JAKARTA - Textile issuer, PT Asia Pacific Fibers Tbk (POLY), announced the permanent closure of the factory in Karawang, West Java. It is known, POLY has temporarily suspended the operation of the chemical and fiber factory production unit in Karawang as of November 1, 2024.
Quoted from the Indonesian Stock Exchange (IDX) Information Disclosure, POLY faces sluggish demand for industrial products, both from within the country and abroad.
Management explained that the global overcapacity, the increase in export rates to the United States (US) to the increase in raw material prices was a challenge for the company's business.
Meanwhile, domestically, companies are facing uncertainty in government policies, such as the implementation of anti-dumping duties and revisions of import regulations that are not as expected by the industry.
"Therefore, the company will declare a permanent closure of this production unit and take the necessary steps to revise its business projections based on the operation of the Kaliwungu 'Kendal factory in the future," explained POLY management quoted from Information Disclosure, Tuesday, July 22.
POLY management has also made a number of efforts to complete debt restructuring with the Ministry of Finance (Kemenkeu) in order to reach a final agreement on the improvement of the proposal submitted by the company. However, the company admits that it will take longer to complete debt restructuring.
The company also admits that it continues to maintain and maintain the production facilities of chemical and fiber factories in Karawang so that they can be operated again. However, maintenance of the factory's production unit facilities requires high costs.
"The termination of production which lasted more than six months made the re-operation of our production unit facilities in Karawang become technically and commercially inappropriate," he said.
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POLY management added that the closure of production units in Karawang will have an impact on sales revenues by 2025 and in the following years.
Therefore, the company plans to revise its financial projections in accordance with operational limitations as a result of the closure of the Karawang production unit.
The Company will also immediately conduct a review and reposition other products and supporting factors in the Kaliwungu Factory production unit.
The management plans to continue the ongoing restructuring process in order to reach an agreement with creditors and investors. The hope is that the funding will increase its production.
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