Teijin expands fiber production capacity

Teijin expands fiber production capacity

JAKARTA (JP): Publicly-listed PT Teijin Indonesia Fiber
Corporation (Tifico) began on Wednesday a US$20 million project
to expand its polyester staple fiber plant.

When completed in 2002, Tifico's capacity will rise to 355
tons a day from 235 tons at present, the company said during a
groundbreaking ceremony witnessed by Coordinating Minister for
the Economy Rizal Ramli at the plant in Tangerang and Japanese
Ambassador to Indonesia Takao Kawakami.

Tifico, established 25 years ago, is now 93 percent owned by
the Japanese-based Teijin Ltd, one of the world's largest textile
companies. Besides polyester staple fiber, the company also
produces polyester filament yarns at a rate of 210 tons a day.

Rizal in his address hailed Teijin's decision to expand in
defiance of the gloomy outlook for foreign investment often
portrayed by the media.

"Tifico has proven (such opinions) wrong," he said, adding
that the expansion project was a symbol of Tifico's continued
trust in the Indonesian economy.

Shosaku Yasui, president and chief executive officer of Teijin
Ltd, said that in spite of the political instability, the
company's 25 years of experience in Indonesia had given it the
confidence needed to continue its operation in the country.

"We will not stop, and we continue to believe in the future
development of Indonesia," he said, pointing to the fact that 75
percent of Tifico's output is exported.

Tifico, founded in 1973 as a joint venture involving Teijin
Ltd, went public by listing at the Jakarta Stock Exchange in
1979. In October, Teijin injected an additional $40 million to
increase its stake in the Indonesian company. (03)