Feb 11, 2011

Indo Kordsa lends Rp164 bio loan to unit

PT Indo Kordsa Tbk ready to provide US$18.5 investment fund or around Rp164.65 billion to boost the production capacity of its subsidiary namely PT Indo Kordsa Polyester.
Corporate Secretary of Indo Kordsa Andreas Lesmana said board commissioners and directors have approved the increase of production capacity for second phase.
“The total investment to jack up capacity is US$18.5 million. Down payment for purchase of machinery amounted to US$1.92 million conducted at the latest on March 10, 2011," he said in the disclosure of information, today.
Purchasing transaction of machinery, he added, was signed on February 10, 2011. The purchase will boost the installed production capacity of 12,000 tons per annum so that the product capacity will increase to 26,000 tons per annum.
The whole process of transaction will takes 12-18 months from the advance payment. “The transaction has no material impact because its value is less than 20% of the equity," said Andrew.
Indo Kordsa Polyester engaged in artificial fibers industry with 99.9% shares owned by Indo Kordsa from the total shares issued and fully paid. Meanwhile, 0.07% owned by Kordsa Global A.S, a company established in Turkey.
The rest of 0.03% owned by Remington Gold Limited, a corporation established under the laws of British Virgin Island.

Disclosure: No position at the stock mentioned above.  

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