Sritex set capital expenditure of US$245mn to increase production capacity

PT Sri Rejeki Isman Textile (Sritex) a leading vertically integrated textile and garment company plan to operate the new plant rayon (fiber) worth US $ 250 million or equivalent RP 3.2 trillion with a capacity of 80 thousand tons per year by next year which will reduce imports of raw materials by 30 percent. This will be the third rayon factory in Indonesia after PT Indo Bharat Rayon and PT Pacific Viscose.

According to Iwan, a factory covering an area of 100 hectares has been built over the last 1.5 years with an investment of US $ 250 million. In addition, the plant is planned to have a capacity of 80 thousand tons per year is the 12th factory-owned companies, all located in Karanganyar, Central Java.

Referring to the data belonging to the company, Sritex will add the garment production of 14 million pieces per year in 2014 to 30 million pieces per year in 2016. In addition, the production of cloth will increase from 120 million meters in the last year to 180 million meters in front.

In 2015, capital expenditure as much as US $ 104 juta was declared. Dari funds, amounting to US $ 45 million will be used to add the finishing division in the factory, as much as US $ 10 million for the garment division, and the rest is used for weaving and spinning yarn. All funds will come from internal cash.

Textile and garment companies from Solo, PT Sri Rejeki Isman Tbk (Sril) or Sritex prepared a capital expenditure of US $ 245 million to boost the company’s expansion to 2016.

Finance Director Allan Moran Sritex Severino said that the company is preparing the fund to increase the production capacity of the plant as the demand from customers is increasing.