Profile Gunawan group.
The Gunawan Group was established by the Gunawan family, Gwie Gunadi Gunawan and Gwie Gunanto Gunawan, in East Java. The Gunawan Steel Group has 3 subsidiaries operating in the steel industry producing steel plates, concrete reinforcing iron and round bars.
The Gunawan Group started steel business in 1989. After the monetary crisis of 1997/1998, many companies were beset by non performing debts including the Gunawan Group.
In 1998, three companies of the Gunawan Group PT Gunawan Dian Steel Pipe (GDSP), Gunawan Iron Steel (GIS) and Gunawan Dianjaya Steel (GDS) had a total non performing debts of Rp 1.45 trillion to banks. The debts were then taken over by the banking rescue ageny Badan Penyehatan Perbankan Nasional (BPPN). Later BPPN sold the debt of the Gunawan Group through credit asset sales program (PPAK) to the public. BPPN's credit assets in GDSP (based in Surabaya) and GIS (in Malaysia) were acquired by PT Bina Kreasi Primaniagatama (BKP). The credit assets in GIS were valued at Rp 234 billion were acquire dby BKP at a price of only Rp 14 billion. BKP also acquired the credit assets with a book value of Rp 453 billion in GDSP at a price of less than Rp 27 billion.
Currently two other subsidiaries of the Gunawan Group, PT. Jaya Pari Steel and PT. Beton Jaya Manunggal have become public companies. It was reported that foreign investors have indicated interest in acquiring Jaya Pari Steel, but there has been no confirmation of the report. Another subsidiary PT. Gunawan Dianjaya Steel is expected to soon launch initial public offering (IPO).
PT, Gunawan Dianjaya Steel
PT, Gunawan Dianjaya Steel (GDS) was established in 1989. GDS started business in the steel industry by acquiring a hot rolled coil (HRC) plant from United of Germany. In 1991, construction of the factory which is located in the Margomulyo industrial estate in Surabaya was completed.
In 1998, GDS expanded its rehealing furnace. In 2000, GDS started producing high strength steel plate used in ship building industry, making it the first producer of that type of steel in Indonesia.
Currently GDS has a production capacity of 350,000 tons of hot rolled plate (HR Plate) a year. The types of steel plate produced by GDS include one for general purposes, boiler and pressure vessel and ship construction. The company uses imported basic materials. Around 80% of its produciton is exported to Europe.
GDS's customers are mainly shipbuilding companies including Colombo Dockyard United, Jurong Shipyard Pte. Ltd, Kepper Shipyard Pte. Ltd., Meyer Werff, PT. Dok Perkaplan Kodja Bahari, PT. Dok Perkapalan Surabaya, PT. PAL Indonesia, Sembawang Shipyard, etc.
PT, Jaya Pari Steel Tbk
PT, Jaya Pari Steel (JPS) was established in 1972. In 1989 JPS became a public company. In 2002, JPS sold 20 million shares on behalf of PT. GDS and 9,756,000 shares on behalf of PT. Baja Inti Manunggal. The shares were bought by Tetsuro Okano from Japan. Currently Tetsuro Okano took the position of director in JPS management board.
Its authorized capital was Rp 75 billion. It is now 15.5% owned by Vihara Limited and 19.94% by International Magnificent Fortune, 17.22% by GM Iron & Steel Ltd, 13.33% by Tetsuro Okano, 2.2% by Gwie Gunawan and 16.85% by investing public.
The integrated steel factory has an annual production capacity of 100,000 tons of HR Plate. In 2007 it succeeded in increasing its production to 70,000 tons. JPS uses imported slabs as basic material mainly from Ukraine. JPS also imports slabs from other countries including China and Brazil. See the following table.
In 2007, the company reported sales at Rp 432.8 billion with a net profit of Rp 41.5 billion up from 2006's sales of Rp 340.2 billion and net profit of Rp 26.7 billion. Its sales included exports making up 10% such as to Middle East and Singapore.
In the first five months of 2008, Jaya Pari Steel reported sales at Rp467 billion, or 66.71% of its whole year's target of Rp700 billion. The increase in sales value was attributable mainly to 29% surge in the sales of steel plates. The company also is set to chalk up an increase in net profit. to Rp75 billion with the rise in sales and prices in 2008.
President PT Jaya Pari Steel Tbk, Gwie Gunadi Gunawan said the 29% increase in the price of steel plate contributed mainly to larger sales value in the first five months of 2008.
PT. Beton Jaya Manunggal Tbk
PT. Beton Jaya Manunggal (BM), a producer of concrete reinforcing iron, became a public company in 2001. The PMDN company has an annual production capacity of 12,000 tons of round bars. In the first five months of this year, BM reported sales including 8,285 tons of concrete reinforcing iron, 3,991 tons of waste plate and 846 tons of iron scrap.
BM has recorded improvement in financial performance. In 2007 it posted sales at Rp 115.2 billion and in the first five months of 2008 its sales shot up in value by more than 100% on a surge in the prices of concrete reinforcing iron and waste plates. In the first half of 2008 its sales were estimated at Rp 90.8 billion.
Members of the Gunawan group:
1. 1.Gunawan Dianjaya Steel, PT (Flat Steel Industry)
2. Jaya Pari Steel, PT (Flat Steel Industry)
3. Beton Jaya Manunggal, PT (Round bars Industry)
Table--1 GDS's production capacity and product specifications Production capacity Product specifications tons / ear a. Steel plates for general purposes: Low carbon structural steel plate High strength low alloy structural steel plate b. Steel plates for boilers and pressure 350,000 vessel c. Steel plates for shipbuilding --Hull structural steel plate (mild steel) --High strength Hull Structural Steel Plate (High Tensile Steel) Source : Gunawan Dianjaya Steel Table--2 Types of products and capacity Types Capacity (tons/year) HR Plate 100,000 Concrete reinforcing iron 25,000 Source : Industry ministry Gunawan Group Parent company PT, Gunawan Dianjaya Steel Address JI. Margomulyo 29-A, City Suraba a 60183, East Java Phone's (031) 7490598, 7490570 Fax, (031) 7482109, 7481940 E-mail email@example.com Website www.gunawansteel.com Number of companies 3 Companies Lines of business --Flat Steel Industy --Round bars industy --Round Bar Industy Source: GDS Financial Highlights PT. Jaya Pari Steel Tbk, (in Rp million) Description 2007 2006 (31st Dec) (31st Sep) ASSETS a. Current Assets 248,084 166,940 b. Non Current Assets 20,706 22,444 Total Assets 268,790 189,384 LIABILITIES a. Current Liabilities 42,403 4,860 b. Non Current Liability 5,773 5,477 c. Equity 220,614 179,047 Total Liabilities + Equity 268,790 189,384 REVENUES a. Revenue 432,808 340,210 b. Net Profit 41,566 26,796 Source : Jaya Pari Steel