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INOV gains windfall from sales of geotextiles to Qatar

06 December 2021 19:41

JAKARTA - PT Inocycle Technology Group Tbk ("INOV"), a listed company in the business of recycling plastic (PET) bottle waste into Recycled Polyester Staple Fiber (Re-PSF), recorded a positive performance until the third quarter of 2021 one of which was driven by an increase in in sale to a Related Party. INOV recorded an increase of sales to a Related Party of 62.5% YoY as of September 2021. This indicated improvements for business operations within the INOV group ecosystem. Demand for Recycled Polyester Staple Fiber (RePSF) products from the parent company, namely PT Hilon Indonesia, was recorded at IDR126.0 billion or 27,1% of INOV's total sales as of September 2021. 

The increase in fiber demand from Hilon is in line with its involvement in infrastructure projects from Qatar for geotextile products. Geotextile is a derivative of INOV's non-woven product in the form of a sheet that functions to protect, filter, strengthen and also prevent the mixing of material layers with one another in infrastructure construction processes. Said product has been tested for quality and has obtained KAN (National Accreditation Committee) certification and international standards.

Victor Choi, as Director of INOV said, “The global pandemic and the increase in shipping costs and the scarcity of containers have limited our opportunities to develop the export market. However, we are grateful that currently, through our parent company, PT Hilon Indonesia, we are involved in the infrastructure project being carried out by Qatar, with Hilon exporting around 450 tonnes of exporting non-woven geotextile products to meet their needs. This non-woven geotextile product can be applied in various industries, such as infrastructure. This demand from Qatar in turn encourages an increase in Recycled Polyester Staple Fiber (RePSF) demand from Hilon to INOV."

Meanwhile, until the third quarter of 2021, INOV recorded sales of IDR464.6 billion, or an increase of 22.8% from the same period in the previous year. Meanwhile, INOV sales as of September 2021 were dominated by the domestic market reaching 89,3% or IDR414.8 billion, while export sales amounted to IDR49,8 billion. The improvement in INOV's performance in the third quarter of 2021 was also driven by the increasing trend of using recycled products, which is in line with the commitment to implementing a circular economy in Indonesia. (LM)

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