Fajar Surya Set Paper Production Target At 1.2 Million Tons

Jakarta, Dec 5 (ANTARA) - Publicly traded paper maker PT Fajar Surya Wisesa Tbk (FAST) said it is set to post Rp5 trillion in sales next year up from this year`s target of Rp4 trillion. FAST Director Hadi R Ongkowidjojo said the company`s sales are expected to rise with an increase in its production capacity. The company hopes to boost production to 1.2 million tons next year after the modification of its paper machine with a production capacity of 350,000 tons per year. This year, the company hopes to produce only 900,000 tons of paper, Hadi said here on Wednesday. He said his company, which has 5 units of factory, has a 30 percent share of the paper market in the country The company produces packaging paper for consumer goods, electronics, pharmaceuticals and shoes . Hadi said in the first nine months of this year , his company posted worth Rp2.88 trillion - down 5 percent from the same period last year. He attributed the decline mainly to temporary stoppage of factories undergoing modifications Next year the company is expected to perform much better. The company disposes of most or 94 percent of its production on the domestic market with only 4 percent for exports. In 2013, the company hopes to chalk up at least Rp250 billion in net profit assuming that the rupiah stability could be maintained. The stability of rupiah is determinant as almost all components, production are priced in US dollar "If the rupiah gains against the US dollar, the profit would be higher," he said.