Jan 29, 2019

Closing of the flat glass factory F3 furnace in Ancol, Jakarta

In order to relocate the flat glass factory from Ancol to Cikampek, the Company closed the F3 furnace of the flat glass factory with a capacity of 120,000 tons per year, in Ancol, North Jakarta on 29 January 2019.

The reason for closing the F3 furnace of the flat glass factory in Ancol was because the F3 furnace in Ancol had started operating since 1982 and had reached its economic age.

Not only that, the reason for the closure is also to comply with DKI Jakarta Regional Regulation (Perda) No. 1 of 2012 regarding RUTR and Regional Regulation No. 1 of 2014 regarding the RDTR which regulates land use changes at the Company's factory location in Ancol (Jakarta). Based on the regional regulation, the land owned by the Company has undergone a change in designation from industrial and warehousing purposes to office, trade and service zones.

With the closure of the flat glass factory F3 furnace with a capacity of 120,000 tons per year, in Ancol, North Jakarta, the Company's production capacity will be temporarily reduced from 630,000 tons per year to 510,000 tons per year.

However, this capacity will increase again at the end of the first quarter of 2019 to 720,000 tons per year, in line with the planned operation of the C2 Furnace at the Flat glass factory in Cikampek, West Java, which has a production capacity of 210,000 tons per year.

With the closure of the F3 furnace, the Company no longer has a flat glass production facility in Ancol, Jakarta.

The Company's flat glass production facilities are spread across Cikampek, West Java, and Sidoarjo, East Java.