Polaris Uno Completes New Factory in Indonesia... 'Rebound' with Polaris Office Group Synergy

Polaris Uno announced on the 7th that it has completed a new yarn production plant in the Kendal Industrial Park (KIP) in Indonesia.

The new plant covers a land area of 15,994㎡ and a factory area of 7,700㎡. To proactively respond to customer needs and increased sales, the company plans to gradually expand its production capacity (CAPA) from the existing annual 1,190 tons to a total of 5,200 tons per year. The Kendal Industrial Park is a Special Economic Zone (SEZ) designated by the Indonesian government, offering various benefits such as tax and employment incentives, which are expected to serve as a favorable foothold for market entry.

The company stated, “Our customers are accelerating the relocation of factories to Indonesia due to labor costs and geographical conditions,” adding, “We will enhance production efficiency and increase market share through aggressive capacity expansion and strengthened cooperation with local customers.”

Polaris Uno owns Unofiber, the leading yarn company for wigs in the African region, as a local subsidiary in South Africa. This new plant marks the first since the investment in South Africa over 11 years ago. The company plans to timely supply products that meet the needs of the growing population of Black women worldwide, thereby expanding its market share.

Meanwhile, Polaris Uno disclosed yesterday that it recorded sales of 78.1 billion KRW and operating profit of 5.5 billion KRW last year. Net profit for the same period increased by 106% year-on-year to 7.6 billion KRW.

The increase in net profit was driven by higher financial income and a decrease in fair value losses on financial assets. The rise in the valuation of Polaris Office shares held by Polaris Uno also had an impact. Sales and operating profit slightly decreased compared to the previous year due to exchange rate effects and demand contraction caused by the global economic downturn compared to 2022. As of the closing price on the 6th, the valuation gain on Polaris Office shares held by Polaris Uno is approximately 22 billion KRW.

A company representative said, “The demand that surged explosively during the COVID-19 period is normalizing,” and added, “We expect that stable operation of the Indonesian plant will lead to a revaluation of corporate value and a new leap forward through expanded production capacity.”

They emphasized, “We will strive to ensure that the rising valuation of Polaris Office shares, which has been trending upward recently, along with the synergy of Polaris Office group companies, is reflected in corporate and shareholder value.”