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AGII Set to Build New Factory, Signs Contract with First Customer in KIT Batang
By Press Release25 November 2022
Jakarta, 25 November 2022 – PT Aneka Gas Industri Tbk (Bloomberg Code: AGII IJ or the “Company”) is set to build a new factory in Batang Integrated Industrial Estate (“KITB”), Central Java, Indonesia after officially signing a sale and purchase agreement to become an industrial gas supplier for one of the upcoming factories owned by KCC Glass Corporation (“KCC Glass”), a South Korean company that is currently building a factory that is projected to become one of the largest glass factories in Southeast Asia located at KITB.
Previously, the Company had signed an Industrial Land Utilization Agreement (PPTI) with PT Kawasan Industri Terpadu Batang (“PT KITB”) on October 6, 2022 at the Gumaya Tower Hotel, Semarang. Through this agreement, AGII will build a new factory located in KITB, where the construction process is targeted to last for the next 18-24 months.
"KCC Glass is our first customer at KITB," said Rachmat Harsono, President Director of AGII.
"This new factory will not only be the leading industrial gas provider for KITB tenants, but also for industrial and healthcare customers that are located in Central Java and surrounding areas. We have witnessed a vast increase not only in terms of industrial gas demand, but also in terms of medical gas demand from the region. This additional capacity will support us to meet existing demand growth and to simultaneously improve operational efficiency due to reducing the possibility of product distribution from West and East Java,” he added.
AGII's new factory at KITB will serve industrial gas needs via pipeline, bulk (liquefied gas) and cylinder. Sectors served will include Manufacturing, Infrastructure, Retail, Healthcare and Consumer Goods. The company is currently evaluating several competitive investment funding sources to support the Company's operational and financial performance during the construction of the factory at KITB.
As additional information, KITB has obtained several foreign investments made by tenants in the area including from KCC Glass Corporation and Wavin Manufacturing Indonesia, along with several domestic investments made by tenants such as Jayamas Medika Industri. KITB is also planned to become an area that will support the development of Indonesia’s electric vehicle industry.
"Samator will continue to remain dedicated in advancing national economic growth," said Rachmat. "The development of industrial estates is key in supporting the industrial downstreaming agenda of the Republic of Indonesia, and therefore we view that the potential for growth, driven by increased demand for industrial gas, to be very significant," he added.
