UT suspends diversification plan
Friday, December 5 2014 - 04:22 AM WIB
IDX-listed heavy equipment company PT United Tractors Tbk, which also operates coal mines, has decided to put on hold its previously announced plan to acquire a nickel mine as the company to date has not been able to obtain mines with the expected reserves.
?We decided to temporarily put on hold the (diversification into) mineral,? said Corporate Secretary Sara Lubis, but quickly added this does not mean the company has completely dropped the diversification plan.
As reported by this portal in September, UT President Director Djoko Pranoto said the company was seeking to acquire a domestic medium-scale nickel mining firm as part of a diversification strategy amid the lingering downturn in the global coal market.
Elsewhere, Sara said that heavy equipment sales this year is expected to be lower than initially targeted due the weak coal industry. She said that sales volume is now estimated to reach 3,700-,3,800 units, lower than the initial target of 4,000 units. She said that per October, sales has reached 3,200 units, adding that the company was expected higher sales in the non-mining sector particularly infrastructure to help compensate from the slowing market in the mining sector.
Meanwhile, Sara said that coal output this year is estimated to reach 5.5 million tons.
Editing by Reiner Simanjuntak