INKP - PT. Indah Kiat Pulp & Paper Tbk

Rp 8.675

-75 (-1,00%)

JAKARTA. PT Indah Kiat Pulp & Paper Tbk (INKP), a pulp and paper company under Sinarmas Group, plans to distribute a new production plant to meet ever-increasing demand for papers.

Heri Santoso, Corporate Secretary of INKP, claimed that the company will set up USD 3.63 billion for establishing a new production facility and its supporting infrastructures. This new plant is projected to be erected in Karawang, West Java.

The construction of this upcoming new facility of INKP will be categorised as a material transaction, because its value is equal to 64.81% of INKP’s total equity in December 2022. Therefore, the management must gain approval from its shareholders in a meeting scheduled on May 16, 2023.

Santoso said that the demand for the industrial paper from INKP’s production, be it from the domestic or export market, continues to rise each year. With the limitation of the production capacity, the company feels the need to enhance its utilisation level to 95%.

“Then, in order to anticipate the increasing demands for our products in the future, particularly industrial papers, the company intends to raise the production capacity,” Santoso said in the official disclosure.

This new production facility in Karawang is projected to have a capacity of 3.9 million tons per annum, 3 million of which will be used for the production of industrial white paper, leaving the remaining 900 thousand for industrial brown paper. (KR/ZH)