Construction services firm PT Waskita Beton Precast, a subsidiary of state-owned general contractor PT Waskita Karya, plans to spend Rp 1.9 trillion (US$142.07 million) this year mainly on two new factories.
Waskita Beton Precast president director Jarot Subana said Tuesday that it would build a new precast factory in Paser Penajam regency, East Kalimantan, as well as acquire a local precast company in Medan, North Sumatra. The expansion would be funded by capital expenditure sourced from the remaining funds of its initial public offering (IPO) last year, he added.
The two factories will raise the firm’s production capacity to 3.5 million tons of precast each year.
“At present, with 10 factories, we can produce 2.65 million tons [of precast] a year and there’s extra output from our two temporary factories in Palembang, South Sumatra, and Sidoarjo, East Java, totaling 200,000 tons each,” Jarot said.
This year’s expansion is part of Waskita Beton’s plan to strengthen its business outside Java by expanding new facilities until 2018, which will require Rp 4 trillion in total.
It aims to gain Rp 1.1 trillion in net profits this year, up 73.3 percent from Rp 634.81 billion in 2016.
An extraordinary shareholders’ meeting agreed that half of the firm’s 2016 net profit would be given to shareholders as dividends, while 45 percent would be kept as retained profit and the remaining 5 percent would serve as reserve profit.