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High demand propels capacity expansion by Nylon yarn makers

15
Nov '08
Amazingly, global financial crunch has failed to stem the demand for nylon yarn. This has prompted expansion of production capacities by companies in Indonesia. Reportedly, PT Indachi Prima and PT Matahari Sentosa are developing their production capacities by 20 percent.

Total expenditure for these two projects is anticipated to touch Rp50 billion (US$4.58 million). Indachi is supposed to spend around Rp30 billion and Matahari nearly Rp20 billion.

Experts are expecting that Indachi's project, already in progress, is likely to start its operations by the end of this year and Matahari would start its project early next year.

Both Indachi and Matahari manufacture nylon yarn for the production of swimsuits and army uniforms, as well as waterproof materials, like tents and rain coats and export to Middle Eastern and European Union countries.


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