PT Inalum reaches full capacity of 225,000 tons

JAKARTA (JP): The Indonesian-Japanese smelting company PT Indonesia Asahan Aluminum (Inalum) in North Sumatra is now producing at its full capacity of 225,000 tons per annum, an official said yesterday.

"The power supply from our power station is not a problem anymore because of the stability of Lake Toba's water level," A.R. Soehoed, chairman of the Asahan Development Authority, told reporters after a meeting with President Soeharto here.

He said that Inalum's production decreased a few years ago to below 80 percent, or approximately 180,000 tons, due to a decline in power supply, but it increased last year to about 200,000 tons and to full capacity now.

Soehoed said that Inalum will export 165,000 tons of its production this year and the remaining 60,000 tons will be sold on the domestic market.

Increase

He added that the international aluminum price increased from US$1,400 per ton last year to US$1,800 per ton this year.

"The price, though not as high as we expected, is still much better than last year," he said.

Inalum has been beset with financial problems since its start- up in 1982. When the smelter began production at its full capacity of 225,000 tons in 1984, the international aluminum price collapsed to $1,000 from as high as $2,000 per ton in 1980.

He said that Inalum is now building a downstream aluminum plant near the smelter to produce aluminum alloys.

Soehoed said the new plant will be managed by a new company called PT Asahan Aluminum Alloys but he did not give details on its shareholders, investments or capacity.

"We hope that the new plant, whose construction is now 80 percent completed, will start production early next year," he added. (04)