Three Japanese firms acquired 32.44 percent local wood producer, PT Indonesia Fibreboard Industry Tbk (IDX: IFII) - Photo by the Company

JAKARTA (TheInsiderStories) – Three Japanese firms acquired 32.44 percent local wood producer, PT Indonesia Fibreboard Industry Tbk (IDX: IFII), said the company today (01/23). The companies are SMB Kenzai Co., Ltd., Noda Corporation, and Ishinomaki Plywood Manufacturing Co., Ltd., engaged on wood processing.

Based on the official statement, its holding, PT Adrindo Intiperkasa sold 1.79 billion shares and the president director, Heffy Hartono, sold 1.05 billion shares with an average selling price Rp185 a share. The two shareholders raised Rp525.4 billion (US$37.53 million) from the share sales.

After the transaction, Adrindo’ ownerships lowered to 51 percent from primarily at 70.12 percent. While, Hartono’ shares has been reduce from 12.75 percent to 1.56 percent.

Last December, Indonesia Fibreboard just list its shares at the Indonesia Stock Exchange. The plywood company released 1.42 billion shares and obtained fresh funds Rp148.27 billion.

With the new capital, Hartono, optimism could boost the company sales to Rp800 billion from last year Rp650 billion and net profit from Rp72 billion to Rp110 billion in this year. To reach the target, the producer preparing capital expenditure Rp40 billion to buy new engines.

At present, Indonesia Fibreboard production capacity is 250,000 cubic meters per annum. With the new engine its expecting will provide an additional capacity of around 25,000 cubic meters every year.

“In the future, the timber business is quite promising because growth in Indonesia and the world is around 4 percent per year,” said Hartono.

Indonesia Fibreboard Industry has main business activities in the field of medium density fiber board and other processed wood products. The company is targeting the export market as the main market. Currently, around 75.82 percent of its production go to global market.

50.88 percent of the company’ products absorbed by Japanese companies, followed by the Middle East at 17.53 percent and other countries 7.41 percent. The domestic market contributed 24.18 percent to its sales.

“We still have a lot of potential to develop Japanese market because Indonesian portion only seven percent of the Japanese market. The biggest is from New Zealand,” he concluded.

US$1: Rp14,000

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