Indopoly Wants To Expand To Increase Production Capacity By 65 Percent

Photo: Doc. Indopoly

JAKARTA - PT Indopoly Swakarsa Industry Tbk (IPOL) plans to expand by increasing the company's production capacity by 65 percent from 100,000 tons of film per year to 165,000 tons per year. With this expansion, the company hopes that revenue will grow by 50 percent in 2024.

"The company believes that with this additional capacity, economies of scale can be achieved so that in the end it will contribute to increasing shareholder value," said President Director of Indopoly Swakarsa Industry Henry Halim in his statement, quoted on Thursday 9 June.

The increased production capacity is the factory in Purwakarta, Indonesia at 25,000 tons per year and the factory in Suzhou, China at 40,000 tons per year. Thus, the total production capacity of IPOL in 2024 will come from factories in Yunnan, China of 10,000 tons per year respectively; Suzhou, China 165,000 tons per year; Purwakarta, Indonesia 90,000 tons per year.

"We export a lot from Indonesia, around 40 percent. So we see the needs of Australia, America and Europe, so we chose to expand in Indonesia," Henry explained.

Meanwhile, the expansion of production capacity in China was carried out because the demand for flexible packaging grew above 5 percent per year. The expansion was carried out by purchasing two Biaxially-Oriented Polypropylene (BOPP/PE) production machines from Bruckner Maschinenbau GmbH & Co KG.

Deputy President Director of Indopoly Swakarsa Industry Jeffry Halim explained that the company has budgeted an investment of around US$ 87 million for this expansion. The source is internal cash and other financing facilities.

The purchase of the machine, one of which will be facilitated by financing from DZ Bank AG Deutsche Zentral Genossenschaftsbank, Frankfurt am Main, which was signed on Friday 3 June. This facility has a ceiling of 14.4 million euros or the equivalent of 15.38 million US dollars.

Meanwhile, based on the results of the shareholders' decision at the AGMS held yesterday, Wednesday 8 June, IPOL will distribute a dividend of 28 percent of its 2021 net profit.

IPOL will distribute dividends of Rp. 5.5 per share, so that the total dividend distribution on profits for the 2021 financial year will reach Rp. 35.4 billion. The details including the distribution schedule will be announced later.

Over the past year, IPOL managed to record revenue growth of 21 percent to US$239.41 million from US$197.89 million. Revenue growth also boosted profit performance.

Until the end of 2021, net profit attributable to owners of the parent company grew 12% to US$8.8 million from US$7.9 million.