.

Polysindo's director of Investor Relations, Anastasia
Vrachnos, noted:" We are adding high-end, value-added products to
our portfolio, including polyester fleece and coated activewear
in a tie-up with Helly-Hansen, Europe's leading brand name for
high performance sportswear."

The export-oriented products, which will be coming on stream
in the first quarter of next year, will help Polysindo achieve
its target of at least $100 million in direct exports by the end
of 1998, Vrachnos added.

She said the rights issue would also increase the liquidity of
Polysindo's stock, strengthen its balance sheet and provide
investors with an opportunity to participate in its future growth
on attractive terms.

Polysindo's shares closed at Rp 1,400 on the Jakarta Stock
Exchange yesterday. (vin)