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Alkindo Naratama increases production capacity of new business

08 February 2019 07:12 AM  Company: PT. Alkindo Naratama Tbk[ALDO]
Rp. 300  +4 (1.35%)

JAKARTA - PT Alkindo Naratama Tbk. will add a new business segments, namely the paper segment, after acquiring PT Eco Paper Indonesia (EPI).

Based on IDX's information disclosure quoted on Thursday (02/07/2019), Corporate Secretary Alkindo Naratama Kuswara explained, the company has a new business segment, namely the paper segment after acquiring EPI. Thus, the company will have 4 consolidated segments, namely the conversion paper, paper, chemical and polymer segments.

The chemical segment is a business segment of the subsidiary PT Swisstex Naratama Indonesia (SNI). Meanwhile, the polymer segment is a business segment of another subsidiary, PT Alfa Polimer Indonesia (API).

Kuswara said, a consolidated addition from EPI would contribute to sales, which are targeted to grow 15% this year. In addition, the projected profit still grows in double digits.

"2018 profit is still an audit. Our projection [profit] can get a double in 2019," he said on Thursday (02/07/2019).

ALDO prepared a number of plans to add capacity after acquiring EPI. Kuswara said that the company allocated capital expenditure of around Rp 25 billion-Rp 35 billion to increase production capacity in existing business lines and new business lines this year.

From the capital expenditure, around Rp 15 billion - Rp 20 billion is allocated for EPI. Capital expenditure for the purchase of machinery can increase production capacity from 60,000 tons to 65,000 tons per year. In the long term, the company also plans to install a second engine for EPI. (AM/LM)

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PT. Alkindo Naratama Tbk [ALDO]   Rp. 300   +4 (1.35%)