Press Production Cost, Ricky Putra Globalindo Factory Relocation To Tegal

INDUSTRY.co.id - Jakarta - PT Ricky Putra Globalindo Tbk (RICY) continues to reduce production costs after having laid off as many as 200 employees due to the decline in production. One of the steps taken by a company engaged in the manufacture of underwear and fashion clothing is to relocate their factory to Tegal, Central Java.

A total of 300 units of machinery from the factory located in Bogor will be moved to the production of pants and underwear in Tegal.
RICY Director, Tirta Heru Citta, said that production is still at the stage of road tests or trials because the number of human resources is still lacking.

"We hope October can work, but the trial may take three to six months," he said in Jakarta on Monday (21/08/2017).

Tirta added, the relocation of this factory aims to reduce production costs, especially the cost of salaries of employees. As is known, regional minimum wage standard (UMR) in Central Java is lower than UMR in Bogor, West Java.

According to Tirta, the high UMR in West Java is very influential on corporate spending. Investment costs for the transfer of production is worth Rp 2 billion to Rp 3 billion. However, he still can not predict the production capacity that can be generated from this new plant.

Currently, yarn production capacity has been reduced by 25% since July 3 this year. "Initially the production could reach 4,800-5,000 bales (1 bale = 181.44 kg) yarn per month, now only 3,000 bales yarn per month," he said.

The plant in Cicalengka, Bandung has a production capacity of 60,000 bales per year, while the factory in Citerup, Bogor produces 30,000 pieces of men's underwear.