INKP - Factory construction progress reaches 28% in February 2024

INKP - Factory construction progress reaches 28% in February 2024 Indah Kiat Pulp & Paper (INKP) revealed that the progress of building a new factory in Karawang, West Java has reached 28% in February 2024 and has realized 25% of its capex, which was funded by its internal cash and USD1.8 bn from syndicated loans of 29 banks. INKP has started construction of the plant with a capacity of 3.9 mn tons since 2023 with a capex allocation of USD 3.6 bn. Once the plant is operating, it is estimated that INKP's production capacity will reach 11 mn tons. INKP targets commissioning of the new plant to begin in 1Q25 with utilization rates reaching 50-60% until the end of 2025 and increasing to 90% in 2026. INKP expects the new plant to have a 30% lower cash cost due to the integration of production and the use of biomass as its main fuel. INKP also expects its industrial paper to have around 35-40% Gross Profit Margin (GPM). INKP plans to export 80% of the new plant' total output to China, the Philippines and European countries. (Source : Investor Daily)