Teijin sets up RI venture

Teijin sets up RI venture

TOKYO (AFP): Japanese textile manufacturers Teijin Ltd. and Nisshinbo Industries Inc. said yesterday they would set up a textile dyeing venture in Indonesia in January next year.

PT Gistex Nisshinbo Indonesia will be capitalized at $10 million, with plans to set up a dye works in Bandung on the main island of Java at a cost of $15 million, the two Osaka-based companies said in a statement.

The venture will be controlled 60 percent by Nisshinbo, 30 percent by PT Gistex of Indonesia and the remaining 10 percent by Teijin, Japan's largest polyester manufacturer.

Under the plan, cotton textiles produced at Nisshinbo's other Asian factories and polyester fiber made by Teijin will be processed and dyed at the plant, where 250 people will be hired.

The venture plans to start operations in October next year with monthly capacity to dye 2.5 million meters (8.25 million feet) of fabric, targeting sales at three billion yen ($23.8 million) a year by 2000.