JAKARTA - Paper issuer PT Fajar Surya Wisesa Tbk (FAWS) known as Fajar Paper has allocated US$ 60 million to acquire a factory in Driyorejo, East Java.
The new factory will be used to serve domestic needs in East Java region and around 50%-70% of the production will be exported. For information, 30% of Fajar Paper's total sales are export sales dominated by China. Besides China, Fajar Paper also exports products to more than 20 other countries.
"The total acquisition is around US$ 60 million, of which around 80% of it is obtained from syndicated bank loans," explained Marco Hardy, Corporate Secretary of Fajar Paper during the public expose.
Next year, the factory in East Java will increase the production capacity of Fajar Paper between 280,000 tons to 300,000 tons per year. Thus, the total production capacity of Fajar Paper will grow by around 20% to 1.6 million tons per year in 2019 from the previous 1.3 million tons per year.
The company remains optimistic that next year will be as stable as this year and predicts the additional production capacity can drive sales growth by 20%. (LM)