Indonesia“s PT Asahimas Flat Glass Tbk plans to invest USD 24.50 million or IDR 269.50 billion to purchase machinery and installations to produce coated glass in Sidoarjo plant.
Asahimas corporate s…
Indonesia“s PT Asahimas Flat Glass Tbk plans to invest USD 24.50 million or IDR 269.50 billion to purchase machinery and installations to produce coated glass in Sidoarjo plant. Asahimas corporate secretary Hendrik Adrianto said the company plans to produce flat glass using Chemical Vapour Deposition (CVD) technology on the A-2 furnace at the flat glass plant in Sidoarjo, East Java. The technology license is held by the Belgian subsidiary of Asahi Glass, AGC Flat Glass Europe S.A. Asahimas will allocate some USD 24.50 million or IDR 269.50 billion to adopt CVD technology. The investment includes USD 14.20 million for machine purchasing, USD 2 million for machinery supplier costs, US 2.7 million for installation costs, and USD 2.5 million for unaffiliated contractors. The company has also budgeted USD 2.2 million for spare parts, design, training, and royalties to AGC Flat Glass Europe S.A., and other costs of USD 900,000. The investment will come from the company“s own funds. “As per 30 September 2008, our outstanding debt was zero. But we still have unused standby loan”, said Mr. Adrianto. Asahimas has a maximum loan facility of USD 35 million from the bank of Tokyo-Mitsubishi UFJ Ltd which will mature by 30 March 2009. Mr. Adrianto added that the company will start flat glass production with CVD technology by March 2009 on attaining approval from the extraordinary general meeting of shareholders (EGMS) on 18 February 2009. “The installation process is in March-May, commercial product starts in June-July”, he added. Asahimas is the main producer of glass sheet in Indonesia with over 40% market share. The company has three plants: Sidoarjo, with two furnaces, produces 150,000 tons of flat glass a year; Ancol plant produces a total of 270,000 tons of glass a year; and Cikampek outputs 1.2 million square meters of automotive glass.