JAKARTA – PT Sunindo Pratama Tbk (SUNI) is focusing the allocation of capital expenditure (capex) of IDR 327 billion for the construction of the second factory of PT Rainbow Tubulars Manufacture (RTM), its subsidiary, in Batam, in 2024.

“The entire allocation for this second factory construction is IDR 432 billion,” said Freddy Soejandy, Director of Finance of SUNI, during the Annual Public Expose 2024 today (12/6).

The detail includes IDR 57 billion for land acquisition, IDR 250 billion for factory, and the remainder, IDR 125 billion, for machine acquisition.

However, according to the progress, this year, SUNI will only spend IDR 327 billion. “This year, the construction will continue to take place, and our projection, in Q1 2025, this factory will begin its production,” Soejandy said.

Soejandy further mentioned that with the production increase will enable SUNI to record new customers, especially aside from Pertamina, which is the current primary client of SUNI.

“With this current production capacity, we are fully occupied to supply our current customers; the production is very crowded,” Soejandy said.

With this new factory, albeit not instantly operating with full capacity, will increase SUNI’s production capacity to 60-70 thousand tons per year.

As of now, SUNI’s production capacity reaches 30 thousand tons per year. “In percentage, that means it increases roughly 100% of current existing production capacity,” Soejandy concluded. (ZH)