Sonoco plans to boost RI operation

JAKARTA (JP): Sonoco, a major U.S. producer of packaging materials, plans to further expand its operations in Indonesia following last year's move to take over a local packaging company.

Managing director of Sonoco Asia, Perry D. Smith, said here yesterday the American packaging company would build new production facilities as part of the expansion program.

Smith said Indonesia was a potential market and had numerous raw materials to support production.

Founded in 1899, Sonoco is one of the world's largest manufacturers of packaging materials for industrial and consumer markets.

It supplies 56 percent of its products for industrial packaging and 44 percent for consumer packaging for many of the world's largest companies and brand owners.

The company is the world's leading composite can producer, used to wrap various products and brands in Indonesia, including "Hottest" snack products and "Mesran Super" lubricant of state- owned oil company Pertamina.

Last year, the company acquired PT Tritunggal Sejahtera, a local producer of composite cans for snack food and motor oil through its Asian arm, Sonoco Asia.

Starting Tuesday, the registered name of the Indonesian company will be PT Sonoco.

"Since the acquisition last year, Sonoco has invested over US$10 million in developing the company's operations and high technology in Indonesia," Smith said.

He added the company planned to build a paper mill and other plants in Indonesia in the next few years.

Sonoco's executive board chairman, Charles W. Coker, said Indonesia was a fast growing market.

"We want to have plants here so that manufacturers are close to the consumer," he said.

Sonoco booked consolidated net sales of US$2.8 billion last year, a 3 percent increase from $2.71 billion in 1995. (08)