PT Indorama Synthetics Tbk (IDX: INDR), ground the new factory located in Purwakarta, West Java, with total investment value Rp510 billion (US$35.17 million) - Photo by the Company

JAKARTA (TheInsiderStories) – Textile producer, PT Indorama Synthetics Tbk (IDX: INDR), expanding their factory located in Purwakarta, West Java, with total investment Rp510 billion (US$35.17 million), said the management yesterday. The new plant to produces yarn from cotton, polyester, nylon, acrylic, spandex, rayon, and blends.

President Director of the company, Vishnu Swaroop Baldwa, said the polyester spun yarn factory and the polyester plant will start the production in 2021. Together with the existing plants, the new spun polyester yarn factory will have a production capacity of 143,000 tones per year from initially 130,000 tones.

While the new polyester fiber factory will have a capacity of 361,000 tones per annum from earlier 280,000 tones per annum. The two factories will complement Indorama‘ existing factories located in Purwakarta, Campaka and Bandung, Indonesia and in Uzbekistan, Sri Lanka and Turkey.

“We are optimistic that the products from the new factory will be absorbed by the market, because we have a strong market position with diversified customers,” said Baldwa in a statement released on Wednesday (04/07).

Indorama was founded in 1975 and started commercial production in 1976 with a cotton spinning mill in Purwakarta and expanding the spun yarn business and increasing production of polyester manufacturing. The manufacturer is one of the largest exporters in the country to North America, Europe, South America, Asia, Australia and the Middle East.

Currently 34.03 percent of the company shares owned by Indorama Holdings B.V, 25 percent by PT Irama Investama, and 40.97 percent hold by public. Since mid of last year, the company businesses has been hit by the pandemic and have their production in Indonesia, Sri Lanka and Uzbekistan.

Beside facing the risk of lowering income and profits, the company also has laid of their employees. Nevertheless, the pandemic does not stop their expanding planned. With the existing trend, Baldwa said optimistic that the achievement of Indorama would be better than the realization in 2020.

He estimated that export sales will still dominate the company’ sales until the end of the year, because the company still has a strong and diversified customer base in more than 70 export destination countries.

Recently, the textile producery owned by “crazy rich” Sri Prakash Lohia, has expanding the company businesses by completed the acquisition of 80 percent of gold producer, PT Cikondang Kancana Prima with valued of Rp300 billion. The gold miner and processing firm located in Cianjur, West Java.

“This transaction was completed on February 24, 2021,” said Baldwa, in an official statement released on Feb. 26, without giving more information the purposed of the gold mining acquisition.

US$1: Rp14,500

Written by Editorial Staff, Email: theinsiderstories@gmail.com