Tifico plans a rights issue for expansion

Tifico plans a rights issue for expansion

JAKARTA (JP): PT Teijin Fiber Corporation (Tifico) plans to
make a rights issue in the near future to finance its US$90
million expansion plan, an executive of the company, Mardjono
Reksodiputro, said yesterday.

Mardjono told the company's annual shareholders meeting here
that the plan is crucial for the company and in urgent need of
shareholder approval.

Tifico, which produces polyester filament yarn and rayon
staple fiber, suffered supply shortages of raw materials in the
few years prior to 1993 due to the increased market prices for
purified terephthalic acid and ethylene glycol.

But for the year ended on June 30, 1995, the company reported
Rp 18.06 billion ($7.88 million) in net income, compared to a net
loss of Rp 11 billion the previous year.

The shareholders agreed that 30 percent of the income will be
paid out as final dividends at Rp 150 per share for the 1994-1995
year, which ended on June 30.

Tifico's president Kikuo Hori said that the dramatic
turnaround from loss to profit was caused by the increase in net
sales to Rp 389.97 billion.

"The sales volume and value grew over the previous year by 25
percent and 67 percent respectively, in spite of a continuing
increase in the worldwide prices of raw materials," said Kikuo.

Kikuo also remarked that following the difficult year of 1993,
the company began in August 1994 to diversify its products into
partially-oriented yarn and compound-textured yarn with a daily
capacity of 16 tons and four tons respectively.

Tifico's polyester filament yarn production in 1994-1995 ran
at approximately 175 tons per day and rayon staple fiber at 110
tons per day. (08)