Teijin to add $50m to RI investments

Japan's second largest textile producer Teijin Ltd. plans to increase investment by US$50 million, compared to its current investment of $450 million, in Indonesia over the next three years to expand its plant's capacity and improve operating efficiency.

The company's president and chief executive officer, Toru Nagashima, said the investment would involve the building of a 30- megawatt coal-fired power plant in Tangerang, Banten, and the modification of its production machinery to boost efficiency.

"We are striving to make the Indonesian textile and garment industry more competitive and developed," he told the press after meeting President Susilo Bambang Yudhoyono at the Presidential Palace on Friday.

Of the $50 million new investment, the company has spent $25 million thus far, partly on the power plant project. The project is scheduled for completion in December of this year.

Teijin's Indonesian unit, publicly listed PT Teijin Indonesia Fiber Corp. (Tifico), produces 650 tons of polyester chips, 200 tons of filament yarn and 350 tons of staple fiber per day.

Aside from Tifico, Teijin also has three other local units. In total, the company employs some 1,500 workers.

According to the Indonesian Chamber of Commerce and Industry (Kadin), aging machinery -- exacerbated by the banking sector's reluctance to give financial backing -- has become a major problem facing the local textile industry.

Despite its image, textiles and clothing remain the country's top export commodities. -- JP