Latinusa to raise tinplate output

Latinusa to raise tinplate output

JAKARTA (JP): Tinplate manufacturer PT Pelat Timah Nusantara
(Latinusa) plans to increase production despite a market glut,
according to its president.

Tubagus Sufirman Sunartadirdja said over the weekend that his
company would set up a new factory this year to double the
company's production capacity to 260,000 tons a year.

Tubagus said the new factory would cost between Rp 141 billion
and Rp 165 billion (US$60 million) to build.

He said that Latinusa's output was still below its installed
capacity and far below market demand.

"Latinusa's current capacity of 130,000 tons a year is still
far short of meeting domestic tinplate demand of between 200,000
tons and 250,000 tons a year," he said, adding that Latinusa
produced only 116,000 tons in 1996.

Tubagus complained that the market was not too promising at
present because of an influx of imports.

He said that several foreign tinplate producers sold their
products in Indonesia for less.

"It is hard for us to compete with imported products because
we import most of the raw materials for tinplate production," he
said.

The influx of cheaper imported tinplate has affected
Latinusa's sales. "Our sales volume in 1996 dropped to 112,505
tons from about 135,000 tons in 1995," he said.

But, he said, tighter competition in the local tinplate market
would not affect Latinusa's expansion plan.

"We are going to set new marketing strategies and get support
from Krakatau Steel which will increase its supply of raw
materials for tinplate production to help Latinusa reduce its
reliance on imported raw materials," he said. (04)