Toray expands RI factory

Toray expands RI factory

TOKYO (Dow Jones): Japan's Toray Industries Inc.(J.TOR or 3402), a top maker of synthetic fibers, said Thursday it will invest Y2.4 billion to increase production capacity at its Indonesian spinning subsidiary.

Toray said it will increase the number of spindles at P.T. Easterntex in East Java to 97,000 by November 2000 from 65,000 at present.

P.T. Easterntex will finance the expansion project with its own funds and a loan. A Toray spokesman couldn't comment on the details of the loan.

The additional capacity at ETX will make up for lost capacity at Toray's subsidiary in Malaysia, Pentex Sdn. Berhad, whose facilities burned down in an accidental fire in June 1997.

ETX supplies polyester and cotton blended yarn products mainly to weaving plants of the Toray group located in southeast Asia.