Indal Aluminium to spend $15 million on expansion

IDX-listed aluminum extrusion producer, PT Indal Aluminium Industry Tbk (INAI ) said that the company would spend up to US$15 million to increase production capacity to 2,500 tons a month, Investor Daily reported.

The company?s executive managing director Alim Prakasa said that the production capacity expansion would be carried gradually until 2013 with the first stage aimed to add an extrusion machine with a capacity of 750 tons a month.

In addition, the company would also add anodizing line capacity from 500 tons to 1,500 tons a month.

In the second stage, Indal would further increase the capacity of the extrusion machine by 750 tons a month. ?The gradual increase in the production capacity is expected to further increase product lines and increase prices, because product value will improve with new facilities,? he said in Surabaya.

Alim said that Indal had secured loans worth $15 million from national and foreign banks to finance the planned expansion projects of which between $8 million and $9 million would be used to purchase machinery.(*)