Indonesian textile company PT Asia Pacific Fibers Tbk (POLY) announced the permanent closure of its factory in Karawang. The chemical and fiber production units at the factory had been suspended since November 1, 2024, and this closure is now permanent. Reasons for the closure include weak demand for industrial products in domestic and international markets, global overcapacity, rising tariffs on exports to the United States, and increasing raw material prices; unstable domestic policies such as the implementation of anti-dumping duties and revisions to import regulations that did not meet expectations; the factory being idle for more than 6 months, making equipment restart technically and commercially infeasible with high maintenance costs; and debt restructuring negotiations with the Ministry of Finance taking longer than expected without a final agreement reached. In the short term, this will lead to a decline in sales revenue in 2025 and beyond, requiring the company to revise its financial forecasts. The company's focus is shifting to the Kaliwungu factory, with plans to adjust product mix and supporting resources; continuing debt restructuring efforts, seeking agreements with creditors and investors to secure funding for capacity improvement; and calling on relevant parties and stakeholders to provide support and cooperation to ensure the long-term operation of the enterprise.
Indonesian textile company PT Asia Pacific Fibers Tbk (POLY) announced the permanent closure of its factory in Karawang. The chemical and fiber production units at the factory had been suspended since November 1, 2024, and this closure is now permanent. Reasons for the closure include weak demand for industrial products in domestic and international markets, global overcapacity, rising tariffs on exports to the United States, and increasing raw material prices; unstable domestic policies such as the implementation of anti-dumping duties and revisions to import regulations that did not meet expectations; the factory being idle for more than 6 months, making equipment restart technically and commercially infeasible with high maintenance costs; and debt restructuring negotiations with the Ministry of Finance taking longer than expected without a final agreement reached. In the short term, this will lead to a decline in sales revenue in 2025 and beyond, requiring the company to revise its financial forecasts. The company's focus is shifting to the Kaliwungu factory, with plans to adjust product mix and supporting resources; continuing debt restructuring efforts, seeking agreements with creditors and investors to secure funding for capacity improvement; and calling on relevant parties and stakeholders to provide support and cooperation to ensure the long-term operation of the enterprise.