Sonoco plans to boost RI operation

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)