Dwi Aneka Jaya Kemasindo Sets Aside $43m for Subang Factory

Thursday, Sep 04, 2014

Listed printing and packaging company Dwi Aneka Jaya Kemasindo is setting aside Rp 500 billion ($42 million) to build a new packaging factory in West Java.

“Currently we are scouting for a location in Subang [West Java]. Total investment will include land acquisition costs of around Rp 200 billion,” Dwi Aneka Jaya Kemasindo finance director Witjaksono said Tuesday. He added that the company would source the funds from internal cash and external funding.

The construction of the new packaging factory, which will occupy 30 hectares, will start in 2017 as Dwi Aneka expects the plant to begin operations in 2019.

The Subang factory will be Dwi Aneka’s fourth, and will have a production capacity of 100,000 metric tons annually, which will help the company’s corrugated packaging and offset printing business.

Dwi Aneka has three packaging plants in Tangerang, Banten, with a combined annual production capacity of 48,000 tons of corrugated packaging material and 35,000 tons of offset-printed paper.

Last month, Dwi Aneka said it would spend some € 8 million ($10 million) on new production machines next year.

The newly listed company said in April that it would use 40 percent of the proceeds from its initial public offering to buy new production supporting machinery.

It raised Rp 470 billion from the sale of a 40 percent stake.

Dwi Aneka is targeting Rp 900 billion in sales and Rp 125 billion in net income this year, or about 75 percent and 78 percent year-on-year increases from last year, respectively.

The company reported total net sales of Rp 512 billion last year, while profit stood at Rp 70 billion.

Net income at the Tangerang-based company rose 89.6 percent to Rp 55 billion in the January-June period this year from the same six months last year, according to its financial report to the Indonesia Stock Exchange (IDX). Sales jumped 125.9 percent to Rp 418 billion from a year ago.

Dwi Aneka Jaya Kemasindo describes itself as a leading player in the packaging industry. It was established in 1996.