Rising Trends in Post-Covid Use of Recycled Products Benefit INOV
By : Nata Kesuma | Thursday, February 02 2023 - 11:23 IWST
PT Inocycle Technology Group Tbk (INOV)
INDUSTRY.co.id - Jakarta, January 25th 2023 – PT Inocycle Technology Group Tbk (INOV), an issuer engaged in recycling plastic bottle waste (PET) into Recycled Polyester Staple Fiber (RePSF), optimistic that its sales in 2023 will continue to grow. This optimism is supported by the increasing trend of using recycled products post Covid-19 pandemic. During the pandemic, the fear of the transmission of Covid-19 had interrupted the supply chain and made some people stop using recycled materials.
In line with increasing demand and public awareness of the importance of using recycled products, INOV will continue to expand its business. The Company estimates that sales in 2023 will be able to grow double digits.
"We expect that sales will continue to grow. Therefore, the challenge in 2023 will not come from the sales side, but will come from the costs side that are likely to increase due to the high price of commodities, especially energy prices due to the prolonged Russia-Ukraine war. In addition, rupiah exchange rate fluctuations against the US dollar are also our serious concern this year, as it has the potential to erode the Company's revenues," said Director of INOV, Victor Choi.
In line with the optimistic view of demand growth this year, INOV expects its RePSF factory in Medan to start commercial production in the first quarter of 2023. The new factory will increase the Company’s production capacity by 23% from its current total production capacity of 40,000 tons per year. In addition to the new factory in Medan, INOV will continue to build recycling center factories and washing facilities in small and medium cities in Indonesia.
Victor Choi emphasized that INOV is committed to continuing to produce recycled products that are more environmentally friendly, with quality equivalent to virgin plastic products. With these highquality standards, INOV products become the core material for various manufacturing industries.
As for 2022, until the third quarter the Company has recorded sales managed to book sales of IDR533.99 billion, increase 15% from IDR464.64 billion in the same period the previous year. The sales growth is in line with the Company's projection.
Revenue growth was driven by an increase in RePSF's sales volume which consistently continued to increase. The RePSF product was still a growth catalyst in the 9M22 period by posting sales of IDR 378.13 billion and an increase of 18% YoY. In addition, non-woven products also recorded a double digit growth of 11% YoY per 9M22. RePSF and Non-woven products have very versatile functions, being core materials for various industrial sectors.