PT. Kolon Ina, a joint venture between Korea¡¯s Kolon Industries Inc and its local partner PT. Inamulti Intipack, officially started operating its polyester film plant in Serang, West Java.
The plant, located on ninehectare plot of land, will produce 12,000 tons of polyester film a year.
Kolon Ina¡¯s president Song Sang Hyung said the plant was built with an initial investment of US$ 15 million.
¡°The plant is part of Kolon¡¯s business expansion worldwide as we are going to export most of our product,¡±  Song said.
He said the company would export 80 percent of its products, and remaining 20 percent would be marketed locally.
The new factory would prepare Kolon for global competition in the polyester market in Southeast Asia, as demand for product in the region would increase by 15 percent in the next few years, he said.
¡°We are also going to expand our market in America and Europe,¡± he said.
Kolon Industry Korea owns a 75 percent stake in the joint venture, and Ina Multi , the sole distributor of Kolon¡¯s product in the county, the remaining 25 percent.
Song said the joint venture was also building a nylon film factory at the same site, with approximate investment of US$ 70 million.
The plant would be able to produce 4,000 tons of nylon film a year and its completion is due in November, he said.
Kolon Industries is a subsidiary of Kolon Group, a Korean multinational company which is known as a producer of fiber products, including nylon and polyester filament, tire cord, and raw fabric.
The company, established in 1969, has diversified its business to nonfiber products as well, producing such things as engineering plastic, video film, and tape.
Song said Kolon Industries¡¯assets have reached US$ 1.77 billion, and its sales value, as of the end of last year, was US$ 1.1 billion.