ARNA - PT. Arwana Citramulia Tbk

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JAKARTA - PT Arwana Citramulia Tbk (ARNA) sets out to intitiate the construction of its sixth ceramic manufacturing plant (Plant 6) in West Java in the second half of 2024. This new plant will be designed to handle the competition in the upper class segment, which has started to welcome importers from China.

Tandean Rustandy, Chief Excutive Officer (CEO) of Arwana Citramulia, mentioned that Plant 6 will be located in the central area of West Java. "We need a plant in the centre to cut off transportation costs and reduce car emission. It will be closer, and we look for unoccupied areas," he explained in an interview with IDNFinancials in Jakarta today (15/11). 

This latest location is projected to be an industrial zone, equipped with a school and kindergarten. The ceramic production from Plant 6 will be targeting high-end market, thus allowing ARNA to compete with imported ceramic from China. 

As of 2022, ARNA's ceramic production reached 70.63 million m2, equal to 110% utilisation of installed capacity of its plant of 64.37 million m2. As of now, the issuer operates 15 factories in Plant 1 to 5. Plant 5C will operate at the second half of 2023, projecting a production capacity of 15.4 million m2/year.

Until September 2023, ARNA's profit clocked up to IDR 355.92 billion, slowing down from IDR 463.01 billion seen in the same period in 2022. Its sales also slipped to IDR 1.84 trillion from IDR 2 trillion.

The contribution of manufacturing industry was reported at IDR 1.78 trillion, followed by the distribution segment of IDR 1.76 trillion, with an elimination of IDR 1.71 trillion. In the same period in 2022, the manufacturing industry generated sales of IDR 1.92 trillion, while distribution segment brought in IDR 1.90 trillion, with an elimination of IDR 1.82 trillion. (LK/ZH)