JAKARTA - PT. Fajar Surya Wisesa Tbk (FASW) acquired a paper factory in Surabaya, East Java to increase the company’s production. The factory was acquired for Rp 110.10 billion, and the fund drawn from internal cash and bank loan.
Marco Hardy, Corporate Secretary of PT Fajar Surya Wisesa Tbk (FASW) stated that the acquired factory will contribute about 300,000 ton or 30% of the total annual paper production. “Our current capacity is 1.3 million tons,” said he, in Jakarta.
According to Hardy, after the acquisition, the production capacity will reach 1.6 million tons in 2019. The acquired assets were land, building and parking area, gas turbine, and equipment.
Fajar Surya opted to acquire an existing factory since it is more efficient and faster rather than to build a new one. “Usually it takes 2 years to build a new factory, but if we acquire a factory, we only need to take the land and the machinery,” he said. (LK/AR/W)