Daya Sakti stops operation

PT Daya Sakti Unggul Corporindo (DSUC) Tbk terminates all operational activities of its wood processing plants in Banjarmasin, South Kalimantan province. The company will also fire all its workers there. 

DSUC said it maintains the operation of plants in Java and has no plan to shut them down. But the closure of Banjarmasin units will cost the company a 90% drop in sales revenue. DSUC said the average price of its products reached its lowest level in years at US$480 per m3 (C&F) this year and sees no sign of improvement. "Meanwhile raw material prices have increased significantly, especially since the start of Q2 2009," DSUC said.

DSUC controls PT Trikorindotama Wana Karya, which operates the facilities in Banjarmasin. Early this month, workers filed a report to local legislative council (DPRD). Workers claimed that TWK forced them to resign with compensation well below the standard.

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