JAKARTA: Listed paper converter company, PT Alkindo Naratama Tbk seeks up to US$2 million bank loan to construct new plants in Thailand.Alkindo requires US$1.5 million-US$2 million to realize such construction, said Alkindo President Director Herwanto Sutanto.We are going to seek bank loan as our cash is relatively small, reaching only IDR1 billion. We are yet deciding the banks as we are still waiting the review to be completed, he said yesterday.Alkindo considers to operate new plans merely to curb export expenses that reached 12% of the total operating expense.We are exporting paper rolls. By opening new plants, we will be able to save export expense significantly, he said.This new plant establishment can be realized through two schemes, acquisition and plant construction.Regarding acceleration of operational process, Alkindo will prioritize acquisition scheme by partnering with local company.There have been three potential strategic partners currently negotiating with Alkindo with regard such acquisition process.According to Herwanto, Thailand is Alkindos second largest export destination after Malaysia.Nevertheless, he highlighted the higher export expense to Thailand compared to Malaysia, triggering Alkindo to open new plant in Thailand first.He projects the net income to grow by 7%-8% subsequent to the new factory construction while sale contribution from Thailand will rise to 27% from the current 7%.In the first half this year, Alkindo packed IDR3.49 billion net income, soared by 736.36% compared to IDR418.59 million in the earlier year period, thanks to higher demand on the new product, honeycomb.Alkindos revenue grows 12.81% to IDR91.85 billion compared to IDR81.42 billion in the same period last year. (18) (t02/msw)

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