PT Sliontec to set up adhesive tape plant

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)