Timor signs deal on the supply of spare parts
JAKARTA (JP): The publicly-listed PT Selamat Sempurna has secured an alliance with Samah Precision Co, Ltd and Daeki Industrial Co.,Ltd of South Korea to supply the national car producer Timor Putera with filters and fuel tanks, a company director said yesterday.
"We signed an agreement on the technical cooperation and product license with the two Korean companies recently. And now we're ready to supply Timor," the company's finance and administration director Johansyah Anwar said after a yearly meeting of shareholders here yesterday.
He said the auto components which would be supplied to Timor Putra, the producer of the so called national car, would be made in the existing manufacturing units.
He said that PT Selamat Sempurna, a major autoparts manufacturer in Indonesia, would only need to make some changes and buy new machines to produce Timor parts.
PT Selamat Sempurna, which is a subsidiary of the Auto Diesel Radiators (ADR) Group owned by Eddy Hartono, has an installed capacity of 16 million units of filters, 350,000 units of radiators, and 80,000 units of exhaust systems a year.
"Although our autoparts supply to Timor would not contribute much to our sales as it is still a new project, we see it as a promising deal," he said.
In a joint venture with Kia Motors, PT Timor is allowed to import the cars from South Korea until its own factory becomes operational in 1998.
Handi Hidajat, the marketing director of the company, said that the company, which also produces brake and fuel pipe, fuel tank, car air condition and press parts, had also secured a contract from Bakrie car to supply radiators, filters and exhaust systems.
The Bakrie Group will start producing 10,000 units of Bakrie cars next year.
He said that his company had already supplied Hyundai and Bimantara with filters and fuel tanks.
"Now we're negotiating a contract to supply a number of autoparts with Maleo, another national car project," he said.
Profit
Johansyah said that PT Selamat Sempurna, which won an ISO 9002 certificate for its quality management system from SGS Yarsley International Certification System Ltd in January, posted a net profit of Rp 18 billion (US$7.7 million) last year, an increase of 14.4 percent over the previous year.
Its total sales last year increased by 24 percent to Rp 126.5 billion, which consisted of 56.9 percent domestic sales and 43.1 percent exports.
He said that the company's shareholders had agreed to pay a dividend of Rp 64 per share. The total dividends will reach Rp 7.3 billion or 40 percent of the total net profit last year.
With the increasing growth of the Asian, European and American automobile industry, Selamat Sempurna expects to see a growth of more than 20 percent this year.
"We aim to reach a total sale of Rp 152 billion and a net profit of Rp 22.3 billion this year," said Johansyah.
He said that his company targeted to increase its export contribution to its total sales to 45 percent this year.
The company exports autoparts -- mostly radiators, filters and exhaust systems -- to the United States, Canada, Belgium, Germany Italy, Britain, Netherlands, Japan, Malaysia, China, Singapore, Taiwan, Thailand, Australia, New Zealand, a number of other Asian, African, and Arabic countries. (bnt)