JAKARTA - PT Fajar Surya Wisesa Tbk (FASW) targets sales growth in 2019 within the range of 15% - 20% after the company acquired a new factory in East Java. The acquisition process is expected to be completed by the end of this year.
"Our sales growth expectation is to increase by 15% to 20%. This is supported by the new capacity that comes from the acquisition of new factory in East Java," explained Marco Hardy, Corporate Secretary of Fajar Paper during the public expose.
About 30% of the production from the new factory will be supplied to the East Java region and around 50%-70% will be produced for export. While production in the West Java and Jabodetabek areas will be focused on the region as well as additional capacity for exports.
For information, Fajar Paper needs US$ 60 million to acquire the new factory. About 80% of the funding needs for the acquisition come from syndicated bank loans. In addition, the company also requires an additional funding of US$ 30 million to repair and modify the machines.
The new factory in East Java will increase Fajar Paper's production capacity of 300,000 tons to 1.6 million tons or 20% higher than the existing capacity. In 2020, East Java's factory production capacity will be increased to 600,000 tons per year. (LM)