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ZINC COATED STEEL SHEET INDUSTRY REINVIGORATED.



Introduction

When the economic crisis destroyed the construction sector, the zinc zinc, metallic chemical element; symbol Zn; at. no. 30; at. wt. 65.38; m.p. 419.58°C;; b.p. 907°C;; sp. gr. 7.133 at 25°C;; valence +2. Zinc is a lustrous bluish-white metal. It is found in Group 12 of the periodic table.  industry was badly affected since the sector was the main consumer of zinc sheets. It is understandable that a number of zinc producers had to close down their factories or maintain their operation at a much lower production capacity.

A number of companies with strong capital and well established marketing network overseas manage to export their products. Some of them were successful in this venture but many were not able to face the tough competition at the international market, forcing them to rely on the limited market share in the country.

In the beginning of this year, however, the industry started to see the light at the end of the tunnel especially when the government started to reprogram re·pro·gram  
tr.v. re·pro·grammed or re·pro·gramed, re·pro·gram·ming or re·pro·gram·ing, re·pro·grams
To program again.



re
 the development of low cost housing even if the number is much smaller compared to the period prior to the crisis.

The domestic market condition, however, is still sluggish while competition is getting more fierce, not just from similar products but also substitute products such as asbestos asbestos, mineral
asbestos, common name for any of a variety of silicate minerals within the amphibole and serpentine groups that are fibrous in structure and more or less resistant to acid and fire.
 sheets and brick tiles.

This report will discuss the development of zinc industry in Indonesia Indonesia (ĭn'dənē`zhə), officially Republic of Indonesia, republic (2005 est. pop. 241,974,000), c.735,000 sq mi (1,903,650 sq km), SE Asia, in the Malay Archipelago.  during the crisis,, the competition and market opportunities that can be expected in the future.

Description of products

Zinc coated steel sheet is a derivative derivative: see calculus.
derivative

In mathematics, a fundamental concept of differential calculus representing the instantaneous rate of change of a function.
 product of Cold Rolled Sheet (CRS CRS Course
CRS Certified Residential Specialist (real estate certification)
CRS Central Reservation System
CRS Can't Remember Stuff (polite form)
CRS Cost Reduction Strategy
CRS Consumer Relations Specialist
) which is coated with zinc. Zinc coated steel sheet produced in Indonesia is classified into two major groups ie plain zinc coated steel sheet and colored zinc coated steel sheet. The latter is produced from the former that has been coated with color material. In terms of shapes, zinc coated steel sheets consists of the flat one and the corrugated cor·ru·gate  
v. cor·ru·gat·ed, cor·ru·gat·ing, cor·ru·gates

v.tr.
To shape into folds or parallel and alternating ridges and grooves.

v.intr.
 one.

Zinc coated steel sheet produced in Indonesia has a thickness thickness (thik´nes) a measurement across the smallest dimension of an object.

triceps skinfold (TSF) thickness
 of 0.20 mm to more than 1.00 mm. The past 12 months however, have seen more zinc coated steel sheet produced with thickness of less than 0.20 mm which is actually below the minimum thickness under the Standard Nasional Indonesia (SNI (1) (Subscriber Network Interface) The point of interface between the customer's equipment (CPE) and a communications service from a common carrier.

(2) (SNA Network I
).

Decreasing number of producers

The declining demand for zinc in the country as a consequence of termination of many construction projects has forced many local zinc producers to quit To exit the current program. . Among the companies that have had to close down their operation are PT Polyguna Nusantara, PT Super Steel Indah, PT Eastindo Utama Industri, PT Alim Ampuh Jaya Jaya (born Maria Luisa Ramsey on March 21, 1970, in Manila, Philippines) is a Filipino pop singer with African American ancestry. Biography
She is known in the Philippines as the Queen of Soul.
, PT jaindo Utama and PT Union.

In the efforts to improve the efficiency, several producers that belong to one particular group have merged into one zinc producer. One example was, PT Industri Baja Baja (bŏ`yŏ), city (1991 est. pop. 38,867), S Hungary, on the Danube River. It is a river port and a road and rail hub, where agricultural products of the surrounding region are traded and processed.  Garuda in Medan, that has merged with PT Industri Baja Galvanilmas which is owned by the same person ie Bobby Pitoy.

According to according to
prep.
1. As stated or indicated by; on the authority of: according to historians.

2. In keeping with: according to instructions.

3.
 the Association of Zinc Coated Steel Sheets (GAPBESI) there are 15 factories that are operational with a total capacity of 1.187.000 ton per year. However, field checking has shown that 5 out of these 15 companies have not been operational for the past one or two years. Meanwhile the ones that are still operational are struggling to do so at a much lower rate (less than 50%) than their production capacity.

These companies that are still surviving are those that have started to be export oriented o·ri·ent  
n.
1. Orient The countries of Asia, especially of eastern Asia.

2.
a. The luster characteristic of a pearl of high quality.

b. A pearl having exceptional luster.

3.
 and they are normally the major zinc producers in Indonesia such as PT Fumira, PT BHP BHP

blood hydrostatic pressure; the pressure exerted by the blood cells and plasma in the capillaries.
 Steel Indonesia and PT-Tumbak Mas.

Table - 1 List of Zinc Coated Steel Sheets Producers in Indonesia, 2000
         Producer                Established        Location
                                  /expanded

PT Fumira                            19,681,997    West Java,
                                                     Semarang
PT Tumbak Mas                  1967, 1981, 1996     West Java
PT Bisma Narendra                          1998     West Java
PT BHP Steel Indonesia                     1995       Cilegon
PT Sarana Sentral Baja                     1999     West Java
PT Industri Galvanael Mas                  1996         Medan
PT Intan Nasional Indonesia          1971, 1982         Medan
PT Kerismas Witico Makmur            1972, 1979      Jakarta,
                                                       Manado
PT Wira Mustika                            1977       Jakarta
PT Kalimantan Steel Corp             1972, 1981    Pontianak,
                                                     Surabaya
PT Industri Baja Garuda                    1970         Medan
PT Sermani Steel                           1970     U.Pandang
PT Polyguna Nusantara                      1972        Padang
PT Dharmaputera                            1974     Palembang
PT Semarang Makmur                         1975      Semarang
Total

         Producer                Prod. Cap
                                (ton/year)

PT Fumira                         210.000

PT Tumbak Mas                     155.000
PT Bisma Narendra                  58.000
PT BHP Steel Indonesia            130.000
PT Sarana Sentral Baja            100.000
PT Industri Galvanael Mas         100.000
PT Intan Nasional Indonesia        90.000
PT Kerismas Witico Makmur         100.000

PT Wira Mustika                    48.000
PT Kalimantan Steel Corp           43.000

PT Industri Baja Garuda                 0
PT Sermani Steel                   36,000
PT Polyguna Nusantara              24,000
PT Dharmaputera                    15,000
PT Semarang Makmur                 42,000
Total                           1,187,000



Source: Association Steel Sheet/Data Consult

Production of Zinc Coated Steel Sheet dropped considerably

The past two years, 1998 and 1999, have seen a drastic drop of production of zinc coated steel sheet in the country. The industry reached the lowest point in 1998, when the production only reached 230,645 tons (Transparent Optical Networking Services) A marketing term for providing dark fiber to a customer. The customer is responsible for generating the transmission signal and interpreting it at the other end. See dark fiber.  compared to 413,738 tons in 1997. This unfavourable situation is understandable since at the same time the construction sector experienced a contraction contraction, in physics
contraction, in physics: see expansion.
contraction, in grammar
contraction, in writing: see abbreviation.

contraction - reduction
 of up to 46% as seen from its contribution to the GDP GDP (guanosine diphosphate): see guanine.  (Gross Domestic Product).

In 1999, the signs of revival revival n. 1) requesting a court to reinstate the force of an old judgment. 2) reinstating a contract or debt by a new agreement after the right to demand performance or collect has expired under the statute of limitations (the time to sue).  started to appear, albeit softly in the form of an increase of 8,55%. According to a source within the zinc industry, the year 2000 has shown better signs of recovery During the semester se·mes·ter  
n.
One of two divisions of 15 to 18 weeks each of an academic year.



[German, from Latin (cursus) s
 I of this year, zinc production has reached 147.800 ton.

Table - 2 Production of zinc coated steel sheet, 1995-2000(*)
Year       Production     Growth
           (000 tons)       (%)

1995        406,141          --
1996        414,790        2.13
1997        413,738       -0.25
1998        230,645      -44.25
1999        250,359        8.55
2000(*)     147,800          --



Note: (*) as of June 2000

The Industry dominated by 5 companies

Although the Department of Trade and Industry The Department of Trade and Industry was a United Kingdom government department which was disbanded with the announcement of the creation of the Department for Business, Enterprise and Regulatory Reform on 28 June 2007[1].  registered 22 companies and the association 15 companies in operation, the Indonesian zinc coated steel sheet industry is actually dominated by 5 major companies ie PT Fumira, PT Tumbak Mas, PT BHP Steel, PT Kerismas Witico Makmur, PT Bisma Narendra and PT Kalisco.

In terms of groups that oversee these companies, the industry is dominated by 3 major groups ie Argo Argo (är`gō), in Greek mythology, ship in which Jason and the Argonauts sailed in quest of the Golden Fleece. Most legends say that Argus, son of Phrixus, was the builder, with the help of Athena.  Manunggal Group, Salim Group The Salim Group is Indonesia's big­gest conglomerate with assets including Indofood Sukses Mamur, the world's largest instant noodle producer, and Bogasari, a larg­e flour-milling operation [1]. The group was founded by Sudono Salim.  and Rodamas Group and an Australian based company, BHP steel.

PT Fumira, is a producer of zinc coated steel sheet with a production capacity of 210.000 ton per year in 1999. PT Fumira is a joint venture between a local company PT Ragam Logam which is under the Argo Manunggal Group (40%) and 2 Japanese companies ie Nippon Nippon (nĭp`ŏn, nĭpŏn`), name for Japan, derived from Dai Nippon, meaning Great Japan. The expression comes from the Chinese ideograph for the place where the sun comes from, or Land of the Rising Sun.  Steel Corp and Mitsui Mitsui: see zaibatsu.  & Co.

In view of the production capacity, the second largest producer is PT Tumbakmas Inti Mulia, a subsidiary of the Roda Mas Group. PT BHP Steel Indonesia is a joint venture between an Australian company, The Broken Hill Proprietary Company Ltd and several local companies ie PT Puma Sentana Baja, PT Krakatau Industrial Estate, Cilegon Cilegon is a major coastal industrial city in Banten province, Indonesia. Among the factories located in Cilegon are PT Krakatau Steel, a vital company in Indonesia, which produces steel for industrial (domestic and foreign) needs, and PT Asahimas Chemical.  Cahaya Steel and Yayasan Kesejahteraan Karyawan Bank Indonesia Bank Indonesia is the central bank of Indonesia. Its current governor is Burhanuddin Abdullah. History
Bank Indonesia was founded on July 1, 1953, in the Sukarno era - from the nationalization of De Javasche Bank, a Dutch bank dating from colonial times.
. This company has a production capacity of 130.000 ton and is the third largest producer in Indonesia.

The following table shows that even the large producers of zinc coated steel sheets have been operating at 15-40% of their production capacity. Only PT Kerismas Witico makmur has been producing at above 50% of the production capacity.

Table - 3 Production of zinc coated steel sheet by company, 1997-1999

(tons)
         Producers              Prod. Cap     1997

PT Fumira                        210,000     55,156
PT Tumbak Mas                    155,000     57,962
PT Bisma Narendra                 58,000          0
PT BHP Steel Indonesia           130,000    102,144
PT Sarana Sentral Baja           100,000          0
PT Industri Galvanael Mas        100,000          0
PT Intan Nasional Indonesia       90,000     22,259
PT Kerismas Witico Makmur        100,000     79,774
PT Wira Mustika                   48,000      8,827
PT Kalimantan Steel Corp          43,000     29,239
PT Industri Baja Garuda                0     25,325
PT Sermani Steel                      36     22,237
PT Polyguna Nusantara             24,000          0
PT Dharmaputera                   15,000     10,816
Others                              n.a.          0
Total                                       413,738

         Producers                1998      1999

PT Fumira                       85,348    52,707
PT Tumbak Mas                   14,040    24,147
PT Bisma Narendra                1,060    13,586
PT BHP Steel Indonesia          29,898    57,695
PT Sarana Sentral Baja             651        86
PT Industri Galvanael Mas       14,621         0
PT Intan Nasional Indonesia         --         0
PT Kerismas Witico Makmur       47,663    67,359
PT Wira Mustika                     --         0
PT Kalimantan Steel Corp        15,841    19,113
PT Industri Baja Garuda              0         0
PT Sermani Steel                20,000     7,090
PT Polyguna Nusantara                0         0
PT Dharmaputera                  1,512     6,390
Others                               0     1,771
Total                          230,645       250



Source: GI sheet association/field research/PT KS

Import of zinc coated steel sheet still huge

Although the local market is still sluggish, it appears that the import of zinc coated steel sheet has remained large as it reached 55.465 tons worth 1 US$ 34.925.000. The import has dropped compared to the figure of the previous three years which reached an average of 77.000 - 91.000 ton per year.

The import of zinc coated steel sheet has been dominated by the colored type that is required for roofs. The import has been done by BRC BRC Black Rock City (Burning Man)
BRC British Retail Consortium
BRC Business Resource Center (Small Business Administration)
BRC Bisexual Resource Center
BRC Black Radical Congress
 Lysaght Indonesia, one of the most prominent roof supplier. The import of the type known as "electrolytically plated with zinc" is also quite large particularly to meet the demand from the automotive, sector One of the importers is PT Toyota Astra motor which imports zinc coated steel sheet directly particularly the "zinc/aluminium coated GI sheet" type.

Import of zinc coated steel sheet is also done by producers of electronic and electrical goods such as AC ie PT Matushishta Gobel Gobel and Göbel are surnames, and may refer to:
  • George Gobel, American comedian
  • Heinrich Göbel, German mechanic and inventor
  • Jean-Baptiste-Joseph Gobel, French Roman Catholic cleric and politician of the Revolution
  • Kristoffer Göbel, Swedish vocalist
 Electronics, PT Sanyo SANYO Three Oceans (Japanese, refers to Pacific, Atlantic, and Indian Oceans)  Industries and PT Hartono Electronics.

The following table shows that import of zinc coated steel sheet declined in 1999. In 2000, the import will increase as shown by the volume registered during the first semester which reached 29.924 ton. This growth has been triggered by the recovery of the automotive industry The automotive industry is the industry involved in the design, development, manufacture, marketing, and sale of motor vehicles. In 2006, more than 69 million motor vehicles, including cars and commercial vehicles were produced worldwide.  and the business sector in general which has created demands due to construction of new buildings and renovation of existing ones.

Table - 4 Development of Import of zinc coated steel sheet by type, 1995 - June 2000

TONS '000 US$
  No. HS                      DESCRIPTION                    1995

7210.30.000    Electrolytically plated with zinc            22,572
                                                            17,819
7210.41.000    Corrugated                                      114
                                                               115
7210.49.000    Other                                        19,242
                                                            14,275
7210.50.000    Plated or coated with chrominum oxides or    20,262
               with chromium and chromium oxides            14,661
7210.61.000    Plated or coated with aluminium zinc         10,805
               alloys                                        8,832
7210.69.000    Other of flat roll prod. Of iron which          --
               plated/coated with aluminium-zinc alloys        --
7210.70.000    Painted varnised or coaled with plastic       4,313
                                                             5,969

               TOTAL                                        77,308
                                                            61,671

               DESCRIPTION                    1996      1997

Electrolytically plated with zinc            23,212    17,293
                                             18,265    12,401
Corrugated                                        1       561
                                                  5       663
Other                                        26,540    27,066
                                             19,638    17,754
Plated or coated with chrominum oxides or    12,946    14,103
with chromium and chromium oxides            11,002    10,267
Plated or coated with aluminium zinc          9,687    10,883
alloys                                        7,035     7,222
Other of flat roll prod. Of iron which        3,302     5,638
plated/coated with aluminium-zinc alloys      2,671     5,252
Painted varnised or coaled with plastic       2,646     3,658
                                              3,616     4,778

               TOTAL                         78,334    79,202
                                             62,232    58,337

               DESCRIPTION                    1998      1999

Electrolytically plated with zinc            21,988    15,137
                                             15,544    10,392
Corrugated                                      686         1
                                                758         7
Other                                        35,981    18,431
                                             23,193    10,914
Plated or coated with chrominum oxides or    20,362    17,246
with chromium and chromium oxides            14,640    10,247
Plated or coated with aluminium zinc          7,217     1,834
alloys                                        5,168     1,027
Other of flat roll prod. Of iron which        2,659       123
plated/coated with aluminium-zinc alloys      2,145        84
Painted varnised or coaled with plastic       2,622     2,693
                                              3,020     2,254

               TOTAL                         91,515    55,465
                                             64,468    34,925

               DESCRIPTION                   2000(*)

Electrolytically plated with zinc             11,252
                                               6,501
Corrugated                                         4
                                                   4
Other                                          4,587
                                               2,636
Plated or coated with chrominum oxides or      8,893
with chromium and chromium oxides              5,273
Plated or coated with aluminium zinc           3,070
alloys                                         1,799
Other of flat roll prod. Of iron which           643
plated/coated with aluminium-zinc alloys         462
Painted varnised or coaled with plastic        1,475
                                               1,182

               TOTAL                          29,924
                                              17,857



Source: Data Consult

Japan is the main supplier of zinc coated steel sheet to Indonesia. The supply from Japan, prior to the crisis, reached 45-50% of Indonesia's total import of this product. During the past two years, the supply has increased sharply, into 75-80% of Indonesia's total import. The second largest supplier, with a much lower portion, is Korea Korea (kôrē`ə, kə–), Korean Hanguk or Choson, region and historic country (85,049 sq mi/220,277 sq km), E Asia. . In 1998, Korea supplied 12.761 tons of zinc coated steel sheet to Indonesia or 14% of the total import by Indonesia.

Table - 5 Development of Import of zinc coated steel sheet by country of origin, 1995 - 1999

Tons '000 US$
 Country of origin       1995     1996     1997     1998     1999

Japan                   40,016   39,670   39,719   65,971   40,992
                        39,903   34,698   30,445   45,650   26,882

USA                        652      583       37      368      388
                           506      475      115      520      283

Germany                     79      832      166      107       98
                            93      600      160       86       63

France                     135      695      301       87       11
                           156      575      243      218        9

Korea                   15,539   17,887   16,911   12,761    8,823
                        11,713   13,624   11,459    9,146    5,460

Australia                4,686    2,808    4,287    1,686       84
                         3,536    1,954    3,203    1,255       60

Taiwan                     312    7,585    7,639      935    1,633
                           377    4,933    4,893      662      890

Singapore                  243      273      620      515      418
                           201      109      391      437      115

Canada                      99       48      462      686       --
                            67       91      564      783       --

Belgium & Luxemburg      1,605    3,411   34,381    1,653      838
                         1,066    2,292    2,102    1,057      160

Brazil                     691      496    3,656    3,313      605
                           433      383    2,524    2,191      308

Others                  13,251    4,046    1,966    3,433    1,575
                         3,620    2,498    2,238    2,463      695
    Total               77,308   78,334   79,202   91,515   55,465
                       616,711   62,232   58,337   64,468   34,925



Source: Data Consult

Export of zinc coated steel sheet increased

The sharp depreciation of rupiah ru·pi·ah  
n. pl. rupiah
See Table at currency.



[Hindi rupay, rupiy
 against the US $ has encouraged producers of zinc coated steel sheets to penetrate the export market. This is also due to the sluggish domestic market which has been affected by the weakening purchasing power Purchasing Power

1. The value of a currency expressed in terms of the amount of goods or services that one unit of money can buy. Purchasing power is important because, all else being equal, inflation decreases the amount of goods or services you'd be able to purchase.

2.
 of the people.

Increasing the export of this product is not so easy as it has to face fierce competition with the products of neighbouring neighbouring or US neighboring
Adjective

situated nearby: the neighbouring island

neighbouring U.S.
 countries such as Malaysia Malaysia (məlā`zhə), independent federation (2005 est. pop. 23,953,000), 128,430 sq mi (332,633 sq km), Southeast Asia. The official capital and by far the largest city is Kuala Lumpur; Putrajaya is the adminstrative capital. . The companies that have managed to push into the export market are those with connections overseas such as PT Fumira which has connection with a giant Japanese steel company and PT BHP Steel Indonesia which has a foreign partner from Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. .

The type of product that has been exported by the Indonesian producers is the steel sheet coated with aluminium zinc.

Table - 6 Development of Export of Zinc Coated Steel Sheet 1995-2000(*)

Tons '000 US$
No. HS                       DESCRIPTION                    1995

7210.30.000   Electrolytically plated with Zinc               --
                                                              --
7210.41.000   Corrugated                                  26,470
                                                          20,865
7210.49.000   Other                                        1,624
                                                           1,274
7210.50.000   Plated or coated with chrominum oxides or       --
              with chromium and chromium oxides               --
7210.61.000   Plated or Coated with aluminium zinc            13
              alloys                                           7
7210.69.000   Other of flat roll prod. Of iron which         127
              plated/coated with aluminium-zinc alloys       167
7210.70.000   Painted, varnised or coated with plastic        30
                                                              21

                  TOTAL                                   28,264
                                                          22,334

           DESCRIPTION                        1996      1997

Electrolytically plated with Zinc              323       --
                                               174       --
Corrugated                                  14,068   26,749
                                            11,718   27,655
Other                                        2,463    1,323
                                             1,916      915
Plated or coated with chrominum oxides or       --       19
with chromium and chromium oxides               --       31

Plated or Coated with aluminium zinc         2,841   20,170
alloys                                       1,907   13,360
Other of flat roll prod. Of iron which           4       --
plated/coated with aluminium-zinc alloys         2       --
Painted, varnised or coated with plastic       802   11,373
                                               689    2,479

    TOTAL                                   20,501   59,634
                                            16,406   44,440

           DESCRIPTION                       1998     1999

Electrolytically plated with Zinc           19,574   10,332
                                             9,269    4,502
Corrugated                                  21,297    3,992
                                            15,057    2,065
Other                                        5,569   12,359
                                             2,978    6,093
Plated or coated with chrominum oxides or      181    1,086
with chromium and chromium oxides              259    2,326
Plated or Coated with aluminium zinc        15,122   31,958
alloys                                       8,599   15,962
Other of flat roll prod. Of iron which          --       --
plated/coated with aluminium-zinc alloys        --       --
Painted, varnised or coated with plastic     2,223    2,831
                                             1,708    1,930

    TOTAL                                   63,966   62,579
                                            37,870   32,893

           DESCRIPTION                      2000(*)

Electrolytically plated with Zinc            13,871
                                              6,449
Corrugated                                    2,514
                                              1,335
Other                                         4,018
                                              2,336
Plated or coated with chrominum oxides or     2,027
with chromium and chromium oxides             2,813
Plated or Coated with aluminium zinc         12,601
alloys                                        6,752
Other of flat roll prod. Of iron which           21
plated/coated with aluminium-zinc alloys         15
Painted, varnised or coated with plastic        120
                                                 85

    TOTAL                                    35,151
                                             19,770



(*) up to June 2000

Source: Data Consult

The countries of destination for the export of Indonesian zinc coated steel sheet have varied and frequently changed. In 1995, the major country of destination is Myanmar Myanmar (myän`mär, mēän'mär`) or Burma (bûr`mə), officially Union of Myanmar, republic (2005 est. pop. 42,909,000), 261,789 sq mi (678,033 sq km), SE Asia. , in 1997 Singapore Singapore (sĭng`gəpôr, sĭng`ə–, sĭng'gəpôr`), officially Republic of Singapore, republic (2005 est. pop. 4,426,000), 240 sq mi (625 sq km).  and in 1998 again Myanmar. In 1998, the export to the USA was quite significant although less than that to Myanmar.

Table - 7 Development of Export of zinc coated steel sheet by country of destination, 1995-1999
Country of destination    1995     1996     1997     1998     1999

China                       700       --      934    3,617    2,312
                            679       --      633    2,894    1,518

Singapore                 5,111    1,247   29,051    4,310    1,309
                          4,184    1,014   22,238    4,102    1,017

Myanmar                  20,763   15,711    8,869   17,074    4,436
                         16,338   12,993    7,541   10,362    2,264

Vietnam Rep                 605      192      954    3,458   22,382
                            373      136      709    2,396   11,101

USA                         380       --       --   13,381   11,683
                            268       --       --    6,906    5,390

Malaysia                    131    1,122    6,349       64      200
                            110      758    4,254       41      115

Philippines                  --      622    3,086      397      370
                             --      325    1,875      384      335

Thailand                     --    1,210    9,137    1,624      128
                             --      883    6,194      702       84

Equador                      --       --       --    4,386    1,276
                             --       --       --    2,464      843

Canada                       --       --       --      217    9,563
                             --       --       --      125    4,617

Others                      574      397    1,254   15,438    8,920
                            382      297      996    7,494    5,609

    Total                28,264   20,501   59,634   63,966   62,579
                         22,334   16,406   44,440   37,870   32,893



Source: Data Consult

Increase in consumption started

The past three years (up to 1999), have seen a drastic decrease in consumption of zinc coated steel sheet due to the lack of construction activities, neither for new buildings nor for renovation, as the purchasing power of the people weakened considerably. During this period the consumption dropped from 495.794 ton in 1996 to 247.549 ton in 1998 and 242.886 ton in 1999.

In 2000, the demand from the local market started to increase particularly for low cost housing projects. The first semester of 2000, registered a total consumption of 153.181 tons.

Assuming that the stocks of product at the beginning and end of the year remain the same, the consumption of zinc coated steel sheet can be estimated as the sum of production and import minus export. Using this formula, the consumption rates are as follows:

Table - 8 Estimated Growth of Consumption of Zinc Coated Steel Sheet, 1995- 2000(*)
Year         Production   Imports   Exports   Consumption   Increase
                                                               (%)

1995          435,117      68,880    25,264     474,733          --
1996          450,907      65,388    20,501     495,794        4.43
1997          523.964      79.202    59.634     543.532        9.62
1998          220.000      91.515    63.966     247.549      -54.46
1999          250.000      55.465    62.579     242.999       -1.84
June 2000     147.800      35.151    29.770     153.181      -36.96



Source: Data Consult

In Indonesia, zinc coated steel sheets are mostly used for "roofing and sliding", and only 20% are used for deck, ducting duct·ing  
n.
1. A duct or system of ducts.

2. Material for making ducts.
, automotive and industrial purposes.

Competition Getting Tougher

The increasing consumption in the country has been accompanies by the tougher competition among small, medium and large producers. The competition has been shown by the aggressive war of price, not just by small but also large companies. In order to be able to offer lower prices, many producers have resorted to producing thinner zinc coated steel sheets, below the minimum thickness required by SNI ie 20 mm. Previously this strategy was adopted by small producers who-wanted to aim for the low end market. Nowadays, the large producers are following suit in order to compete for the low end market segment.

Distribution System

Normally the distribution of zinc coated steel sheets from producers to consumers is done by distributors that also act as stockists. The most common distribution channel is from producers to distributors, to retailers and from retailers to consumers. As shown in the following diagram diagram /di·a·gram/ (di´ah-gram) a graphic representation, in simplest form, of an object or concept, made up of lines and lacking pictorial elements. .

In certain cases, producers can also directly supply consumers especially if the demand is substantial and for a certain period. This type of consumer is often referred to as a project. The direct supply from the factory is required by the consumer in order to guarantee continuous availability of material for example in the case of a long term project that is under implementation. Usually the transaction of purchase/sale is done through a contract for supply for a certain period.

The distribution channel from distributors direct to consumers is normally applicable for modest size projects for a period that is not too long. For projects like this, consumers can contact distributors to ensure that the supply can be guaranteed during the construction period

Procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases.  of raw material

The main raw material for zinc coated steel sheet is "Cold Rolled Steel Sheet" (CRC/S), which makes up 80% of the total production costs for this industry. Due to the important role of CRC/S, the industry is highly affected by the fluctuation Fluctuation

A price or interest rate change.
 of the price of CRC/S.

In the past, in order to protect the only producer of CRC (Cyclical Redundancy Checking) An error checking technique used to ensure the accuracy of transmitting digital data. The transmitted messages are divided into predetermined lengths which, used as dividends, are divided by a fixed divisor.  in Indonesia ie PT Krakatau Steel, the Government applied a high import duty tariff tariff, tax on imported and, more rarely, exported goods. It is also called a customs duty. Tariffs may be distinguished from other taxes in that their predominant purpose is not financial but economic—not to increase a nation's revenue but to protect domestic  of 22,5% including 7,5% surcharge An overcharge or additional cost.

A surcharge is an added liability imposed on something that is already due, such as a tax on tax. It also refers to the penalty a court can impose on a fiduciary for breaching a duty.
. Through several deregulation Deregulation

The reduction or elimination of government power in a particular industry, usually enacted to create more competition within the industry.

Notes:
Traditional areas that have been deregulated are the telephone and airline industries.
 efforts launched by the Government, in 1996, this import duty tariff was reduced to 5-10%. This has helped the zinc coated steel sheet industry considerably as the costs for purchasing the raw material could be lowered down. As we know, there are currently other producers of CRC, however, the second largest is PT Essar Dhananjaya Arjuna was the third son of Pandu and Kunti, who was begotten by Indra. One of his most important roles was as the dear friend and brother-in-law of Lord Krishna, from whom he heard the Bhagavad Gita. Arjuna is known by several other names.  which has a production capacity of 200.000 ton per year, still far below the 850.000 ton per year of PT KS.

Assuming that 0,964 ton CRC is required to produce 1 ton of zinc coated steel sheet,, the consumption of CRC by the industry reached 524.921 ton in 1997, 230.645 tons in 1998 and 250.467 ton in 1999.

Producers of zinc coated steel sheet normally buy their raw material directly from PT Krakatau Steel. This covered 64% of the total requirement in 1997 and 69% in 1998. The Producers of zinc coated steel sheets also have to import part of their CRC requirements due to the fact that certain specifications that are required cannot be supplied by the local producers.

It is also because the supply from the local producers cannot meet the entire demand. PT KS as the largest producer of CRC has also tried to step up export of CRC in order to gain from the depreciation of Rupiah which was the case up to 1998. Once PT KS even had to use the allocation The apportionment or designation of an item for a specific purpose or to a particular place.

In the law of trusts, the allocation of cash dividends earned by a stock that makes up the principal of a trust for a beneficiary usually means that the dividends will be treated as
 for the local consumers.

Table - 10 Procurement of CRC/S by producers of zinc coated steel sheets by source, 1998

(ton)
         Company               Total      Supply     Supply
                            Procurement   from PT     from
                                            KS        other
                                                    producers

PT Fumira                        82,275    58,082       9,248
PT Tumbak Mas                    13,535     2,215       2,023
PT Bisma Narendra                 1,026     1,026           0
PT BHP Steel Indonesia           28,822    17,444       9,168
PT Sarana Sentral B                 628         0           0
PT Industri Galvanael Mas        14,100     1,155           0
PT Intan Nasional Ind                --         0           0
PT Kerismas Witico               45,947    42,697       2,748
Makmur
PT Wira Mustika                      --         0           0
PT Kalimantan Steel Corp         15,271    15,271           0
PT Semarang Makmur                   --        --           0
PT Industri Baja Garuda              --        --           0
PT Sermani Steel                 19,280    12,875           0
PT Polyguna N                        --        --           0
PT Dharmaputra                    1,458     1,458           0
                                     --         0           0
Total                           222,342   152,223      23,187

         Company                Coil C    Import
                                Distri-
                                  tor

PT Fumira                             0    14,945
PT Tumbak Mas                         0     9,297
PT Bisma Narendra                     0         0
PT BHP Steel Indonesia                0     2,210
PT Sarana Sentral B                   0       628
PT Industri Galvanael Mas             0    12,945
PT Intan Nasional Ind                 0         0
PT Kerismas Witico                    0       502
Makmur
PT Wira Mustika                       0         0
PT Kalimantan Steel Corp              0         0
PT Semarang Makmur                    0         0
PT Industri Baja Garuda               0         0
PT Sermani Steel                      0     6,405
PT Polyguna N                         0         0
PT Dharmaputra                        0         0
                                      0         0
Total                                 0    46,932



Source: PT KS and field survey

In 1999, the role of the other producers beyond PT KS in supplying became stronger ie from 10% to 25%.

Table - 11 Procurement of CRC by producers of zinc coated steel sheets, 1999

(tons)
         Producers             Total     Total     PT KS
                               Prod

PT Fumira                      52,707    50,810    44,610
PT Tumbak Mas                  24,147    23,278    10,078
PT Bisma Narendra              13,586    13,097         0
PT BHP Steel Indonesia         57,695    55,618    41,218
PT Sarana Sentral Baja             86        83        83
PT Industri Galvanael Mas           0         0         0
PT Intan Nasional Indonesia         0         0         0
PT Kerismas Witico Makmur      67,359    64,934    54,434
PT Wira Mustika                     0         0         0
PT Kalimantan Steel Corp       19,113    18,425    17,425
PT Industri Baja Garuda             0         0
PT Sermani Steel                7,090     6,835     6,835
PT Polyguna Nusantara               0         0         0
PT Dharmaputera                 6,390     6,160     5,160
PT Harapan Sukses Jaya          1,357     1,308     1,308
Others                            414       399       399
Total                         250,359   240,947   181,550

         Producers              Oth     Coil C    Import
                               Manuf     Dist

PT Fumira                       6,200         0         0
PT Tumbak Mas                  13,200         0         0
PT Bisma Narendra              13,097         0         0
PT BHP Steel Indonesia         14,400         0         0
PT Sarana Sentral Baja              0         0         0
PT Industri Galvanael Mas           0         0         0
PT Intan Nasional Indonesia         0         0         0
PT Kerismas Witico Makmur      10,500         0         0
PT Wira Mustika                     0         0         0
PT Kalimantan Steel Corp        1,000         0         0
PT Industri Baja Garuda             0         0         0
PT Sermani Steel                    0         0         0
PT Polyguna Nusantara                         0         0
PT Dharmaputera                 1,000         0         0
PT Harapan Sukses Jaya                        0         0
Others                              0         0         0
Total                          59,397         0         0



Source: PT KS/and field survey.

Prospect

In Indonesia, zinc coated steel sheet is widely used for roofing and sliding (approximately 80%) and the remaining 20% for the other industries such as automotive, floor and decks, ducting and other industrial sectors. Under the circumstances CIRCUMSTANCES, evidence. The particulars which accompany a fact.
     2. The facts proved are either possible or impossible, ordinary and probable, or extraordinary and improbable, recent or ancient; they may have happened near us, or afar off; they are public or
, the future prospects for the zinc coated steel sheet industry will continue to depend highly on the fact whether or not the construction industry will recover in the near future

The GDP growth to the third quarter of 2000, has been quite encouraging at 4%, it is expected that it will reach 4.5% by the end of 2000.

According to observers, the property sector in general and housing in particular, will continue to grow starting from 2000 and will boom in 2004. The growth has been triggered by several factors. Firstly it is the fact that the interest rate for time deposits are no longer attractive, forcing investors to turn into the housing market. The other factor is the completion of the banking recapitalization Recapitalization

Restructuring a company's debt and equity mixture often with the aim of making a company's capital structure more stable.

Notes:
Companies often want to diversify their debt-to-equity ratio to improve liquidity.
 program that enables banks to resume the provision of credits.

The interest rate for house ownership credit (KPR KPR Kawartha Pine Ridge (Canada)
KPR Kansas Public Radio
KPR Kennewick, Pasco, Richland (Tri-cities Washington)
KPR Kentucky Performance Report
KPR Ketopantoate Reductase
KPR Korean People's Republic
) is now below 20 percent, encouraging people to buy houses. The basic assumption for the expected booming of the housing sector is the projection projection, in psychology: see defense mechanism.


See rear-projection TV, front-projection TV and LCD panel.

(theory) projection - In domain theory, a function, f, which is (a) idempotent, i.e.
 of inflation rate from 8 percent in 2000 to 7 percent in 2001. In addition to these, the economic growth is expected to reach 5 percent, an increase from the figure of 4 percent in 2000. With all the above positive factors, it is expected that the consumption of zinc coated steel sheet will be as follows.

Table - 12 Estimated Growth of Consumption of Zinc Coated Steel Sheet, 1999 - 2005(*)

(000 tons)
Year   Projected production  Growth rate (%)
               tons

2000           267                 15
2001           294                 10
2002           338                 15
2603           388                 15
2004           466                 20
2005           513                 10



Estimates

Source: Data Consult

Despite the prospect of increasing consumption of zinc coated steel sheet, however, it appears that the growth will not be significant enough to attract new investors into the industry, at least in the coming three years.

The existing producers are currently operating at 20-40% of their production capacity and they do not plan to increase the production capacity in the coming 2-3 years. Their expectation is that the next 2-3 years will enable them to increase the utilization utilization,
n 1. the extent to which a given group uses a particular service in a specified period. Although usually expressed as the number of services used per year per 100 or per 1000 persons eligible for the service, utilization rates may be
 of the production capacity ie to 70-80% per year. Only if this happens then they will think of expanding the production capacities.
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Comment:ZINC COATED STEEL SHEET INDUSTRY REINVIGORATED.
Publication:Indonesian Commercial Newsletter
Geographic Code:9INDO
Date:Nov 7, 2000
Words:4974
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