INOV - PT. Inocycle Technology Group Tbk

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JAKARTA – PT Inocycle Technology Group Tbk (INOV) projects the commercial operation of the reycled polyster staple fiber (RePSF) production facility in Medan, North Sumatra to begin in the first quarter of 2023.

Victor Choi, Director of INOV, mentioned that the production of this RePSF factory in Medan will cover 23% of the total production capacity of 40,000 tons per year. “The company has allocated USD 6 million for its capital expenditure this year to establish recycling centres and washing facilities in minor and mid-range cities,” he explained his plan in the press release quoted Wednesday (7/12).

INOV now manages five existing factories, consisting of three RePSF factories in Tangerang, Karanganyar, and Mojokerto, each of which boasts a total production capacity of 14,400 tons per year. Then, it also manages two factories of non-woven (NW) and homeware (HW) production in Salatiga and Palembang, each recording a production capacity of 2,000 tons per year. The utilisation rate of these factories still arrives at 90%.

In the future, there will be three NW and HW production facilities built in Medan, North Sumatra, as well as in Gowa and Takalar, South Sulawesi. Each will have an NW capacity of 1,300 tons per year as well as HW and NW capacity of 600 tons per year. Furthermore, they will also have a washing capacity of 3,600 tons per year and 1,080 tons per year.

As of September 2022, INOV reported 15% year-on-year (yoy) growth, bringing the revenue from IDR 464.64 billion to IDR 533.99 billion. However, the volatility of currency exchange rate, increased prices of commodities, and the swell of costs of sales curbed its profit significantly, resulting in a loss of IDR 8.79 billion from IDR 25.69 billion of profit seen in the same period last year. (LK/ZH)