JAKARTA, NNC - PT Multistrada Arah Sarana Tbk (IDX:MASA) will budget US$26 million for capital expenditure (capex) throughout 2018. The funds will be mostly allocated to increase tire production capacity by 10 percent.
MASA's Finance Director John Ade Bunian M explained that the capex will be used to increase the company's tire production capacity, either for the Passenger Car Radial (PCR) or Motorcycle (MC) tires.
"As much as 90 percent of capital expenditure is intended to increase production capacity," he said in a public expose at the Indonesia Stock Exchange building in Jakarta, Wednesday (5/23/2018).
He explained that the capex will come from bank loan facility and internal cash of the company.
The company targets an annual increase in production capacity to 33,000 per day for PCR products and 20,000 per day for MC tires."Our utility will be pushed to 90 percent of the total production capacity," he explained.
He added that with the increase in capacity, the company expects to earn an increase of 10 percent to 12 percent in revenue. Over the past year, the company recorded revenues of IDR1.087 trillion and net loss of IDR109.4 billion.