Prospects of polyester fiber industry after abolition of textile quota.
The country's textile industry will face a new era with the abolition of the trade quota system Quota System can refer to:
polyester - any of numerous synthetic resins; they are light and strong and weather resistant in the market of which the country hopes to be more competitive. The country sees little chance of gaining much in the market of textiles and garments with powerful rivals like China, India and South Korea.
Amid the opportunity, there is great challenge faced by polyester fiber producers including Indonesia with allegations of dumping and subsidy and imposition of protective measure under the safeguard mechanism allowed by WTO. The United States and the European Union, which have been the main quota market for Indonesian textiles and garments are feared to use the three measures to curb imports.
Textiles and textile products (TPT TPT Transport
TPT Trumpet (music scores)
TPT The Physics Teacher
TPT Tara Palmer-Tomkinson (UK celebrity)
TPT Trailer Park Trash
TPT Temporary Part Time
TPT Thermodynamic Perturbation Theory ) have been the largest export earners for the country outside oil and gas. TPT industry is more important still as it is more labor intensive Labor Intensive
A process or industry that requires large amounts of human effort to produce goods.
A good example is the hospitality industry (hotels, restaurants, etc), they are considered to be very people-oriented.
See also: Capital Intensive, Trading Dollars involving small and medium businesses. TPT industry will remain vital for the country's economic recovery.
According to according to
1. As stated or indicated by; on the authority of: according to historians.
2. In keeping with: according to instructions.
3. the Textile Association (API), the industry has a workforce of 1.2 million. In the first 8 months of this year, TPT exports were valued at US$ 4.8 billion--down 1.4% from US$ 4.9 billion in the same period last year. According to the International Textile & Clothing Bureau (ITCP ITCP Incubadora Tecnológica de Cooperativas Populares
ITCP Information Technology and Creative Practices
ITCP Information Technology Contingency Plan
ITCP Indirect Transmission Control Protocol
ITCP Information Technology Consultancy & Provision (UK) ), world's TPT trade is predicted to rise to US$ 596 billion annually after the abolition of the quota system from US$ 353 billion at present. Developing nations will account for US$ 368 billion including US$ 127 billion in textiles and US$ 241 billion in textile products or garments.
Indonesia, which has expressed fear of serious decline of its textile industry, could gain from its large availability of polyester fiber basic materials after the abolition of the quota system. The resumption of the construction of the aromatic center of Trans Pacific Petrochemical Indotama (TPPI TPPI Time Proportional Phase Increment
TPPI Inverse of Tangential proper part (RCC Spatial Logic)
TPPI TEFA Pedagogical Perspectives Interview ) in Tuban, East Java East Java (Indonesian: Jawa Timur) is a province of Indonesia. It is located on the eastern part of the island of Java and also includes neighboring Madura and Bawean islands. , therefore, is important.
The aromatic plant project will produce 500,000 tons of paraxylene a year. It will strengthen the country's textile industry in the upstream sector encouraging development of spinning, weaving and knitting industries and down stream sector including dyeing/finishing, garment making and ready made clothe industries.
The country have a number of companies operating in the upstream sector of textile industries five companies in purified terephthalic acid Terephthalic acid is one isomer of the three phthalic acids. It finds important use as a commodity chemical, principally as a starting compound for the manufacture of polyester (specifically PET), used in clothing and to make plastic bottles. (PTA PTA or parent-teacher association: see parent education. ) industry, one in ethylene glycol ethylene glycol: see glycol.
Simplest member of the glycol family, also called 1,2-ethanediol (HOCH2CH2OH). It is a colourless, oily liquid with a mild odour and sweet taste. industry, three in rayon fiber industry, two in nylon filament filament, in astronomy: see chromosphere. industry and 18 in polyester fiber industry. The country could emerge as a powerful textile and garment supplier to the world market by using its large factories to produce textiles and garments from rayon and other synthetic fibers, which are easily available in the country.
The country, therefore, has no cause for much concern with the abolition of the quota as it still has comparative advantage over other countries.
Description of product
Polyester is a chemical widely used as a feedstock in the production of synthetic fiber Noun 1. synthetic fiber - fiber created from natural materials or by chemical processes
fiber, fibre - a slender and greatly elongated substance capable of being spun into yarn
acrylic, acrylic fiber - polymerized from acrylonitrile . By forms, there are five types of polyester--solution/dispersion, liquid, granule granule, in astronomy: see photosphere. , chip, etc. In Indonesia, polyester in chip is used mainly to feed polyester fiber industry. Other types of synthetic fibers are made from acrylic, rayon, and cotton. This report, however, concerns only polyester as synthetic fiber basic material.
Polyester is produced through a reaction between ethylene glycol (EG), an olefin olefin (ō`ləfĭn) or olefin series: see alkene.
Any unsaturated hydrocarbon containing one or more pairs of carbon atoms linked by a double bond (see product, and purified terephthalic acid (PTA), an aromatic product. Through a process of polymerization polymerization
Any process in which monomers combine chemically to produce a polymer. The monomer molecules—which in the polymer usually number from at least 100 to many thousands—may or may not all be the same. , the reaction will turn out polyester chips. The chip is later processed into polyester fiber.
There are two known types of polyester fibers namely polyester staple fibre Noun 1. staple fibre - a natural fiber (raw cotton, wool, hemp, flax) that can be twisted to form yarn; "staple fibers vary widely in length"
staple fiber, staple
natural fiber, natural fibre - fiber derived from plants or animals (PSF), and polyester filament yarn (PFY PFY Pimply Faced Youth
PFY Previous Fiscal Year
PFY Pride For Youth ). Polyester staple fiber Noun 1. staple fiber - a natural fiber (raw cotton, wool, hemp, flax) that can be twisted to form yarn; "staple fibers vary widely in length"
staple fibre, staple
natural fiber, natural fibre - fiber derived from plants or animals is produced to resemble the characteristic of cotton that could absorb heat that PSF is used widely as a feedstock for spun yard. PFY is used as feedstock for smooth linen that need soft and long fibers.
Polyester fiber is resistant to heat and chemicals. Polyester fiber is used as basic material for textiles and plastic bottle. Polyester fiber is also used as a basic material to produce dacron and terylene Terylene
Trademark a synthetic polyester fibre or fabric
Noun 1. Terylene - a kind of polyester fabric
polyester - any of a large class of synthetic fabrics . It is processed to produce film layer known as melinex and mylar. The use of polyester fiber in laboratory is as coating material coating material,
n a biologically acceptable, usually porous nonmetal applied over the surface of a metallic implant with the expectation that tissue ingrowth will occur in the pores. Often a carbon polymer or ceramic substance. . Polyester fiber is also used as a material in the production of parachutes, tire cord and safety belts.
Process of production
Previously production of polyester synthetic fiber was made through a reaction between DMT See DSL. (dimethyl terephthalate Dimethyl terephthalate (DMT) is an ester of terephthalic acid and methanol and is used in the production of polyesters, including polyethylene terephthalate and polytrimethylene terephthalate. ) and EG (ethylene glycol), but now a new basic material is used instead of DMT namely PTA (purified terephthalic acid), which is considered more efficient. Now, almost all producers of polyester fiber use PTA and EG as the basic materials.
There are two types of process to produce polyester synthetic fiber--through batch process and continuous process. Under batch process the process of producing monomer and polymerization is by phases from esterification es·ter·i·fi·ca·tion
A chemical reaction resulting in the formation of at least one ester product.
es·teri·fied adj. to be followed with polymerization. Another process is continuous process from estertification to polymerization.
The process of producing filament could be through direct spinning, namely molten polyester as a product of polymerization directly pumped into spinning beam and through gear pump A Gear pump uses the meshing of gears to pump fluid by displacement. They are one of the most common types of pumps for hydraulic fluid power applications. Gear pumps however are also widely used in chemical installations to pump fluid with a certain viscosity. sprayed through spinneret spin·ner·et
1. Any of various tubular structures from which spiders and certain insect larvae, such as silkworms, secrete the silk threads from which they form webs or cocoons.
2. , and then cooled down with air into filament. Another process is molten polyester turned out in the forms of sheet or strand, and is cooled down with air and then cut into chips. The chips are then dried and processed into molten polyester under an extruder machine. The molten polymer is then processed in a spinning machine.
Total production capacity for polyester fiber 1.53 million tons a year
There are at least 18 producers of polyester fiber in the country with a total annual capacity of 1.53 million tons consisting of polyester staple fiber (PSF) making up 639,020 tons and polyester filament yarn (PFY) 895,644 tons a year. Twelve of the companies have polymerization units to produce polyester chips with a total capacity of 1.09 million tons a year. The production capacity increased sharply following the completion of the expansion unit of GT Petrochem Industries, and the operation of new producers PT Pacific Fibre Corp. and PT Kohap Indonesia.
PT Pacific Fibretama Corp. has an annual production capacity of 13,500 tons of polyester chips and 86,500 tons of PSF. The PMDN PMDN Penanaman Modal Dalam Negeri company is 50% owned by PT Tirtamas Majutama, and 50% by PT Mulia Gahara. Its factory is located in Serang Se`rang´
n. 1. The boatswain of a Lascar or East Ondian crew. built with an investment of Rp 360 billion. PT Kohap Indonesia is a 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 as a joint venture between Kohap Ltd. of South Korea, and Kohap Ltd. of 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. . Its factory was built in Karawang, West Java with an investment of US$ 76.4 million.
Five of 16 polyester producers are publicly listed companies--PT Indorama Synthetics (Indorama Group), PT Polysindo Eka Perkasa (Texmaco Group), PT GT Petrochem Industries (Gajah Tunggal Group), PT Tifico and PT Panasia Indosynthec.
PT Indo Rama Synthetics is one of major producers of polyester chips. The PMA company has an annual capacity to produce 143,850 tons of polyester chips, 61,200 tons of PSF and 91,800 tons of PFY. The factory, which is located in Purwakarta, West Java, started operation in 1992. In the beginning the company had only a spinning production unit. In 1995, PT Indo Rama Synthetics, apart from synthetic polyester, started producing PET resin with an annual capacity of 60,000 tons. The publicly listed company under the Indo Rama group, is 17.35% owned by Brookgrange International Finance Ltd., 47.37% by PT Irama Unggul, 4.62% by International Finance Corporation and 30.66% by investing public.
PT Polysindo Eka Perkasa (PEP) is the largest producer of polyester in the country Its factory is integrated with PTA production facility. PEP, which is owned by the Texmaco Group was hit hard by the crisis that left trapped in a non performing debt of Rp 2.39 trillion to the bank rescue agency IBRA IBRA Indonesian Bank Restructuring Agency
IBRA International Bee Research Association (United Kingdom)
IBRA Interim Biogeographic Regionalisation for Australia
IBRA International Barrel Racing Association .
After expansion, the company had an annual capacity to produce 330,400 tons up from 50,400 tons earlier, 131,950 tons of polyester fiber, up from 7,200 tons earlier. In addition PEP started operating its PTA plant in 1997 with an annual capacity of 340,000 tons. PTA is a basic material for polyester. Most or 278,800 tons of its PTA production is used to feed its polyester chip production unit. Most or 270,000 tons of its production of 280,000 tons of polyester chips are processed into PSF including 180,000 tons in its Karawang plant and 90,000 tons in its Kaliwung plant in Kendal, Central Java Central Java (Indonesian: Provinsi Jawa Tengah) is a province of Indonesia. The administrative capital is Semarang. It is one of the six provinces of the island of Java. Central Java is both a political entity and a cultural concept. .
PT GT Petrochem Industries (GTPI), which is owned by the Gajah Tunggal Group has two polyester factories--in Tangerang and Karawang. Its factory in Tangerang has an annual capacity of 108,000 tons of PC, 43,800 tons of PFY and 64,200 tons of PSF. After the completion of its expansion unit in Karawang its production capacity rose to 210,000 tons of PC, 85,750 tons of PSF and 107,800 tons of PFY a year. GTPI uses the technology of Zimmer Aktiengesellschaft of Germany.
In the beginning the company with the name of PT Andayani Megah produced only nylon and rayon tyre cords. Later the company sought to diversify products by acquiring petrochemical companies including PT Prima Ethycolindo (the only producer of ethylene glycol in the country), PT Gemapersada Polimer (polyester polymer producer) and PT Berinda Mintra Stafindo (a PSF producer). In addition, GTPI has also acquired PT Filamendo Sakti (a producer of nylon tyre cord) and PT Sentra Sintetikajaya (a producer of SBR SBR - Spectral Band Replication ).
PT Sun-Kyong Keris Indonesia, a PMA company and subsidiary of the Batik batik (bətēk`), method of decorating fabrics practiced for centuries by the natives of Indonesia. It consists of applying a design to the surface of the cloth by using melted wax. Keris Group. PT Sun Kyong Keris Indonesia (SKI), which started operation in 1993, has a factory in Tangerang, Banten. SKI has an annual capacity to produce 59,500 tons of polyester chips and 78,475 tons of PFY. The jopint venture company is jointly owned by PT Rempoa Filament and Sun-Kyong Industry Ltd. and Sun-Kyong Ltd. from South Korea.
PT Poly Fibre Industry (Polyfin) started operation in 1993 to produce polyester fiber. The company is jointly owned by Arto Hardy and Tan King Lie each holding 50% of the shares. The company has an annual capacity to produce 43,750 tons of polyester chips and 76,650 tons of PFY. Its factory is located in Sumedang, West Java.
PT Panasia Indosyntec, originally named PT Hadtex Indosyntec, started operation in 1973 with factory located in Bandung. In addition to polyester fiber the company produces fancy gingham fabrics with an annual capacity of 2 million meters and fancy ladies fabrics with an annual capacity of 5 million meters through its subsidiary PT Panasia Filament Inti. The company went public in 1990. It is owned by the Hidjaja brothers, PT Panasia Synthetic Abadi and investing public.
PT Indonesia Toray Synthetics is a PMA jointly owned by Toray Industries Toray Industries, Inc. (東レ株式会社 Tōre Kabushiki-gaisha Inc., Mitsui & Co. Ltd., from Japan and local partners PT Easterntex and Bank Nomura Japco Indonesia. The company started operation inn 1971 producing PSF and PFY. In 1991, its started producing nylon filament yarns. Its factory is located in Tangerang, designed to produce polyester chips with an annual capacity of 36,000 tons, PSF with a capacity of 62,220 tons and PFY 14,620 tons.
PT Teijin Indonesia Fibre Corporation (Tifico) .is a joint venture between Indonesia and Japan with the status of PMA. The company started operation in 1976 and it was listed and became a public company in 1980. It is owned 65.8% by Teijin Limited of Japan, 16.5% by Toyo Menka Kaisha Ltd. of Japan, 13.2% by PT Danareksa and 4.5% by investing public. Its factory is located in Tangerang, Banten, with an annual capacity to produce 91,000 tons of polyester chips, 84,600 tons of PSF and 75,600 tons of PFY.
PT Global Fiberindo is also a PMA company owned by investors from South Korea--Jung Nam Choi, Tal Yul Yi and Kyung Chul Lee. Its factory is located in Tangerang built with an investment of US$ 5 million. It has an annual capacity to produce 12,000 tons of PSF.
PSF and PFY production capacity
The country's production capacity for PSF and PFY tended to increase from 1999 to 2003 with some producers expanding their capacity. The PSF production capacity rose from 450,000 tons in 1999 to 540,520 tons in 2003. In the same period the PFY production capacity rose form 825,840 tons to 895,644 tons a year. The production, however, has fluctuated and tended to decline. In 2003, the production of the two materials declined because of falling buying power Buying Power
The money an investor has available to buy securities. In a margin account, the buying power is the total cash held in the brokerage account plus maximum margin available.
Also referred to as "Excess Equity. of the people.
Production down by 2.6% annually
In the past five years, altogether the production of polyester fiber dropped by 2.6% annually on the average--from 971,750 tons in 11999 to 868,083 tons in 2003.
Investment interest low
In the period from 2002 to Sept, 2004, the capital investment coordinating board (BKPM BKPM Badan Pengawasan Pasar Modal (Indonesian investment coordinating board) ) issued new license only to a new project in the polyester sector namely to PT Woongdo Fiberindo. The PMA company planned to build a PSF plant with an annual capacity of 7,500 tons and with an investment of US$ 1 million. The factory is to start operation in January, 2006.
As already said the country's production of polyester fiber declined by 2.6% a year in 1999-2003. The PSF and PFY industries operated only at 57% of their installed capacity of 1.53 million tons in 2003.
Indonesia has the potential to become a major exporter of polyester fiber. An increase in exports will boost production of PSF and PFY. Therefore, the capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. is predicted to rise to 60% The capacity utilization is expected to rise further to 70% in 2005 to 80% in 2006, to 90% in 2007 and to 95% in 2008. Based on that prediction, production will rise from 918,000 tons in 2004 to 1.45 million tons in 2008.
Estimate of consumption of ethylene glycol (EG) and PTA
Polyester fiber has been produced mainly with PTA (purified terephthalic acid), and MEG (mono ethylene glycol) as the basic materials. Polyester chips are produced through esterification and poly-condensation of the basic materials. Factories not having polymerization facility will buy polyester chips from producers or through imports
With an annual capacity of 1.81 million tons a year, the country is no longer dependent on import for PTA. A ton of polyester chip will need 0.858 ton of PTA.
The other basic material ethylene glycol (EG) is produced only by PT Prima Ethycolindo (formerly Yasa Ganesha Pura PURA PACOM Utilization & Redistribution Agency
PURA Public Utility Regulatory Act ), a subsidiary of PT GT Petrochem Industries, with an annual capacity of 216,000 tons.
The country, therefore, is still heavily dependent on import for EG. A ton of polyester chip will need 0.338 ton of EG, Based on that ratios, consumption of both PTA and EG for polyester chips could be estimated.
Imports of polyester fiber fluctuating
Imports of PSF and PFY declined from 52,649 tons valued at US$41.7 million in 1999 to 37,112 tons valued at US$ 40.4 million in 2003. Imports of polyester are dominated by the types needed in TPT industry.
Exports of polyester fiber valued at US$ 129.7 million
The country has exported part of polyester fiber production. In 1999-2003, exports rose from 105,316 tons valued at US$ 90.2 million to 124,419 tons valued at US$ 129.7 million. PSF and PFY exports were equal in volume.
The European Union earlier imposed anti dumping sanction on synthetic yarns from Indonesia. The sanction ended in 2001. The European Union has become the main market of the country's yarns and synthetic yarn. The anti dumping duty, however, made the country's products less competitive facing competition from other products mainly from China and Taiwan even from Saudi Arabia Saudi Arabia (sä`dē ərā`bēə, sou`–, sô–), officially Kingdom of Saudi Arabia, kingdom (2005 est. pop. , new producer.
The surcharge imposed by the EU ranged from 8.4% to 15.8%. The companies meted out with the sanction included Indorama (8.4%), Panasia (14.8%), Tifico, GT Petrochem and Sulindafin each with 14% anti dumping import duty, Tri Rempoa, Kumafiber, Indo Toray Syntheitics and Polysindo each 15.8% added to 10% anti subsidy import duty.
Apsyfi said the country suffered a potential loss of US$ 62 million a year in exports to the EU.
The TPT Industry Director at the Industry and Trade Ministry Luky Hartini said after the abolition of the quota system in January, 2005, countries of destination are expected to impose lower import duties on natural fiber based TPT compared with those made of polyester fiber. The import duties on Indonesian TPT in the United States are higher as the country's TPT is made mainly of pure polyester fiber. IN addition, the United States adopts the weighted import duty mechanism. The import duty will be lower if polyester is blended with natural fiber such as cotton. The United States is interested in protecting its polyester fiber industry
India the largest buyer
Polyester fibers have been exported to a number of countries. In 2003, the largest buyer was India to which exports totaled 19,236 tons valued at US$ 12.9 million of PSF and 24,947 tons valued at US$ 23.5 million of PFY. Other major buyers included China, to which exports totaled 12,588 tons valued at US$ 8 million. See the following table.
Consumption down 4% a year
PSF and PFY are the main types of synthetic fibers used in the country. Based on assumption that consumption is equivalent to local production plus import minus export, the domestic consumption declined by 4% a year in the 1999-2003 period from 919,083 tons to 780,776 tons. The decline followed the crisis that hit the country's economy since 1997.
In the coming years consumption of polyester fibers is predicted to increase to follow the progress made toward economic recovery and improvement of the world economy. Improvement of the world economy will boost the country's production of TPT and as a result demand for basic materials including polyester fibers will increase. Based on that prediction, the country's consumption of polyester fiber is expected to rise 5% annually in 2005 and 2006 and by 8% in 2007 and 2008.
Consumption of polyester chips, therefore will rise from 820,000 tons in 2004 to 1.06 million tons in 2008.
Prospects and conclusion
With limited capacity to produce cotton fiber, the country is concentrating more on strengthening its synthetic fiber industry especially polyester fiber industry. Per capita [Latin, By the heads or polls.] A term used in the Descent and Distribution of the estate of one who dies without a will. It means to share and share alike according to the number of individuals. consumption of polyester fiber in the country is still low compared with in many other countries.
In the past three years there was a decline in consumption of polyester fiber marking the decline of the country's TPT industry. The trend indicated a shift in the use of polyester fiber to other types of fiber notably with the decline in the price of cotton expected to continue through 2005. The decline in cotton price will make it easier for TPT producer to combine polyester and cotton as yam basic materials. However, demand for polyester fiber especially for PSF is predicted to continue to increase as polyester remains dominant as a basic material for yams in the country.
Therefore, demand for polyester fiber is predicted to continue to rise in the next five years. In the coming year, the country is still expected to have exportable surplus in supply of polyester fiber as the production capacity still exceeds domestic consumption.
Table--1 Producers of polyester chips, PSF & PFY and their production capacity, 2003 (Ton/year) Name of company Status Location Pacific Fibretama Corp, PT PMDN Serang Kohap Indonesia, PT PMA Karawang Indonesia Toray Synthetics, PT PMA Tangerang Kumafiber, PT PMA Tangerang Polysindo Eka Perkasa, PT PMDN Karawang GT Petrochem Industries, PT PMDN Tangerang & Karawang Sulindafin, PT PMDN Tangerang Texmaco Taman Synthetics, PT PMDN Kendal Teijin Indonesia Fiber Corp., PT PMA Tangerang Panasia Indosyntec, PT PMDN Bandung Indo Rama Synthetics, PT PMA Purwakarta Sun-Kyong Keris Indonesia, PT PMA Tangerang Poly Fibre Industry, PT PMDN Sumedang Vastex Prima Industries, PT PMDN Bandung Central Filament Mills, PT PMDN Bandung Multikarsa Investama, PT PMDN Kendal Mutugading, PT PMDN Global Fiberindo, PT PMA Tangerang Total Name of company Production Capacity Polyester PSF PFY chips Pacific Fibretama Corp, PT 13,500 86,500 -- Koha Indonesia, PT -- -- 29,164 Indonesia Toray Synthetics, PT 36,000 62,220 14,620 Kumafiber, PT 19,250 17,500 -- Polysindo Eka Perkasa, PT 330,400 131,950 217,000 GT Petrochem Industries, PT 210,000 85,750 107,800 Sulindafin, PT 54,000 27,000 30,240 Texmaco Taman Synthetics, PT -- -- 27,300 Teijin Indonesia Fiber Corp., PT 91,000 122,500 73,500 Panasia Indosyntec, PT 70,000 32,400 50,400 Indo Rama Synthetics, PT 143,850 61,200 91,800 Sun-Kyong Keris Indonesia, PT 59,500 -- 78,475 Poly Fibre Industry, PT 43,750 -- 75,600 Vastex Prima Industries, PT -- -- 12,950 Central Filament Mills, PT -- -- 14,235 Multikarsa Investama, PT -- -- 54,950 Mutugading, PT -- -- 16,560 Global Fiberindo, PT -- 12,000 -- Total 1,091,050 639,020 895,644 Note : PSF-- Polyester staple fibre PFY--Polyester filament yarn PC--Polyester Chips Source : Apsyfi/Data Consult Table--2 PSF and PFY production capacity and production, 1999-2003 Year Production Production Growth Capacity PSF (Ton) (%) (Ton/Year) 1999 450,000 401,890 -- 2000 495,835 421,305 4.8 2001 507,835 439,875 4.4 2002 537,020 468,630 6.5 2003 639,020 426,070 -9.1 Average growth (%) 1.6 Year Production Production Growth Capacity (Ton) (%) PFY Ton/Year 1999 825,840 569,860 -- 2000 815,065 559,087 -1.9 2001 815,065 524,311 -6.3 2002 899,558 490,202 -6.6 2003 895,644 442,013 -9.9 Average growth (%) -6.1 Source: Apsyfi/Data Consult Table--3 Production of polyester fiber, 1999 - 2003 (Tons) Year Production Change PSF PFY Total % 1999 401,890 569,860 971,750 -- 2000 421,305 559,087 980,392 0.9 2001 439,875 524,311 964,186 -1.7 2002 468,630 490,202 958,832 -0.1 2003 426,070 442,013 868,083 -9.5 Average growth -2.6 Source: Apsyfi/Data Consult Table--4 New projects in polyester synthetic fiber industry, 2002-2004 *) Name of company Status Location Investment Production (US$ Capacity Million Ton/Year Woongdo Fiberindo, PT PMA Serang 1.0 PSF--7,500 Name of company BKPM Approv al Woongdo Fiberindo, PT Jan 2004 PSF--Polyester staple fibre; Source: Data Consult Table--5 Projected production of polyester synthetic fiber, 2004-2008 Year Projected Production ('000 Ton) 2004 918 2005 1,070 2006 1,220 2007 1,380 2008 1,450 Source: Data Consult Table--6 Estimated consumption of PTA and EG for polyester chips, 1999-2003 (Tons) Year Production Consumption Polyester chips PTA EG 1999 1,068,925 917,137 361,296 2000 1,078,431 925,294 364,509 2001 1,060,605 909,999 358,484 2002 1,054,715 904,945 356,494 2003 954,891 819,296 322,753 Source: Data Consult Table--7 Imports of polyester fibers, 1999-2003 Tons (US$'000) Year Polyester staple Polyester Total fiber (PSF) filament yarn PFY 1999 48,679 3,970 52,649 36,128 5,593 41,721 2000 64,010 4,450 68,460 57,598 9,642 67,240 2001 46,622 4,361 50,983 39,971 10,540 50,511 2002 34,503 5,524 40,027 27,400 13,403 40,803 2003 32,543 4,569 37,112 30,415 10,023 40,438 Source: CBS/Data Table--8 Exports of polyester fibers, 1999-2003 Tons (US$'000) Year Polyester staple fiber Polyester filament Total (PSF) yarn (PFY) 1999 39,134 66,182 105,316 25,716 64,504 90,220 2000 44,627 95,356 139,983 34,821 110,682 145,503 2001 45,441 95,974 141,415 32,726 103,906 136,632 2002 94,549 104,696 199,245 67,414 106,931 174,345 2003 61,527 62,892 124,419 53,749 75,960 129,709 Source: CBS/Data Consult Table--9 Exports of polyesters fibers by countries of destination, 2003 Tons (US$'000) Count of destination 2003 PSF: India 19,236 12,933 Hong Kong 7,760 6,231 China 12,588 8,034 Pakistan 2,080 1,258 Thailand 4,366 3,176 Bangladesh 6,097 4,475 Iran 2,134 1,618 Egypt 6,159 4,479 Australia 5,552 3,573 United States 3,544 2,548 Germany 2,666 1,560 Others Subtotal 61,527 53,749 PFY: Japan 8,275 12,388 South Korea 2,399 2,810 China 4,570 3,865 India 24,947 23,554 Thailand 6,526 5,984 Pakistan 5,644 5,802 Syria 3,110 2,632 Turkey 7,023 6,858 Brazil 3,758 4,739 United States 6,906 7,443 Others Subtotal 62,892 75,960 Total 124,419 129,709 Source: CBS/Data Consult Table--10 Estimated consumption of synthetic polyester, 1999-2003 (Tons) Year Production Import Export Consumption Growth (%) 1999 971,750 52,649 105,316 919,083 -- 2000 980,392 68,460 139,983 908,869 -1.2 2001 964,186 50,983 141,415 862,798 -5.1 2002 958,832 40,027 199,245 799,614 -7.4 2003 868,083 37,112 124,419 780,776 -2.4 Average growth (%) -4.0 Source: Data Consult Table--11 Projected consumption of synthetic polyester, 2004-2008 Year Projected consumption (000 Tons) 2004 820 2005 860 2006 910 2007 980 2008 1,060 Source: Data Consult Table--12 Projected production and consumption of polyester fibers, 2004-2008 Year Projected ('000 Tons) Balance Production Consumption 2004 918 820 98 2005 1,070 860 210 2006 1,220 910 310 2007 1,380 980 400 2008 1,450 1,060 480 Source: Data Consult