Voksel to start producing optical fiber

JAKARTA (JP): Cable producer PT Voksel Electric will begin operating its optical fiber plant later this year with an annual capacity of 100,000 core kilometers.

Total investment for the expansion is about US$30 million, corporate secretary Hendru Widjaja said here yesterday.

"Most of the optical fiber will be sold on the domestic market," he said following an annual shareholders meeting. "And we'll use some in constructing a telecommunication network in western Surabaya and Madura island."

Voksel will lead a consortium, already approved by the state- owned PT Telkom, in developing the telecommunication network.

He reported his company would set up a cable plant in Vietnam but did not provide further details.

Shareholders approved the management's proposal to cut the nominal value of the company's stocks from Rp 1,000 to Rp 500 per share. The split will double the company's shares to 126 million.

They also approved a dividend of Rp 66 per share.

The firm posted a net profit of Rp 10.1 billion last year, a 12.3 percent increase over the previous year.

Total sales were Rp 226.8 billion, up 3.75 percent from Rp 218.6 billion in 1995.

The company's electrical cable sales dropped 50.2 percent to Rp 64.1 billion last year, but telephone cable sales jumped 95.3 percent to Rp 152 billion.

Electrical and telephone cables are the main products of PT Voksel but it also produces enameled wires and aluminum wire rod.

Hendru said strong growth was forecast this year on the back of expected increases in sales of electrical cables.

Cable exports were also predicted to increase this year. "Last month we signed an agreement with the United Arab Emirates to export our cables to that country," Hendru said. (bnt)