PT Pindo Deli plans to go public next year

JAKARTA (JP): Indonesia's third largest paper manufacturer PT Pindo Deli Pulp & Paper Mills announced on Friday that it was making preparations to float its shares on the stock market next year, according to company vice president Ali Alimsyah.

"We aren't sure yet, but in terms of preparations we're moving toward that direction," he told reporters on Friday at a press conference announcing the environmental management ISO 14001 certification the company had just received.

Pindo Deli is more than 90 percent owned by the giant Sinar Mas Group, which controls Indonesia's largest pulp and paper industry through its two publicly listed companies PT Indah Kiat Pulp & Paper and PT Tjiwi Kimia.

Unlike its two other sister companies, Pindo Deli produces a range of value-added paper products including art paper, coast coated paper, coast coated board, woodfree, computer stationary, photocopy paper, carbonless paper, corrugated board and tissue.

Pindo Deli has a production capacity of 700,000 tons per year and it exports 90 percent of its products to more than 30 countries in Europe, the U.S. and Asia.

Last year, the company booked consolidated net sales of US$534.3 million.

"We expect net sales to grow by between 15 and 20 percent this year," Ali said.

"With the price trend going up, the figure will be even better next year," he added.

Ali said that the ISO 14001 certification was given to the company after SGS International conducted an environmental audit and concluded that all of Pindo Deli's environmental management controls had met international standards.

He said that the ISO 14001 certification was important for a paper company like Pindo Deli which exported its products to developed countries in Europe and the U.S.

The Pindo Deli plant, located in Karawang, West Java, uses state of the art technology, including in its $7 million waste water treatment facility, imported from Finland.

Ali said that by using the latest technology, the company could ensure efficiency and the ability to compete overseas in terms of quality and price.

He said that although the price for the new technology was expensive, but the company would benefit from the still relatively low paper consumption in Asia. (rei)