Bogor, Indonesia, Jan 9, 2015 - (ACN Newswire) - PT Indo Kordsa Tbk has inaugurated a new plant valued at approximately US$ 100 million with production capacity of 18 kiloton for tire cord, and a production capacity of 14 kiloton for polyester yarn, located in Citeureup, on January 6, 2015. This makes PT Indo Kordsa Tbk the second largest tire producer within Kordsa Global, Turkey, in the category of companies engaged in the field of fiber raw material suppliers of tires, nylon fibers, polyester, rayon and nylon yarns for tires.
The new plant was inaugurated by the Minister of Industry of the Republic of Indonesia, Saleh Husin, and was attended by Guler Sabanci, Chairman and Managing Director of Sabanci Holding of Turkey, Cenk Alper, CEO of Kordsa Global, Ali Caliskan, Vice President Operator of Kordsa Global, Nuri Refik Duzgoren, President Director of PT Indo Kordsa Tbk, and Nurhayanti, (Acting) Regent of Bogor.
Cenk Alper said, "Indonesia is a major investment destination that we have chosen rather than other countries. The investment worth US$ 100 million is the largest investment undertaken by the company outside Turkey. With this second plant, our total investment in Indonesia has reached US$ 200 million (approximately Rp 2.5 trillion), while the total production capacity now reaches 105 million tons."
Alper added, "Since 2007 when investing the first time in the Asia Pacific region, the local and global team strives to provide added value by bringing product standards of the Kordsa Global. Our standard is improving quality, reducing costs and improving service. We have to maintain our presence in an increasingly challenging environment."
President Director of PT Indo Kordsa Tbk, Nuri Duzgoren explains, "The second factory covers an area of 24,000 hectares with production capacity of 18 kilotons of tire cord and 14 kilotons of polyester yarn. The new plant is also able to absorb 1,200 workers. We are proud to have managed to expand our plant in Indonesia, and help support the national economy and reduce unemployment rate."
Nuri added, "Currently, the exports of PT Indo Kordsa reach US$ 90.67 million or 48 percent of total sales of US$ 191 million. With additional production capacity, the exports value is expected to increase from US$ 90.67 million to US$ 130 million, while the value of sales in domestic market, given the additional supply, is expected to increase from US$ 99.37 million to US$ 141 million."
Meanwhile, President Director of Sabanci Holding, Mehmet Pakarun said that one of the reasons the company continued to expand in Indonesia is due to the labor force and tenacity of labor in Indonesia.
"The attractiveness of Indonesia is more to the presence of young entrepreneurs and the working spirit of the workforces who always want to work better every day," said Mehmet.
On the same occasion, the Industry Minister who inaugurates the new plant expresses his hope that Indo Kordsa will be more expansive in investing in Indonesia in the next few years, given that, the economy continues to grow and is getting close to the implementation of the ASEAN free trade.
"We are hoping that there will be second, third and more factories in the years to come," Husin said.
About PT Indo Kordsa Tbk PT
Indo Kordsa Tbk was established in July 1981 under the name of PT Branta Mulia (BRAM), and engages in producing tire cord, nylon fibers, polyester, rayon and nylon yarns for tires. BRAM listed on the Indonesia Stock Exchange in 1990.
In December 2006, BRAM was taken over by a large company from Turkey, called Kordsa Global. Until now, Kordsa Global has subsidiaries in 7 countries in 5 continents in the world, namely: Germany, Egypt, USA, Brazil, China, Thailand and Indonesia. In 2007, Branta Mulia (BRAM) officially changed its name to PT Indo Kordsa Tbk.
About Sabanci Holding
Sabanci Holding is the parent company of the Sabanci Group, a leading conglomerate in the financial and industry sectors in Turkey. Companies of Sabanci Group are market leaders in their respective sectors in financial service, energy, cement, retail and industrial area. Listed on Borsa Istanbul (BIST), Sabanci Holding is the controlling shareholder of 10 companies that are also listed in BIST.
Sabanci Group companies are currently operating in 18 countries and market their products throughout Europe, the Middle East, Asia, North Africa, North and South America. Having had a significant investment value in Turkey, Sabanci has experienced tremendous growth in its core businesses. Its reputation and brand image help extend its operations into the global market. Sabanci Holding multinational business partners are including leading companies such as Ageas, Aviva, Bridgestone, Carrefour, Citi, E.ON, Heidelberg Cement and Philip Morris.
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