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Gunung Garuda Group.

Key Issues

The embryo of the Gunung Garuda Group, also known as Gunung Steel Group, is PT. Gunung Garuda, which was established in 1986. The company was founded by three brothers of ethnic Chinese from Medan, North Sumatra. They were Djamaludin, Kamarudin and Chairudin and their family members--Fihatati Taniwan and Suliana Taniwan.

The core business of the Gunung Garuda Group is steel industry producing heavy steel profile. The group dominates the market of heavy steel profile in the country.

In 2005, GG was named by the government to carry out The Model Project for High Performance Industrial Furnace or high performance industrial furnace. The US$ 4 million project is a grant from New Energy and Industrial Technology Development Organization (NEDO) of Japan.

Currently, Gunung Steel Group has 4 subsidiaries all operating in steel industry. Its factories are located in the same location in Cikarang, Bekasi of West Java over a 150 hectare plot of land.

Focus on steel industry

Heavy Steel Profile

PT. Gunung Garuda (GG) was established in 1986 operating in steel industry. The company produces heavy steel profile, now with an annual production capacity of 300,000 tons. GG is a the first company producing structural steel products in Southeast Asia. Now it has two units of factory in Cibitung, Bekasi with a total annual production capacity of Rp 158.6 billion.

GG has a division of Engineering Service Center (ESC) handling steel structure engineering for various types of steel structure--from designs to fabrication. The. ESC division was established in 1997, to serve customers to prepare pre fabrication of steel structure. ESC provides standard components built by GG under the concept of Pre-Engineered Building (PEB), which is supported by the availability of ready for use basic material, efficient machines and high quality products.

PT Gunung Garuda has exported PEB products to a number of countries in Asia. PEB products begin to gain market in the country. In 2005, GG was named by the government to implement a project of The Model Project for High Performance Industrial Furnace or high performance industrial furnace. The project was a grant from New Energy and Industrial Technology Development Organization (NEDO) of Japan.

The project was aimed mainly at changing the burner of conventional system with a new system namely Regenerative Burner System in the reheating furnace, which functions to reuse waste gas, which still has potential energy (sensible heat of waste gas), therefore, it is energy efficient. That model of technology could save up to 30% of gas as fuel consumption.

This model is aimed at energy conservation in reheating semi finished steel material before being processed finished products of various types of profile such as H-Beam and IWF-Beam. The models are expected to improve the competitive edge of the country's steel industry and at the same time preserve the environment with less emission.

NEDO of Japan has named Nippon Steel Corporation (NSC) to carry out the project and the government of Indonesia is represented by GG, which has he experience in handling Regenerative Burner System. The project cost around US$ 4 million. NEDO finances 75% in the form of goods or machines and the remaining 25% in the form of local good and service procurement by GG.

Starting August, 2005, NSC sent goods or machines and equipment to Indonesia, and GG took its part in the preparations by stopping the operation of its reheating furnace after all goods had arrived in 60 days to start replacing, installation and running test. In this project, energy conservation and preservation of the environment do not require changing all equipment. It needs only to use additional equipment of regenerative burner system in the reheating furnace. Therefore, it saves more investment and fuel in significant amount.

Another subsidiary is PT. Gunung Raja Paksi (GRP), which was established in 1990. Originally this company was named PT. Gunung Naga Mas, before its was changed with PT. GRP, which produces hot rolled steel plate (HRC/Plate).

Currently GRP has an annual production capacity of 600 tons of HRC/Plate. GRP has invested Rp 380 billion until now The company has performed well with factory operating at 82% of its installed capacity.

In 2002, GRP received international recognition for its steel quality from Germanischer Lloyds Pruflabor GmbH, from Germany. The German company recommended GRP as a supplier of steel products.

Steel products

PT. Gunung Gahapi Bahara (GGB) was established in 1998. GGB operates in high quality steel construction equipment. It uses high technology to produce wide size range and high tonnage per coil. Few companies including GGB could supply these types of product in Southeast Asia.

Among steel products produced by GGB are anchor bar, square bar, wire nail, round & deformed bar, wire mesh and wire rod. Japan Industrial Standard (JIS) has recognized the quality of all of its steel products.

Hot dip galvanizing

PT. Bukit Terang Paksi Galvanizing (BTPG) was established in 1997 as a joint venture between GG and Industrial Galvanizers Corporation (IGC) of Australia, which has a number of branches in Southeast Asia.

BTPG operates in hot dip galvanizing industry with an annual production capacity of 40,000 tons. Its factory is located in Cibitung, Bekasi, over a 300,000 m2 plot of land.

The company uses two 2 unit of overhead cranes, for loading and unloading of materials at factory and one unit of gantry care out.

In addition to producing galvanized steel, BTPG offers consultancy service in the corrosion management. The service is offered through seminars, technical meetings and training. It has served customers in the construction sector.

BTPG exports part of its production to Asian countries such as Hong Kong and China and Europe such as Russia. Steel Service Centre (SSC)

The GG group has a steel service center offering service for steel manufacturing and fabrication with computerized machines such as CNC sawing machines and CNC drilling. SSC offers to handle cutting, punching, bending machines, machines for galvanizing and shot blasting.

Conclusion

The Gunung Garuda Group has fared well amid the tight competition in steel. The success is attributable to professional management that maintains good quality of its products that are quite competitive in international market. Its products have been exported to a number of countries such as Hong Kong, China and Russia.

The production facilities of the Gunung Garuda Group are located in the same area in Cibitung to keep high efficiency. Its HRC/Plate, heavy steel profile, steel product, and hot dip galvanizing factories as well as its steel service centre are all located in that area.

In HRC/plate industry GRP is facing competition mainly from the country's largest steel maker state-owned PT. Krakatau Steel (KS).

In hot dip galvanizing, BTPG offers integrated services. Apart from producing galvanized steel, BTPG offers consultancy services in corrosion management to reduce damage by corrosion to steel products. It also offers consultancy service and training service and has organized seminars on corrosion management.
Table

Types of steel products produced in the country

Description Diameter Standard

Anchor Bar 12 mm--25 mm JIS G 3112
 JIS G 3191

Square Bar 8 mm--25 mm JIS G 3101

Wire Nail Size : 1,5 inches JIS G 3505
 --5 inches SNI

Round & Deformed Bar DB 10 mm--25 mm JIS G 3112
 RB 8 mm--25 mm JIS G 3191

Wire Mesh 4 mm--10 mm JIS G 3101
Wire Rod 5,4 mm--12 mm JIS G 3505

Source: GGB
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Publication:Indonesian Commercial Newsletter
Article Type:Company overview
Date:Jul 1, 2006
Words:1227
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