SURABAYA, October 10, 2023 – PT Avia Avian Tbk. ("AVIA"), which is the market leader for decorative paints in Indonesia with a total market share reaching more than 23%, currently operates with two large factories located in Sidoarjo with a factory area of 10.5 Hectares and Serang with an area of 3.7 Hectares. AVIA's first factory was established in 1978 in Sidoarjo with a capacity of 213,840 metric tons (MT), while its second factory was established in 1996 in Serang with a total capacity of 72,576 MT. Currently, AVIA is also in the process of building a third factory located in Cirebon with a planned total capacity of 225,000 MT. The construction process for this third factory is planned to be completed in 2025 and will begin operations in early 2026. Currently, AVIA's two factories operate one to two shifts per day with more than 1,500 employees.
One of the things that differentiates AVIA from other paint companies is its vertical integration capability, which is the ability to produce raw materials internally. AVIA began producing resin, a key raw material in the paint manufacturing process, in 1986. Subsequently, in 1992, AVIA also began investing in the production of metal can packaging. Currently, AVIA is able to produce up to 98% of its resin internally. Not only that, approximately 27% of its can packaging, 20% of additives, and 85% of colorants are also produced in-house. This ability to produce raw materials internally naturally reduces AVIA's dependence on suppliers. As an effort to improve operational and environmental performance, AVIA has also obtained various certifications such as ISO 9001 for Quality Management Systems, ISO 14001 for Environmental Management, ISO 45001 for Occupational Health and Safety, ISO 50001 for Energy Management, and ISO 27001 for Information Security. AVIA also has a high commitment to sustainability through the improvement of Environmental, Social, and Governance (ESG) aspects, which means ensuring responsible business operations by paying attention to environmental protection and management. Some of our tangible actions are reflected through the use of solar panels as an alternative renewable energy source in an effort to move towards Clean Energy.
AVIA also remains committed to reducing carbon emissions by replacing diesel forklifts with more environmentally friendly electric forklifts. Not only that, various other efforts are continuously made to ensure long-term business sustainability, including increasing waste recycling rates, reducing hazardous solid waste disposal, reusing industrial wastewater, and so on.
As part of AVIA's commitment to continuously develop various innovative products, in 2020 AVIA inaugurated the Avian Innovation Center (AIC), which is a research, development, and innovation (RDI) center equipped with 11 laboratories and more than 70 qualified chemists. AVIA uses a Laboratory Information Management System (LIMS) that integrates all activities and information performed. Each employee is equipped with an electronic tablet that can be used anywhere and is directly connected to the company database. This is done with the aim of promoting digitalization and sustainability by reducing the use of paper as a medium for communication and data recording.
For information, throughout 2022, AVIA launched 12 products across various product categories. As of the end of the first half of this year, a total of 8 new products have been launched across various architectural solution product categories, including wall paints, marine paints, and wood and iron paints. AVIA will continue to develop diverse innovative products to complement its product portfolio and meet ever-changing market needs.
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Overview of PT Avia Avian Tbk
PT Avia Avian Tbk. was established in 1978 as an integrated paint manufacturing company. Known as Avian Brands. For over 4 decades, Avian Brands has colored the lives of millions of Indonesian families, through a diverse range of products including Sunguard All in One, Supersilk Anti Stain, and Avitex wall paints, No Drop waterproof coating paint, and Avian wood & iron paints.
Listed on the Indonesia Stock Exchange (IDX) on December 8, 2021, with stock code (IDX: AVIA), AVIA is the market leader in the decorative paint and coatings industry in Indonesia, with a total market share of more than 23%, based on 2020 sales of decorative paint and coating products, according to Frost & Sullivan. AVIA has strong manufacturing capacity and capabilities through its manufacturing facilities in Sidoarjo and Serang, as well as the widest distribution network in Indonesia, comprising 114 self-owned distribution centers, 13 self-owned mini distribution centers, and 37 third-party distribution centers as of the end of the first half of 2023. All these distribution centers serve more than 56,000 building material stores throughout Indonesia. Since 2020, Avian Brands has had the first research, development, and innovation center in Indonesia named Avian Innovation Center (AIC), covering an area of 5,000 square meters, and as a form of Avian Brands' commitment to environmental management, occupational health and safety, and GCG (Good Corporate Governance) in accordance with international standards, Avian Brands has successfully obtained and implemented ISO 14001:2015 (Environmental Management), ISO 45001:2018 (Occupational Health and Safety Management System), ISO 50001:2018 (Energy Management System), as well as 26000:2010 (Guidelines regarding GCG, social responsibility, Social Harassment, and Gender Equality). The presence of Avian Brands aims to provide cutting-edge benefits and contribute to coloring Indonesia.
