PT Indorama to produce woolen yarns
PT Indorama to produce woolen yarns
JAKARTA (JP): Publicly listed PT Indorama Synthetics -- a
polyester producer -- through its wholly-owned subsidiary PT
Indorama Teknologies, set up a plant to manufacture woolen and
blended yarns in Purwakarta, West Java, yesterday.
The company's senior finance manager and corporate secretary
V.S. Baldwa said the plant would cost about Rp 532 billion
(US$161 million) and employ 2,200 workers.
The plant was expected to commence commercial operations in
the second half of 1998, he said.
He said the plant would produce high quality products meeting
the standards of the global market.
Indorama, Indonesia's largest polyester producer, plans to
export 80 percent of the new plant's output, which was expected
to be US$115 million per year after full completion.
The company, which was founded in 1974, will be the first
company in Indonesia to obtain the "Wool Rich Blend" trademark
license from the International Wool Secretariat, which it plans
to obtain for the new plant, according to Baldwa.
Yesterday's groundbreaking ceremony was led by State Minister
of Investment Sanyoto Sastrowardoyo at the new 50-hectare
Indorama complex in Purwakarta.
Sanyoto said interest in investment in Indonesia was still
high despite the currency crisis.
"The current monetary crisis has not affected the interest of
both local and foreign investors to invest their money in
Indonesia," he said.
He said investors were undaunted because investments were
long-term and they believed the currency crisis was temporary.
He said the government had approved over 10,000 domestic
investment projects worth Rp 579.9 trillion and over 5,400
foreign projects worth $198.7 billion.
"Although our national economy is being hit by a currency
crisis this year, new domestic investment approved this year
amounted to Rp 105.4 trillion and foreign investment $29.1
billion.
Baldwa said Indorama planned to bring global success to
Indonesia by setting up the first company in Indonesia to
manufacture blended wool-polyester yarns and other blends of
wool.
He said the Indorama Group was the world's second largest
producer of Worsted Woolen Yarns, popularly known by the
"Uniworth" trademark, with manufacturing facilities spread across
India, Thailand and the United Kingdom.
The group is fully integrated, from wool fibers to woolen
suits and garments, with major exports to Japan, the United
States, Canada and Western Europe.
He added the company planned to invest about $400 million into
polyester textile production by 2000, which it claims is a
reflection of its commitment to the Indonesian economy. (08)