PT Asia Pacific Fibers Lays Off 1,802 Employees Amid Plant Shutdown
PT Asia Pacific Fibers Tbk, one of Indonesia’s leading polyester manufacturers, has laid off approximately 1,802 employees following the temporary closure of its polyester and fiber manufacturing plant in Karawang in November 2024. The company cited severe financial strain and deteriorating market conditions as key reasons for the move.
According to the company’s 2024 Annual Report, operations at the Karawang plant were halted due to prolonged delays in securing debt restructuring, a significant cash crunch, and a steep decline in global and domestic demand for polyester products. The shutdown also forced the company’s filament yarn facility in Semarang to cut operations down to just 30% of its capacity.
The layoffs come in the wake of what has been described as a turbulent year for Indonesia’s textile and polyester sectors, marked by factory closures, declining exports, and intense competition from low-cost imports, especially from China. The report noted that these challenges led to a 34% year-on-year drop in sales, with revenues falling to US$ 190.15 million in 2024 from US$ 288.55 million in 2023. The company also reported an EBITDA loss of US$ 7.67 million for the year.
In a message to stakeholders, President Director V. Ravi Shankar expressed deep regret over the layoffs, thanking the affected employees for their service and extending best wishes for their future endeavors.
PT Asia Pacific Fibers emphasized that its continued operation hinges on the successful resolution of a long-pending secured debt restructuring and access to new working capital facilities.
The management is currently in renewed discussions with the Indonesian Ministry of Finance and other creditors to reach a mutually agreeable solution.
