Timah not to lay off 2,500 workers this year: Erry
Monday, March 4 2002 - 09:50 AM WIB
Timah president director Erry Riana Harjapamekas said he hoped the prices would even rise to $6,000 per ton.
Last December the firm said it had been forced to cut the workload of its 5,221 workers, and had considered to axe about 2,500 jobs for efficiency reasons.
Erry said on Monday his company?s net profits amounted to only Rp 36.78 billion (US$3.61 million) in 2001, which has enabled Timah to plan distributing to its creditors and shareholders dividends of Rp 1 per share. In 2000, Timah?s net profit reached Rp 331.567 billion, Erry said.
Timah is 65-percent owned by the government, while Indonesia is the world?s second largest tin producer after China.
The firm is suffering an acute financial problem due to a continued drop in tin prices. According to a study, the company, with an estimated loss of Rp 50 billion, can survive until April this year if no significant rescue plan is made. (*)