Textile company PT Teijin Indonesia Fiber Corp (TIFICO)is to build a new polyester staple fibre (PSF) production line at a cost of $20m.

Company president Shosaku Yasui said the new facility, to be built some 30 kilometers west of Jakarta in Tangerang, would use the most modern technology.

The facility is expected to come on stream in 2002, increasing the company's production capacity for PSF from 235 to 355 tons a day, Shosaku said.

Japan-based Teijin, one of the world's major producers of polyester fibres, has branches in Indonesia, Thailand, and Mexico with a total production capacity of 700,000 tons a year.

In October, Teijin as the majority shareholder of TIFICO already injected $40m to its subsidiary last month.