Summitplast plans to float shares on local stock mart

JAKARTA (JP): PT Summitplast Interbenua, a plastic components manufacturer, plans to float its shares on the local stock market in a bid to raise fresh funds to back up its expansion program.

The company said here over the weekend that proceeds from the initial public offering would be used to finance the construction new production facilities.

Amid growing Internet applications in the country, the company would further increase its production capacity to capture a surge in electronic and computer demands.

"We are planning to advance the mold-making facility, to provide a value added on our products that will beat the competitive market", the company stated.

The company said that it planned to invest between Rp 90 billion and Rp 100 billion within the next two years for the expansion program.

Summitplast, which is jointly owned by Sumitomo Corporation of Japan, publicly listed Dynaplast and PT Panca Teladan, operates two factories in Tangerang and Cikarang, West Java, with a combined production capacity of 28,000 metric tons a year.

Summitplast exports most of its products to electronic home appliance manufacturers as well as to automotive companies.

The company also plans to start its business-to-business e- commerce service next year, to facilitate its customers in purchasing their products electronically and efficiently.(07)