Avia Avian (AVIA) Will Modernize Factory in Sidoarjo

February 15, 2024, 01.10 AM  | Reporter: Rashif Usman
Avia Avian (AVIA) Will Modernize Factory in Sidoarjo

ILUSTRASI. Sales of PT Avia Avian (Avian Brands) paint products at building materials supermarkets, Bekasi, West Java. KONTAN/Cheppy A. Muchlis

CORPORATE ACTION - JAKARTA. PT Avia Avian Tbk (AVIA), a paint issuer from Tancorp Group, has several agendas to maintain its business sustainability. One of the agendas is the modernization of some facilities of AVIA's first factory located in Sidoarjo, East Java.

Avia Avian's Head of Investor Relations, Andreas Timothy Hadikrisno, said that the modernization or renovation plan of the factory will begin when the company's paint factory in Cirebon has started production. 

"The modernization plan for the Sidoarjo factory will be carried out in stages starting from 2026-2027," Andreas told Kontan on Wednesday (14/2).

Andreas mentioned, the budget for this modernization comes from capital expenditure (capex) amounting to 2% of total sales.

"The capacity will remain the same for the Sidoarjo factory. This plan is only for renovating facilities that are already old so that production becomes more efficient and less energy consumption," he said.

It should be noted, AVIA currently has its first paint factory in Sidoarjo with a capacity of 213,840 metric tons (MT). Then, the second factory was established in 1996 with a total capacity of 72,576 MT located in Serang, Banten. 

Most recently, the company will build a third factory with a capacity of 225,000 metric tons in Cirebon, West Java. This third factory is scheduled to be completed by the end of 2025 and start production of 50% of the total capacity at the beginning of 2026.

For information, (AVIA) recorded revenue of IDR 5.16 trillion throughout the third quarter of 2023. This figure is up 4.15% compared to the same period the previous year of IDR 4.95 trillion.

If detailed, revenue from its own distributor increased by 5.2% to IDR 4.52 trillion, third-party distributor decreased by 4.54% to IDR 604.94 billion, then direct sales increased by 44.9% to IDR 35.08 billion. 

Meanwhile, the total assets of AVIA increased from IDR 10.79 trillion at the end of 2022 to IDR 11.34 trillion on September 30, 2023.

Next: US Crude Stockpiles Rise, Products Draw Down as Refining Drops

Editor: Syamsul Azhar

Latest News