Indonesian textile company PT Indo-Rama Synthetics Tbk is diversifying its business to gold and silver mining.
President Commissioner of PT Indo -Rama Synthetic Sri Prakash Lohia said the company has allocated US$64 million in capital expenditure (Capex) for the gold and silver mining expansion and for its core textile business.
Indo-Rama has targeted that the mining project development could be completed by the end of 2023 and will start its operation in the first quarter of 2024.
“In 2022, the company will focus on the continuation of [textile] capacity production, and upgrading technology and plant. The growth of the production will locate the company’s investment strategy for the future,” Lohia said recently.
Indo-Rama is a textile company focusing on spurn yarn and polyester yarn. It has companies in Turkey, Uzbekistan and Indonesia. Currently, the company has increased expansion in Indonesia starting in 2021 with a fixed asset of US$45 million. The factory began operation in the same year with an investment of US$47 million and gradually has increased to US$28 million in 2022 and US$90 million in 2023.
Its yarn production in Indonesia reached 12,000 tons. In 2021, its spurn yarn production reached 130,500 tons per year. It is projected to raise to 155,000 tons in 2022. While in 2023, the production capacity is estimated to increase by 15%.
The margin of spurn yarn is better than polyester yarn for now, as spurn yarn uses cotton as the main source if cotton price increases so does the demand-supply will be limited. For now, the factory’s capacity is 300,000 tons and the company will look upon the growth of spurn yarn production.
