Building material provider PT Impack Pratama Industri Tbk (IMPC) has allocated IDR 280 billion (US$ 18.3 million) Capital expenditure (Capex) in 2023 for the construction and development of one of its factories at the Batang Integrated Industrial Estate (KITB) in Batang regency, Central Java.
Established in 1981, Impack is a producer and distributor of building material and plastic. The company has marketed its products in the Asia Pacific Region. Its famous brands include Impraboard, a carton plastic sheet made from polypropylene twin wall sheet; and Polyvic, a first food grade plastic made from vinyl compound. Its subsidiaries consist of:Â
- Impack Vietnam Co Ltd (with 100% ownership)
- Impack International Pte Ltd (100%)
- Impack One Pte Ltd (100%)
- Impack One Sdn Bhd (100%)
- Impack One Pty Ltd (100%)
- Mulford Plastics (M) Sdn Bhd (100%)
Impack continues its aggressive expansion
Impack’s factory in the KITB will start operational in the first quarter of 2024, Corporate Secretary Lenggana Linggawati told Kontan.co.id on February 9, 2023.
The company has been aggressively expanding its capacity of production since 2021. Its increasing capacity includes the newly added 3-line machine in the Cikarang Delta Silicon 2 factory, West Java.
It has also added more capacity for production in several other products such as uPVC line products and FRP products in Australia in 2021.
Recently, Impack also received fresh funds in November 2022 worth IDR 325 billion (US$ 21.4 million) from private placement. The company is also targeting a sales revenue growth of IDR 3.3 trillion in 2023.
“The plan to use these funds is primarily to support the fulfilment of Capex for the construction of a new factory at KITB, development of our existing and new products, uPVC ceilings for the Alderon and Adaron brands,” Linggawati explained.
Risks in plastic industry
There are 3 significant problems in the plastic industry, such as:
- Environmental impact: A significant problem in the plastic industry is the environmental impact of plastic waste, particularly in the ocean. Plastic takes hundreds of years to degrade and it harms marine life and ecosystems, as well as human health.
- Recycling challenges: Another major problem is the difficulty to recycle certain types of plastic, particularly those that are mixed or contaminated. In addition, the lack of infrastructure and consumer awareness around recycling exacerbates this issue.
- Dependency on fossil fuels: The production of plastic depends heavily on fossil fuels, particularly oil and natural gas. This creates environmental problems, including greenhouse gas emissions and energy use, as well as economic vulnerabilities to fluctuations in oil prices.
