Production of PT Betonjaya Manunggal TBK up 50%.
Producer of concrete reinforcing steel PT Betonjaya Manunggal Tbk., has installed a new production machine to increase its production capacity from 30,000 tons per year to 45,000 tons per year. Director of PT Betonjaya Manunggal Tbk. (BTON) Andy Soesanto said the new machine is to be ready to operate in the second half of the year with a production capacity of 15,000 tons of the basic material per year. The additional production is expected to be able to meet growing demand for concrete reinforcing steel to follow the government commitment to develop the construction sector. The increase in demand for concrete steel is partly caused by the law No. 3/2014 on warehousing industry validated on 5 January 2014 requiring an increase in the use of domestic products. Article 86 of the law says projects owned by the central or regional administrations financed with state/regional budget are required to use local products. The regulation is effective for state agencies or working units of regional administrations. State enterprises (BUMN), companies owned by regional administration (BUMD) and private companies with projects financed with government funds, are required to use local products. In January-April 2014, the company sold 4,313 tons of concrete steel, down 12.7% from 4,943 tons in the same period last year. Corporate Secretary of Betonjaya Manunggal Saiful Fuad said market slump caused a decline in sales in January-April 2014 to Rp33.5 billion , down Rp2.5 billion from the same period in 2013.