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Aluminum extruding industry.

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Aluminum extruding industry has expanded in the past several years with the revival of property industry, which is the main consumer of extruded aluminum. Around 40% of extruded aluminum is used by property sector. The remaining 60% is used by other industries such as household equipment, automotive and electronic goods industries.

Extruded aluminum is used in property industry for light structure such as curtail cur·tail  
tr.v. cur·tailed, cur·tail·ing, cur·tails
To cut short or reduce. See Synonyms at shorten.

[Middle English curtailen, to restrict
 wall, doors, windows of buildings like apartments, office buildings and housing.

High demand comes when the price of extruded aluminum is rising especially in urban areas. The price of extruded aluminum in the past year has increased five times by an average of 5%.

The increase in the price of extruded aluminum followed the rise in the price of aluminum in international market. The country still imports most of the basic material of extruded aluminum.

The price of aluminum has increased in the world market as a result of strong demand from China. In 2008, the prices of aluminum products are expected to remain high as consumption grows faster than production in China. China is in difficulty to increase its aluminum production because of scarcity of bauxite bauxite (bôk`sīt, bŏk`–), mixture of hydrated aluminum oxides usually containing oxides of iron and silicon in varying quantities.  as basic material, supply of which 70% comes from Indonesia.


Extruded aluminum is available in the forms of bars, round tube, rectangular, ovals, trapezoidal, full round bars, half round bars, half round square, and angular.

Extruded aluminum is an intermediate material used widely such as in building construction, for household goods, and furniture, car accessories, electronic goods, curtain walls, doors, window, cupboards, kitchen sets, roof racks, truck carriage, heat sink A material that absorbs heat. Typically made of aluminum, heat sinks are widely used in amplifiers and other electronic devices that build up heat. Small heat sinks are the most economical method for cooling microprocessors and other chips. , etc.

Extruded aluminum is used widely as it is strong but light, rust resistant and is a good heat conductor. The basic material for extruded aluminum is aluminum ingot ingot

Mass of metal cast into a size and shape such as a bar, plate, or sheet convenient to store, transport, and work into a semifinished or finished product. The term also refers to a mold in which metal is so cast.
 generally in the form of billet. In Indonesia, there are two types of aluminum ingot--primary and secondary. Primary aluminum is a pure aluminum produced from alumina alumina (əl`mĭnə) or aluminum oxide, Al2O3, chemical compound with m.p. about 2,000°C; and sp. gr. about 4.0. . Secondary aluminum is produced through recycling of aluminum scraps. The producer of primary aluminum in the country is PT. Indonesia Asahan Aluminium (Inalum).

Process of production

Aluminum extrusion is a process of extruding by forcing aluminum ingot through a die in a desired forms.

There are four phases of aluminum extrusion--heating, pressing, and moulding, drawing and finishing.

There are two types of finishing--anodized finish and powder coating Powder coating is a type of dry coating, which is applied as a free-flowing, dry powder. The main difference between a conventional liquid paint and a powder coating is that the powder coating does not require a solvent to keep the binder and filler parts in a liquid suspension  finish. Powder coating is differentiated into two--dry and wet. Process of anodizing anodizing

Method of coating metal for corrosion resistance, electrical insulation, thermal control, abrasion resistance, sealing, improving paint adhesion, and decorative finishing.
 is by adding Aluprimasan into aluminum to be resistant to scratch, rust, discoloration dis·col·or·a·tion  
a. The act of discoloring.

b. The condition of being discolored.

2. A discolored spot, smudge, or area; a stain.

Noun 1.
 and ultraviolet ray.

Production capacity

Aluminum extruding industry was developed for the first time in the country in the 1970s to follow development of metal industry in the country. Among the first companies operating in extruded aluminum industry is PT. Indal Aluminium Industry (INDAL), which came on stream in 1971. INDAL is the only domestic investment (PMDN PMDN Penanaman Modal Dalam Negeri ) company operating in aluminum extruding industry.

The pioneer in the industry is YKK YKK Yoshida Kogyo Kabushikikaisha (Japanese: Yoshida Company Limited, manufacturer of zippers, etc.)  Alumico (YKK) a foreign investment (PMA PMA (papillary-marginal-attached),
n a system of epidemiologic scoring of periodontal disease devised by Schour and Massler in which the symbols denote the areas involved in gingival inflammation.

PMA Progressive muscular atrophy
) company from Japan. YKK belongs to the YKK Group The YKK Group (YKKグループ Waikeikei Gurūpu  The YKK Group has three divisions including Fastening Product, Architectural Products, and Machine and Engineering divisions. In Indonesia, YKK operates in industry producing fastening products.

Other producer of extruded aluminum is PT. Alakasa Ekstrusindo (Alakasa), which was established in 1972 as a PMA company from Canada that is Aluminum Canada (Alcan).

Alakasa is owned by PT. Alakasa Industrindo, Tbk, which is the parent company of Alakasa. Other subsidiaries of PT. Alakasa Industrindo, Tbk is Alakasa Company Limited located in Hong Kong Hong Kong (hŏng kŏng), Mandarin Xianggang, special administrative region of China, formerly a British crown colony (2005 est. pop. 6,899,000), land area 422 sq mi (1,092 sq km), adjacent to Guangdong prov.  operating in the trade of aluminum basic material.

Later, a number of other PMDN companies invested in the industry. From the 1980s to the 2000s, the number of companies operating in the industry continued to increase. Currently there are at least 16 companies producing extruded aluminum with a total capacity of 155,000 tons per years.

Large producers integrated with downstream industry

Big players in the industry are integrated with other related business units such as producers of basic material, aluminum processing industry, trading companies and aluminum derivative producers. AE is one example of integrated industry, having units in aluminum ingot manufacturing and in trading. Its trading unit Trading unit

The number of shares of a particular security that is used as the acceptable quantity for trading on the exchanges.

trading unit

See unit of trading.
 is PT. Alakasa Company Limited.

PT INDAL aluminum Industry (INDAL) belongs to the Maspion Grup, which has subsidiaries operating in industry using aluminum as basic material such as PT. Alumindo Light Metal Industy Tbk.

PT INDAL is also integrated with downstream industry which produces architectural products such as curtain wall curtain wall

Nonbearing wall of glass, metal, or masonry attached to a building's exterior structural frame. After World War II, low energy costs gave impetus to the concept of the tall building as a glass prism, an idea originally put forth by Le Corbusier and Ludwig Mies
, doors, windows; heat sink, household equipment, etc.

The majority shareholder of INDAL is Husin Investama, which is also the majority shareholder of PT. Alumindo Light Metal Industy Tbk. Husin Investama has a 32% stake in INDAL, and a 36% stake in PT. Alumindo Light Metal Industy, Tbk. PT. Superex Raya (SUPEREX) also has subsidiaries operating in industry producing derivatives of profile aluminum such as ladders, clotheslines, etc, with the brand of Fortune.

Most factories are in Java

Profile aluminum is used widely as substitute for wooden materials for building material and household equipment. Aluminum has superiority in being resistant to fungus and rust, therefore, it is more durable.

Profile aluminum is used mainly in large cities as it is more expensive than wooden material. Nine of 16 producers of extruded aluminum are in Jakarta and Tangerang. Bandung and Surabaya have once each.

Producers of aluminum ingot the basic material for extruded aluminum are PT. Industri Aluminum Indonesia (PT. Inalum) in Asahan, North Sumatra North Sumatra (Indonesian: Sumatera Utara) is a province of Indonesia. Its capital is Medan. Geography and population
The province of North Sumatra stretches across the island of Sumatra between the Indian Ocean and the Strait Malacca.
, which has four producers of extruded aluminum in Tanjung Morawa, Medan.

Basic material mostly imported

Basic material of extruded aluminum is aluminum ingot or billet, mostly imported such as from Australia and India.

The country still depends largely on import for ingot as the country has only one producer of aluminum ingot that is PT. Indonesia Asahan Aluminum (PT. Inalum), with an annual production capacity of 225,000 tons per year. In addition, the production of Inalum has declined lately. In the first half of 2007, aluminum production of PT Indonesia Asahan Aluminum (Inalum) fell 3.95% to 119,311 tons from 124,216 tons in the same period in 2006. The decline in output was caused by shortage in power supply to heat its 470 ovens in its smelter.

PT. Inalum needs around 440 440 megawat (MW) of power to produce 250,000 tons of aluminum ingot per year.

PT. Inalum cooperates with state-owned electricity company PLN PLN

In currencies, this is the abbreviation for the Polish Zloty.

The currency market, also known as the Foreign Exchange market, is the largest financial market in the world, with a daily average volume of over US $1 trillion.
 to cover its shortage in its power supply from its hydroelectric plant especially during peak load period.

Meanwhile, ingot requirement grows by 17.2% per year on the average in 20052009, faster than production growth of 7% per year. Without capacity expansion, the country's dependence on imports for ingot will certainly increase.

Nalco to build aluminum smelter

An investor from India--National Aluminum Company Ltd (Nalco)--which is a state company of that country plans to build an aluminum smelter with a capacity of 500,000 tons per year in Tanjung Aluprima-Aluprima, South Sumatra South Sumatra or Sumatera Selatan is a province of Indonesia. It is on the island of Sumatra, and borders the provinces of Lampung to the south, Bengkulu to the west, and Jambi to the north.  to cost around US$ 3.2 billion. The project includes a coal-fired power plant with a capacity of 3x250 MW using low rank coal of 5,000 Kcal/kg, an aluminum smelter with a capacity of 250,000 tons of aluminum ingot per year in the first phase.

Nalco and the provincial administration have signed a MOU (Minutes Of Usage) A metric used to compute billing and/or statistics for telephone calls or other network use. . A feasibility study "A Feasibility Study" is an episode of the original The Outer Limits television show. It first aired on 13 April, 1964, during the first season. It was remade in 1997 as part of the revived The Outer Limits series with a minor title change.  will take 6 months, process of legal agreement 6 months and preparation for construction 15 months before construction will start.

Under the agreement, the regional administration is to provide a special port with a capacity of 100,000 tons to facilitate supply of coal, and railway transport facility to carry basic material. Alumina, the basic material to produce aluminum ingot will be imported from Andhra Pradesh Andhra Pradesh (än`drə prä`dāsh), state (2001 provisional pop. 75,727,541), 106,052 sq mi (275,608 sq km), SE India, on the Bay of Bengal. The capital is Hyderabad. , India.

The project will need around 1 million tons of alumina per year. The first phase will cost around US$ 1.8 billion to be followed with the second phase to cost around US$ 1.4 billion. The plant will need around 5 million tons of coal to be supplied from Bukit Asam in that province.

Production growing

The country's production of extruded aluminum continued to grow in the past year to 87,000 tons in 2007 from 69,000 tons in the previous year. The increase in production has been recorded by YKK, Indal, Alex, Superex, Makmur Jaya, and Calindo. Indal's production at present is 15,000 tons per year, and that of Makmur Jaya 10,000 tons per year.

The old producer Alakasa produces only 1,500 tons per year as only one of its two machines is in operation with a capacity of 2,800 tons.

Product quality

The quality of extruded aluminum products in the market could be divided into three categories--premium, high and medium. Premium quality is for medium strength structure used by high rise buildings like curtain wall, doors and windows. Among the producers of prime quality extruded aluminum are YKK AP, INDAL, and SUPEREX.

High quality one is for doors and windows as well as ladders. Alex is one of major producer of this type which is used widely in workshops producing aluminum goods such as ladders.

Medium quality extrude extrude /ex·trude/ (ek-strldbomacd´)
1. to force out, or to occupy a position distal to that normally occupied.

2. in dentistry, to occupy a position occlusal to that normally occupied.
 aluminum is used for racks with medium strength such as light racks and clotheslines. Among its producers are CALINDO and ALUMEX.

Exports and imports fluctuating

Exports peaked in 2006, when demand on the domestic market fell as a result of the 150% rise in oil fuel prices late 2005. In 2006, exports grew 9.6% to 15,366 tons from 14,024 tons in 2005 when export already shot up 75%. INDAL, for example, exported 40% of its production of extruded aluminum especially to Japan, the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. , Britain and Italy. CALINDO exported part of its production to Europe, Australia, and Singapore; and YKK AP to Japan. In 2007, demand on the domestic market rose again with the revival of the property sector. Imports in 2007 grew only 0.6% as producers cut their exports to increase supply on the domestic market.

Imports of extruded aluminum contributes only a small part to domestic requirement. Imports rose to around 2,300 tons in 2006 from around 1,400 tons annually in the previous years. In 2007 imports rose further to 2,360 tons.

Domestic Consumption Growing

The property sector uses around 40% of domestic supply of extruded aluminum and the remaining 60% is for household, automotive and electronic sectors. The property sector grew strongly in 2005 resulting in a sharp increase in consumption of extruded aluminum to 44,419 tons from 38,971 tons in 2004. However, the sharp increase in oil fuel prices late 2005 resulted in a slump in 2006 but consumption of extruded aluminum continued to scale up to 55,979 tons. In 2007, the property sector grew further marked by the appearance of new buildings of shopping malls, apartments, and office buildings--all need larger supply of extruded aluminum for light structure such as doors and windows.

The growing trend of minimalism minimalism, schools of contemporary art and music, with their origins in the 1960s, that have emphasized simplicity and objectivity. Minimalism in the Visual Arts
 in housing sector also contributes to an increase in demand for extruded aluminum for doors and window frames. The automotive sector is also a major user of extruded aluminum such as for pedals, roof racks and boxes.

Domestic consumption of extruded aluminum grew from 55,979 tons in 2006 to 84,277 tons in 2007, or an increase of 50.6%.


The country disposes of most of its production of extruded aluminum on the domestic market. INDAL sells 60% of its production on the domestic market. The property sector is the largest user.

The market targets include stockists and large projects. Among the consumers not directly deal with producers are workshops producing aluminum ladders, doors, windows and racks, etc.

Large producers of extruded aluminum like INDAL generally cooperate and deal mainly with large building contractors. Large property projects like Ritz Carltons Hotel, Pacific Place, and JW Marriot have used extruded aluminum from INDAL.

INDAL also exports part of its production such as to Singapore, the Philippines, Taiwan, Hong Kong, Australia, Canada, the United States, Japana, Qatar, China, Vietnam, Sri Lanka Sri Lanka (srē läng`kə) [Sinhalese,=resplendent land], formerly Ceylon, ancient Taprobane, officially Democratic Socialist Republic of Sri Lanka, island republic (2005 est. pop.  and Thailand.


The buyers of extruded aluminum from producers are the end users that require certain specifications. Therefore, distribution of extruded aluminum does not reach retailers such as in the case of other building materials Building materials used in the construction industry to create .

These categories of materials and products are used by and construction project managers to specify the materials and methods used for .
 like cement, tile, etc. Extruded aluminum is not sold at retailer shops such as in building material specialty stores or small shops. Extruded aluminum is distributed to distributors from which to agents.


The prices of extruded aluminum in Indonesia follows the price developments in international market as most of the basic materials are imported. In 2007, the prices of extruded aluminum have increased five times, up 5% each time.

Currently the price is around Rp 50,000 per kg. The price is expected to go up further later this year as world's large producers of aluminum ingot such as China and South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa.  have exhausted their capacity.

In addition, China is facing difficulty in securing the basic material for ingot in the form of bauxite imported mainly or around 70% from Indonesia. Indonesia has restricted export of bauxite.


Competition is tighter in the marjet of extruded aluminum because of growing number of producers. Among major producers with capacity of around 10,000 tons a year using new machines such as CALINDO, AM and ALUMEX could produce more efficiently.

The appearance of the new players caused marketing problem for old producers which have use old machines with smaller capacity like Alakasa, and a number of other companies in Medan.
Producers of  extruded aluminum

Producers                    Capacity      Location        Date of
                            (ton/year)                  establishment

PT. YKK Alumico                 20,000    Tangerang
Indonesia (YKK)
PT. Calindo Damai               18,000    Tangerang     2,005
Sejahtera Abadi
PT. Alexindo (Alex)             15,000    Jakarta       1,983
PT. INDAL Aluminum              20,000    Surabaya      1,971
Industry (INDAL)
PT. Makmur Jaya                 12,000    Jakarta       1,988
Saputra Perkasa
PT. Superex Raya                14,000    Tangerang
PT. Alakasa                     10,000    Jakarta
Ekstrusindo (Alakasa)
PT. Damai Abadi                 10,000    Medan
Aluprima Pacific                 8,000    Jakarta
Industries (Aluprima)
PT. Indo Ekstrusion              5,000    Bandung
PT. Indotecno Multi              4,000    Tanjung       1,995
Industries (Indotecno)                    Morawa,
PT. Sari Logam                   2,000    Medan
Morowa (Sari)
PT. Suntex Prima                 2,000    Medan
Alumex Perkasa Jaya              7,000    Tangerang
PT. Alko Mandiri (Alko)          8,000    Cikupa,       2000
Total                          155,000

Producers                     Status         Brand

PT. YKK Alumico               PMA           YKK AP
Indonesia (YKK)
PT. Calindo Damai                           Cald
Sejahtera Abadi
PT. Alexindo (Alex)           PMDN          Alexindo
PT. INDAL Aluminum            PMDN          INDAL ex
Industry (INDAL)
PT. Makmur Jaya               PMDN          Alumas
Saputra Perkasa
PT. Superex Raya                            Superex
PT. Alakasa                   PMA           Alka
Ekstrusindo (Alakasa)
PT. Damai Abadi
Aluprima Pacific              PMDN          --
Industries (Aluprima)
PT. Indo Ekstrusion
PT. Indotecno Multi
Industries (Indotecno)

PT. Sari Logam
Morowa (Sari)
PT. Suntex Prima
Alumex Perkasa Jaya
PT. Alko Mandiri (Alko)                     Alko


Source: Data Consult

Production of  extruded aluminum


  Year     Production     Growth
  2004         45,500        --
  2005         57,000       25.3
  2006         69,000       21.1
2007 *)        87,000       26.1

Note:*) prognosis

Source: Data Consult

Quality of extruded aluminum

Quality                Uses                      Producers

Premium    High Rise Building (curtain     YKK Alumico, INDAL,
           wall); Architectural product    Superex
           (windows , doors, etc.)

High       Architectural product           Alexindo, Alakasa,
           (windows, doors, etc.)          Damai Abadi, Alko
           strong furniture (ladders,      Mandiri, Makmur Jaya

Medium     Light rack, light cupboards,    Calindo, Alumex
           clotheslines, etc.              Perkasa Jaya

Source: Data Consult

Exports of  extruded aluminum


  Year      Exports     Growth
  2004        7,990         --
  2005       14,024       75.5
  2006       15,366        9.6
 2007*)       5,083      -66.9

Note: *) estimate

Source: Industry ministry, BPS, Data Consult

Imports of extruded aluminum


  Year      Imports     Growth

  2004        1,461         --
  2005        1,443       -1.2
  2006        2,345       62.5
 2007*)       2,360        0.6

Note: *) estimate

Source: Industry ministry, BPS, Data Consult

Indonesia's production, exports, imports and
consumption of extruded aluminum, 2004 - 2007


  Year     Production   Exports   Imports   Consumption   Cons.

  2004        45,500     7,990     1,461        38,971       --
  2005        57,000    14,024     1,443        44,419       14
  2006        69,000    15,366     2,345        55,979       26
2007 *)       87,000     5,083     2,360        84,277       51

Average                                                       30

Note: *) estimate; Source: Data Consult
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Title Annotation:Industry
Publication:Indonesian Commercial Newsletter
Date:Feb 1, 2008
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