P

ublicly-listed filter and radiator manufacturer PT Selamat Sempurna and Japanese company Tokyo Radiator Mig. Co. Ltd. have agreed to form a joint venture to produce and market heat exchange products.

According to a file submitted to the Indonesia Stock Exchange (IDX), Selamat Sempurna and Tokyo Radiator signed an agreement on Jan. 19 on the establishment of the joint venture, which would set up a factory in Tangerang.

Selamat Sempurna will own a 33 percent stake in the joint venture, while Tokyo Radiator will hold the other 67 percent. The total investment of the joint venture is expected to reach Rp 17.2 billion (US$1.93 million).

Selamat Sampurna corporate secretary Ang Andri Pribadi said that the new joint venture would be called PT Tokyo Radiator Selamat Sampurna.

“We are still in the process of submitting the deed of establishment to the Law and Human Rights Ministry. We hope that the ministry will grant permission soon, so that the joint venture can start operation in April at the latest,” Andri told The Jakarta Post over the telephone.

“For the short term, the joint venture will produce heat exchangers, such as radiators and intercoolers,” Andri added. He said that the joint venture would have capacity of producing up to 80,000 sets of radiators and intercoolers a year.

“The joint venture will sell all of its products to our domestic market. We see a growing demand for heat exchangers, in line with the increase in the number of automobile production, which is expected to reach one million units in 2013,” Andri said.

According to Andri, Selamat Sampurna has no plans to increase its ownership in the joint venture.

Selamat Sempurna reported sales of Rp 430.76 billion in the third quarter of 2011, a 23 percent increase from Rp 350.2 billion in the third quarter of 2010. The company’s total sales during the first nine months of 2011 reached Rp 1.31 trillion, jumping about 16 percent from Rp 1.12 trillion in the first nine months of 2010.

The company’s operating income reached Rp 72.52 billion in the third quarter of the year, rising 50.74 percent from Rp 48.12 billion in the third quarter of 2010. The third quarter operating income made the company Rp 220.21 billion in operating income in the first nine months of 2011, increasing by 38.5 percent from Rp 158.99 billion in the first nine months of 2010.

The company’s net profit stood at Rp 52.88 billion in the third quarter of 2011, increasing by 61 percent from Rp 32.93 billion in the third quarter of 2011.

The company’s total net profit during the 2011 January to September period reached Rp 160.91 billion, surging by 42.88 percent from Rp 112.61 during the same period of 2010. (rcf)