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)