Latinusa boosts capex to improve production facility

By Thomas Sembiring

IDX-listed tinplate producer PT Latinusa Tbk allocates a much higher capital expenditure (capex) this year of US$6 million, compared to $1 million allocated for last year.

President Director of Latinusa Adhirman TA told Petromindo.com on Tuesday that much of the capex would be used to finance the improvement of its production facility as the company seeks to bolster the quality of its products, which are mostly absorbed by the packaging industry.

He said that only about 65 percent of last year?s capex allocation was utilized.

Adhirman said that the company last year booked a revenue of $131.6 million, 4.1 percent lower than previous year?s, despite a 6.51 percent increase in sales volume.

Finance Director Jetrinaldi said that the lower revenue was attributed to lower selling price of the company?s products and raw material price factor.

Adhirman said that sales this year is targeted to increase by 3 percent, and that the company will continue to focus on meeting growing demand in the domestic market.

Editing by Reiner Simanjuntak