JAKARTA. PT Indonesia Fibreboard Industry Tbk (IFII), a company within the wood industry, announces its plan to extend the Medium Density Fibreboard (MDF) factory. The investment would take up IDR 650 billion, financially aided using bank loans.
Thomas Verdiyanto, the Director and Corporate Secretary of IFII, discloses that the expansion would take place on the company’s factory in South Sumatra. In the information disclosure in Indonesia Stock Exchange (IDX) earlier today (25/6), Verdiyanto admits that this plan has to wait for approval during the General Shareholders Meeting to be held by the end of this month. It is due to the fact that the value of the upcoming investment is categorised as a material transaction.
By extending its factory, IFII would increase its MDF production capacity to 450,000 m3/year. Previously, MDF could only handle 250,000 m3/year.
IFII intends to fill 70%, or IDR 455 billion, of the expansion needs through the investment credit facility from banks. The remaining 30% would use the company’s cash and debt balance.
As of December 31, 2020, 51% of IFII is controlled by PT Adrindo Inti Perkasa. Then, SMB Kenzai Co Ltd owns 25%, Heffy Hartono 5.98%, and the remaining 18.02% is dispersed among the public investors. (KR/ZH)