Fajar Wisesa prepares US$85 million for capital expenditure

as published in Bisnis Indonesia daily newspaper

Tuesday, 15/12/2009 00:00 WIB

Fajar Wisesa prepares US$85 million for capital expenditure

JAKARTA: PT Fajar Surya Wisesa Tbk prepares US$85 million capital expenditure by 2010 to purchase paper maker machinery.

Director of Fajar Wisesa Hadi R. Ongkowidjojo said the machinery will have full operational start in 2011 which is estimated to increase the production capacity and corporate sales.

Now the company has four types of paper maker machines with each capacity of 150,000 - 200,000 tons per year. The total corporate production is about 700,000 tons.

He said the production capacity of the new machine is about 300,000 tons per annum. He assumed the revenue could grow up from regularly IDR3 trillion into IDR4 trillion from the new machine contribution.

"Later we will build it in our plant location in Cibitung, Cikarang," he briefed the press yesterday.

The fund for new machinery purchase will be generated from US$70 million loans with local and overseas bank syndication.

The syndicated credit facility with 5 years tenure is managed by HSBC Ltd and United Overseas Bank Limited (UOB), assisted by PT Bank Rakyat Indonesia Tbk and Bank Mandiri of Singapore based.

Now the company has short term loan facility from some banks worth totally US$40 million. The position of corporate debt totally is at US$145 million of which the US$20 million is from short term.

The rights issue planned previously in 2008 could become one of the other options. But the implementation should still observe the capital market growth condition next year. " IF the capital market condition is good, so why not?"

The company has three product categories, linerboard and corrugated medium paper, coated duplex, and sack craft. (Bisnis/21)