SEMARANG (Yosefardi) – Sritex Grup build a fiber factory with investment cost of Rp3 trillion, targeted to operate by late 2015, Bisnis.com reported.
The factory is located in Sukoharjo, Semarang and will have production capacity of 80,000 tons per year.
Sritex opts to build fiber factory for reducing its dependency to imported fiber which now reached 50% of total fiber supply.
Textile giant PT Sri Rejeki Isman (Sritex) Tbk (SRIL), controlled by Lukminto family, also plans to invest US$50-100 million, equivalent Rp1.2 trillion, in fashion business. It will focus to develop this retail business within next 3 years.
The company will acquire local and global brands for fashion products, while creating its own products, and build retail stores. SRIL
targets its retail business to contribute Rp2 trillion revenue after 3 years. The company allocates capex of US$245 million for 2014-2016 period, used to fund the expansion of production capacity.
SRIL booked net profit of Rp264.8 billion in first nine months of 2014, grew by 5.7% from Rp250.4 billion in the same period of 2013. While net sales rose 44.1% to Rp4.9 trillion from previous Rp3.4 trillion.