USITC ANTIDUMPING INVESTIGATION ON POLYESTER STAPLE FIBER

UNCLAS JAKARTA 000390

SIPDIS

SIPDIS

DEPT FOR EB/TPP/MTA AND EAP/MTS
COMMERCE FOR USITC LMSCHLITT

E.O. 12958: N/A
TAGS: ETRD ECON ID
SUBJECT: USITC ANTIDUMPING INVESTIGATION ON POLYESTER STAPLE FIBER
FROM CHINA

REF: STATE 6567


1. Summary: This cable responds to reftel request for Indonesia
industry-wide information related to certain polyester staple fiber.
End Summary.



2. Post obtained information and data contained in para 4 through
the Indonesian Synthetic Fiber Production Association (ISFPA) and
through publicly available material on the internet. According to
ISFPA representatives, of the five companies referred to in reftel,
PT. Tiejin is the only producing polyester staple fiber in
Indonesia. However, ISFPA admits that it is not familiar with the
other four companies listed in reftel. ISFPA claims that the data
and information contained in para 4 are representative of the entire
polyester staple fiber industry in Indonesia.


3. In response to our request, Indonesia's Ministry of Trade (MOT)
also promised to provide information related to Indonesia's
polyester staple fiber industry. However, recent floods affecting
70 percent of Jakarta have delayed their efforts. According to
Indonesia Ministry of Trade (MOT) Directorate of Trade Defense
Official Freddi Josep Palawi, the MOT will be able to provide some
limited information by February 14. Palawi also noted the following
information about the five companies referred to in reftel: PT.
Global Fiberindo claims it has returned its questionnaire to USITC;
PT. Triyudia Busanamas and PT. Glove Perdana Garment apparently have
ceased operations or no longer produce polyester staple fiber; and
PT. Teijin Indonesia Fiber Corp. is still in the process of
responding to the questionnaire. Should we receive further
information from the MOT, we will forward it immediately to the
USITC point of contact's email address listed in reftel.


4. According to ISFPA, Indonesia is one of the world's 10 largest
producers of synthetic fiber, with total capacity of 1,102,311.3
thousand pounds of polyester staple fiber, 1,818,813.7 thousand
pounds of polyester filament yarn, and 66,138.7 thousand pounds of
nylon filament yarn. There are 14 major companies that produce
these products for domestic and foreign consumption in Indonesian:

-- PT. Indonesia Toray Synthetics (Toray),established in 1974,
operates with technical support from Toray Japan. Toray started to
manufacture nylon filament yarn in 1973 as the pioneer company
producing nylon filament yarn in Indonesia. A year later in 1974,
the company also pioneered the manufacturing of polyester staple
fiber in Indonesia. In 1990, Toray expanded its production
capability to manufacturing polyester filament yarn. Toray produces
for both the Indonesian domestic market and exports to Japan,
Thailand, Taiwan, Iran, Ethiopia, Philippines, Latin America,
Australia and South Africa. Toray's current production capacity per
annum is 146,827.9 thousand pounds of polyester staple fiber;
33,069.3 thousand pounds of polyester filament yarn; and 35,714.9
thousand pounds of nylon filament yarn. The company is located at
Summitmas II Building, 3/F, Jl. Jend. Sudirman 61-62, Jakarta 12069,
Indonesia and its factory is at Jl. Mohammad Toha Pasar Baru,
Tangerang 15112, Indonesia.

-- PT. Kukuh Manunggal Fiber Industries (Kumafiber),established in
1976, Established in 1976, Kumafiber began trial production in
Indonesia in 1976 with only 70 pounds per day of polyester staple
fiber. Running at full capacity, the factory can currently produce
40,234.4 thousands of pounds of polyester staple fiber for cotton
and rayon blends per year for both domestic and export markets. The
products are made using Japanese machineries with pure terephthalic
(PTA) and mono ethylene glycol (MEG) as its main raw materials.
Kumafiber is located at Jl. M.H. Thamrin Cikokol, Tangerang,
Indonesia, tel: +62 21 5575-3491, fax: +62 21 554-8665.

-- PT. Teijin Indonesia Fiber Corporation (Tifico) is a Joint
Venture company (Teijin Limited Japan 65%, Tomen Corporation Japan
13.4%, and local Indonesian shareholders 18.6%). Established in
1973, the company has produced polyester synthetic fiber (filament
yarn and staple fiber) for textile raw material since 1980. In 1987
Tifico expanded its production to include polyester staple fiber of
189,101.5 thousand pounds per year and polyester filament yarn at
168,984.3 thousand pounds per year. Tifico is located at Jl. Raya

M. H. Thamrin, Tangerang, Indonesia. Tel: +62 21 53121531 Fax: +62
21 5398466.

-- PT.Susila Indah Fiber Industries (Sulindafin),established in
1978, is one of the leading players in Indonesia's polyester and
nylon industries. With a continuous polymerization plant, as well
as a batch polymerization plant, Sulindafin produces a wide range of
polyester chips including semi dull, full dull, bright, super
bright, cationic, flame retardant and differential shrinkage with a
capacity of 220 ton/day. These chips are processed into flat and
textured yarns for knitting, weaving and industrial applications.
Using machineries from Zimmer, Reiter Scrag & Barmag of Europe and
Teijin Seiki & Murata of Japan, the company also produce variety of
specialty and performance yarns including micro, bi shrinkage,

moisture absorbent, anti bacteria and flame retardant. Sulindafin
produce polyester staple fiber both for spinning, as well as for
non-woven applications and colored fiber for the carpet industry.
Sulindafin's production capacity is 160,093.7 thousand pounds per
annum each for polyester textured yarns (for knitting and weaving
applications, denier 50, 75, 100, 150, 200, 225, 300, 450 & 600,
filaments 34 to 288, luster semi dull, full dull and bright, torque
normal, low and zero, intermingle non intermingle, soft intermingle
+50 ptm, and hard intermingle + 100ptm),polyester flat filament
yarns (for knitting and weaving applications, denier 75 and 150,
filaments 36 to 96, luster semi dull and bright, cross section
round) and polyester staple fiber (for spinning applications, denier
1.3 and 1.7, cut length 38, 44 & 51 mm, luster semi dull).

-- PT. Polychem Indonesia (Polychem) is a leading polyester and
polyester-related chemical producer in Indonesia. Polychem is the
only mono ethylene glycol and exthoxylate producer in Indonesia.
Polychem's extoxylate facility is built to cater to growing demand
for surfactant products as well as to create synergies with its mono
ethylene glycol facility. In 2004, Polychem started producing
Hollow Conjugated Fiber, extending its product range to support the
growing polyester industry in Indonesia. It employs a process
technology licensed by Scientific Design Co. Inc., USA, and has an
installed capacity of 63,934.1 thousand pounds per annum. The
company's head office is located at Wisma Diners Club 7th Floor, Jl.
Jendral Sudirman Kav. 34 Jakarta 10220, Indonesia. Tel: +62 21
5709292, fax: +62 21 5727868 with manufacturing facility located in
Tangerang, Karawang and Merak.

-- PT.Vastex Prima Industries (Vastex),established in 1978,
produces polyester filament yarn with production capacity of
30,864.7 thousand pounds per annum for both domestic and export
markets. The polyester filament yarn output are raw white and dope
dyed black, grade A, made from polyester chip. Vastex is located in
Jl. Rumah Sakit No.7, Rancasari, Bandung 40631, West Java,
Indonesia. Tel: +62 22 780-1000, fax: +62 22 780-3455.

-- PT.Polysindo Eka Perkasa (Polysindo) produces polyester staple
fiber, polyester filament yarn, polyester chips and polyester
textured yarn. The company's head office is located at Sentra Mulia
Bldg, 10th floor, Jl. Rasuna Said Kav. X.6 No. 8, Jakarta 12940,
Indonesia. Tel: +62 21 252-2414, fax. +62 21 522-9380, while its
factories are located in Karawang and Bandung, West Java.

-- PT.Panasia Indosytec (Panasia) has a production capacity of
58,202 thousand pounds per annum. Panasia's products include: 1)
100% virgin polyester fiber (product range: 1.4D/38MM, 51 MM, and
0.8 D/ 38 MM). This is commonly used as raw material in the
spinning for spun yarn; 2) polyester stapler fiber: solid,
siliconised and regular (6D/51mm, 64 mm15D/51mm, 64 mm12D/51mm and
64 mm). The product is made from a mixture of 100% virgin polyester
chip and recycled polyester material. Dinier range: 75/36F/2,
100/36F/2, 150/36F/1, 150/48F/1, 150/48F/2, 150/96F/1, 150/96F/2.
Panasia is located at Jl. Garuda 153/74 Bandung 40184, West Java,
Indonesia. Tel: +62 22 603-4123, fax: +62 22 6031643.

-- PT. Indorama Synthetics (Indorama produces premium quality raw
materials, mainly polyester based, for the global textile &
packaging industries, exporting primarily to Europe & North America,
South America, Australia and Middle East. Indorama's products
include polyester filament yarns, polyester staple fiber, polyester
chips, and PET bottle grade resins, with production capacity at
577,611 thousand pounds per annum. The Polyester Division employs
state-of-the-art technologies from global technology and equipment
suppliers including DuPont (USA),Zimmer & Barmag (Germany),Toyobo,
Teijin Seiki & Murata (Japan). Indorama claims to be the only
company in Indonesia with a completely computerized and automated
polyester yarn package handling and testing system, matching
standards set at DuPont's newest plant in the USA. Indorama's
polyester products include partially oriented yarns, draw textured
yarns, flat yarns, polyester staple fiber, and textile grade chips.
The company is located at Jl. H.R. Rasuna Said Blok X-1, Kav. 1-2,
Jakarta 12950, Indonesia. Tel: +62 21 526-1555, fax: +62 21
526-1501 with two factories located in Purwakarta and Bandung, West
Java.

-- PT. SK Keris (Keris),established in 1991 as a joint venture
company between Korean SK Group and Indonesian Batik Keris Group,
produces polyester filament yarn (PFY),Chip, and PET Resin. Keris'
headquarters and factory are located in Serpong-Tangerang. Keris
commenced commercial production in 1993 with PFY capacity of 66,789
thousand pounds per annum. At present the company has capacity to
produce 341,992 PFY thousand pounds per annum.

-- PT. Poly Fiber Industry (PFI) is an extensive fully integrated
polyester polymerization chip and yarn manufacturing facility based
in Bandung. The plant features continuous production of polyester
polymer using Pure Terephthalic Acid (PTA) and Ethylene Glycol (EG)
with annual production capacity of 193,124.9 thousand pounds in


polyester filament yarn and polyester textured yarn. The company is
located at Jl. Raya Rancaekek km 19, No. 28, Cipacing, Kabupaten
Sumedang, Bandung, West Java. Tel: +62 22 779-8888, fax: +62 22
779-8268.

-- PT. Central Filatama Mills/Central Georgette Nusantara (Central)
produces polyester filament yarn and polyester textured yarn.
Located at Jl. Cibaligo Km. 1.7, Cimahi 40535, Bandung, Indonesia.
Tel: +62 22 604-0909, fax: +62 22 603-1906.

-- PT. Mutu Gading Tekstil (Mutu),established in 1996, has a
current polyester production capacity of 28,571.9 thousand pounds
per annum. Its products include polyester textured yarn, polyester
filament fully oriented yarn, cationic dyeable textured yarn,
shrinkage peach skin yarn and high module low shrinkage yarn.
Mutu's factory is located at Jl. Solo - Purwodadi Km.11, Godangrejo,
Karanganyar 57773, Central Java, Indonesia. Mutu's headquarter is
located at Wisma 46 Kota BNI, 12/F, Suite 1208, Jl. Jend. Sudirman
Kav. 1, Jakarta, Indonesia. Tel/fax: +62 21 572-2110/572-2107.

-- PT. Kahatex (Kahatex),established in 1979, has grown to a large
textile complex sprawling over manufacturing sites at Cijerah,
Bandung and Ranca-ekek with an area of about 150 hectares. The
company is fully integrated from fibers, to spinning mills, to
fabrics. It manufactures garments, sweaters, socks, and blankets
for international buyers. Currently the company is a major supplier
for Indonesia's textile sector. Kahatex is located at KM 23,
Jl.Raya Rancaekek, Sumedang, West Java, Indonesia. Tel: +62 22
779-8060, fax: +62 22 779-8063.
PASCOE