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)