JAKARTA: Publicly listed tire producer PT Multistrada Arah Sarana Tbk, bagged a 36.19% profit growth in the first half of 2011 as sales volume and selling prices rose.Net income rose to IDR121.74 billion in the January-June period, compared to IDR89.39 billion in the year earlier period, according to a company filing to Indonesia Stock Exchange yesterday.Average sale price rose 7%, Multistrada Head of Investors Relations Even Goh said yesterday.In line with such net income jump, Multistrada also recorded 23.67% operating income jump, amounting to IDR151.91 billion compared to IDR122.83 billion.However, its operating profit margin fell to 11.02% compared to 12.19%. The gross income soared by 20.85% to IDR257.96 billion compared to IDR213.45 billion.Sales rose by 36.63% to IDR1.38 trillion compared to IDR1.01 trillion. Of Multistradas consolidated sales, export market absorbed IDR1.04 trillion while the remainder was contributed by local market.At the end of June 2011, PVP XVIII Pte Ltd Singapore owns 27.3% of Multistradas shares, tailed by PT Central Sole Agency (9.6%), The Bank of New York Melon (7.3%) and public (55.8%).Expansion fundMultistrada requires US$300 million-UD$500 million to back its business expansion over the next three years.The company plans to raise its production capacity to 45,000 tires per day from a targeted 28,500 tires a day this year, said Multistrada President Director Pieter Tanuri.The company will also increase its motorcycle tire production to 40,000 tires per day from 16,000 tires per day.In order to accomplish such targets, the company plans to construct new plants, most probably located in Java, Pieter said while stressing that he does not rule out having the new plants outside Java.In carrying out its business expansion, Multistrada has secured the shareholders approval to guarantee its assets including land, building and machinery.Multistrada allocated US$180 million for such expansion. About 15% of such amount was derived from internal cash and the remainder was generated from bank loans.Pieter added that the company has also secured loan commitment from several banks including the syndication of HSBC, CIMBG Niaga, BII and some other foreign banks. (t02/msw)

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