Tjiwi Kimia to increase paper output immediately

JAKARTA (JP): PT Tjiwi Kimia, a paper and stationary producer listed on the Jakarta and Surabaya stock exchanges, will expand their production capacity by procuring a new paper machine.

The company's financial director, Gunawan Taslim, told reporters after its annual shareholder meeting here yesterday that the company will increase its paper production capacity by 215,000 tons from 394,000 tons per year at present.

Besides paper, the company also has a capacity to produce 150,000 tons of notebooks yearly.

Gunawan said the new machine will cost about US$ 200 million, which will be financed with the funds to be generated from the issuance of bonds on the international market.

"We expect to get about US$200 million from the issuance of bonds on the international market," Gunawan said.

He said the company's management will hold an international road show in the United States, starting Monday, for the promotion of the bonds.

Gunawan said the company's after-tax profit increased by 18 percent to Rp 78.89 billion ($36.47 million) last year from Rp 66.18 billion in 1992, while its sales revenues rose by 25 percent from Rp 492.24 million to Rp 616.21 million.

Gunawan said that out of last year's sales revenues, Rp 326.15 million came domestic sales and Rp 290.06 million from exports.

Suresh said that, last year, the company produced 317,523 tons of paper and 77,088 tons of notebooks.

Gunawan also said the shareholders approved the distribution of a cash dividend of Rp 50 (U.S. two cents) per share in October. (02)