Industry Profie: Aluminium Sheet & Foil

MARKET INTELLIGENCE REPORT ON

ALUMINUM SHEET AND ALUMINIUM FOIL INDUSTRY

September

2009

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Main players in aluminum sheet industry

PT. Alumindo Light Metal Industry Tbk

PT Alumíndo Light Metal Industry Tbk. (ALMI) was established in 1978 and started operation in 1983. ALMI is a subsidiary of the Maspion Group, a large company group based in Surabaya, East Java. The Maspion Group has a number of business units including producers of household equipment such as thermostats, refrigerators, gas stoves, water pumps, fans, etc. The company group also has subsidiaries operating in the construction industry, material industry and property industry.

The beginning ALMI focused on producing feedstock for the Maspion Group, which produces various household equipment and aluminum foil as packaging material. In 1985, ALMI started expanding business producing aluminum products for the open market. In 1987, it’s started exports. Around 100 tons aluminum sheets were exported to Singapore.

In the first years of its operation, ALMI had a production capacity of 12,000 tons of aluminum sheet per year. Its product of aluminum sheets was used mainly as a basic material for kitchen utensils, household equipment, electrical appliances, and building materials.

PT. Indal Aluminum Industry

PT. Indal Aluminum Industry (Indal) was established in 1971 to produce aluminum sheets operating rolling mill, and extrusion plant. The company started commercial operation in 1974. Its aluminum sheet factory is located in Surabaya, East Java with a production capacity of 4,000 tons per year. Indal is a subsidiary of the Maspion group.

Currently, Indal is one of the largest aluminum producers operating an integrated facility. It received the certificate of ISO 9001:2000 for good quality recognized internationally. It has exported its products to various countries including Australia, other Asian countries and Europe.

PT. Starmas Inti Aluminum Industry

PT. Starmas Inti Aluminum Industry (SIAI) was established in 2001. This company built its aluminum sheet factory in Tangerang, Banten. Currently its production capacity for aluminum sheets is 36,000 tons per year making it the second largest producer of aluminum sheets in the country after ALMI.

PT. Indo Aluminum Intikarsa

PT. Indo Aluminum Intikarsa (IAI) was established in 1992 to operate in aluminum sheet industry. The company has a production capacity of 4,000 tons of aluminum sheets per year. Its factory is located in the Cibitung Industrial Estates in Bekasi, West Java.

Main players in Aluminum Foil industry

PT. Alumindo Light Metal Industry Tbk

In the first year of its operation in 1983, ALMI had a production capacity of 4,800 tons of aluminum foils per year. Its aluminum foil product is used mainly for packaging material. Later it’s expanded its production capacity to 15,600 tons of aluminum foils per year.

In 2009, ALMI plans to expand its production capacity for aluminum sheets to 20,000 tons per year to meet growing demand on domestic and international markets.

In order to improve its competitiveness in the world market, ALMI has established cooperation with a company in China having the same line of business Southern Aluminum Industry Co Ltd which has a production capacity of 40,000 tons of aluminum foils per year.

PT. Starmas Inti Aluminum Industry

PT. Starmas Inti Aluminum Industry (SIAI) has a production capacity of 10,000 tons of aluminum foils per year. SIAI operates an integrated facility producing aluminum sheets to feed its aluminum foil factory. With a production capacity of 10,000 tons per year, SIAI is the second largest producer of aluminum foils after ALMI.

Aluminum foils produced by SIAI consist of various types -- aluminum for food packaging material, aluminum tape, Rice Warmer Component, Aluminum Foil for cigarettes, Aluminum Foil for Flexible Food Packaging, Aluminum Foil for pharmaceutical industry, Aluminum foil for isolation and Aluminum Ducting

PT. Indo Aluminum Intikarsa

PT. Indo Aluminum Intikarsa (IAI) was established in 1992 to operate in aluminum foil industry. IAI operates an integrated facility producing also aluminum sheets as feedstock for aluminum foil. IAI produces aluminum foils used in various industries including cigarette, pharmaceutical and food packaging industries, roof insulation, cable coat and household equipment.

Production up

Aluminum sheets

In five year period of 2004-2008, the country’s production of aluminum sheets grew 3.4% per year – from 54,483 tons in 2004, to 61,920 tons in 2008. ALMI is the largest contributor to the country’s total production of aluminum sheet. ALMI produces aluminum sheets, aluminum foils, and aluminum roll forming building decoration and household goods from aluminum. See the following table

Aluminum Foil

In the period of 2004-2008, the country’s production of aluminum foil grew only 0.95% per year. The largest production of aluminum foil a year was 13,472 tons in 2005 up from 13,283 tons in 2004, but in 2006, the production fell 5.3% to 12,697 tons, and to 12,157 tons in 2007. In 2008, the production rose again 12.5% to 13,677 tons mainly on growing demand on the domestic market.

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