PT Sliontec to set up adhesive tape plant

JAKARTA (JP): PT Sliontec Ekadharma Indonesia will spend Rp 33.32 billion (US$14 million) setting up a tape adhesive plant in MM 2100 industrial estate in Cibitung, West Java, in May.

PT Sliontec Ekadharma Indonesia is a joint venture owned by Japan's Sliontec Corporation (51 percent), PT Ekadharma Tape Industries (26 percent), Otoyo Shokufu Co. Ltd (20 percent) and Japan's Orion Trading Co. Ltd (3 percent).

Sliontech Corporation is a tape adhesive maker based in Kawasaki, Japan. PT Ekadharma tape Industries is a tape adhesive maker based in Tangerang, West Java. Otoyo Shokufu Co. Ltd is a woven fabric maker while, Orion Trading Co. Ltd is a trading company.

The president of Ekadharma Tape Industries, Judi Leonardi, said yesterday the company would provide $7 million from its own equity and the other 50 percent would come from loans arranged by Japanese banks.

He did not say which banks.

The president of Sliontec Corporation, Todayashi Kojima, said work on the plant would start in May and be completed in May 1998.

The plant will make adhesive tape for the automotive, packaging and construction sectors.

Judi did not say what the plant's production capacity would be but said the company expected its net sales to reach US$12 million in the plant's first year of production although the plant would only operate at 60 percent capacity during the first year.

The company will market its products overseas including to Taiwan, China and ASEAN. (09)