Add Garment Production Capacity, Pan Brothers Build Factory in West Java

INDUSTRY.co.id - Jakarta - PT Pan Brothers Tbk (PBRX) will add another garment production capacity by building a factory plant in West Java. Construction of this plant will begin next year and is expected to start production in early 2019.

"The factory is under the banner of PT Teodore Pan Garmindo, which will have six million pieces of garment," PBRX Director Fitri Ratnasari Hartono told reporters in Jakarta on Thursday (14/09/2017).

PBRX is preparing a capital expenditure of approximately US $ 5 million for the Teodore plant to be disbursed gradually, starting in the middle of next year.

Meanwhile, two factories in Central Java are under the subsidiary of PT Eco Smart Garment Indonesia (ESGI). The plant will have a capacity of 21 million pieces per year.

Thus, ESGI plant capacity will be 48 million pieces per year. The source of investment funds for the construction of the plant comes from the issuance of USD 200 million PBRX bonds some time ago.

With these expansions, the capacity of garment factories by the end of 2017 will be 111 million pieces per year, up from last year at 90 million pieces per year. Then in 2018, PBRX targets the addition of installed capacity of up to 118 million pieces per year.

Currently, PBRX is working on the production of other companies' clothing brands. However, the company also has its own brand.

PBRX holds two inhouse brands, namely Zoe Black under PT Apparelindo Mitra Andalan, which has 30 outlets in Indonesia. Meanwhile, through its subsidiary PT Mitra Buana Sentosa, PBRX holds several brands, such as Salt N Pepper, Asylum and FTL.