PT PAL lands $250m in contracts

PT PAL lands $250m in contracts

SURABAYA, East Java (JP): State-owned shipbuilder PT PAL
announced on Monday it had secured Rp 2.1 trillion (US$250
million) in orders for ships and power-generation equipment for
delivery through the year 2000.

Company president Adwin H. Suryohadiprodjo said here on Monday
that 30 percent of the orders were from overseas companies.

"International demand for ships has dropped by 50 percent in
the last two years. To maintain our performance, we will focus
our efforts on producing small and medium-size ships which are
not produced by major international shipbuilders," Adwin said.

"We will also try to be more competitive by improving our
quality, cutting our costs, setting lower prices, and
guaranteeing on-time delivery."

He said the company for the time being would not bid on
tenders for big vessels because it would be hard to beat Japanese
and South Korean shipbuilders, which respectively control 33
percent and 31 percent of the world's large ship market.

Aside from shipbuilding, Adwin said, PAL also gave priority to
general engineering, especially in production of power generation
equipment for electricity, oil and gas industry.

Adwin said the company's general engineering products had
entered the international market since 1997 through its
partnerships with the United States giant General Electric and
Japan's Mitsubishi Heavy Industries, Co.

"This nonshipping business has greatly helped us in
maintaining our performance since 1986," Adwin said.

PAL projected total sales of Rp 460 billion this year, with a
net profit of Rp 38 billion.

He added that as of November, the company had booked Rp 384
billion in sales and Rp 25 billion in net profit.

"We have set a sales target of Rp 760 billion for next year."

PAL is to deliver on Tuesday one dry cargo vessel to
Munchmeyer Petersen of Germany, a 250-megawatt stator frame
generator to General Electric Power System and an express patrol
boat to the National Police. (gis/nur)