Indonesian Aluminium extrusion producer “Indal Aluminium” to count on the potential export market for this year
PT Indal Aluminum Industry Tbk. (INAI), an aluminium extrusion producer has stated that this year it will expand the supporting product segment and continue to count on a more potential export market.
Alim Prakasa, Executive Managing Director, INAI, said: “In running the aluminium industry, the company is managing its business strategy quite carefully because unexpected situations such as the COVID-19 pandemic have resulted in several countries falling into recession.”
On 27th August’20, he said: "This condition also makes INAI revise its capacity expansion strategy plan, but we will still rejuvenate and add capacity with a period according to market needs.”
Previously the Managing Director commented that the company had a premium product with the Homelux brand. According to the plan, INAI will make a supporting industry, namely solar frame panel parts or solar panel equipment.
"We think the product has a very long economic life, considering that energy is an absolute necessity," he added.
Alim Prakasa acknowledged that the COVID-19 pandemic and also the trade war between the United States and China had caused a global crisis. However, it turned out that the company managed to seize the opportunity from the trade war.
"Demand for aluminium extrusion from the US and its supporting countries, which previously received supply from China, was forced to switch to other suppliers, including us, and from our experience in manufacturing customized products, we had no difficulty in meeting the demand for the export market," he explained.
Meanwhile, the realization of INAI's sales in 2019 was recorded at IDR 1.2 trillion. That number increased by 7.6% compared to the 2018 achievement of IDR1.1 trillion.
The company's sales during the H1 2020 were recorded at IDR 548 billion and grew 2% when compared to H1 2019 which was IDR 537 billion.
From the achievements in H1 2020, the contribution of the export market reached IDR 283 billion, an increase of 4.8% compared to the same period last year. Meanwhile, the contribution of the domestic market in H1 2020 was IDR 265 billion and decreased by 0.8% compared to H1 2019 which was IDR 267 billion. Construction and service sector has indeed contributed around 30-40% of those sales.
He concluded by saying: "However, we see that the absorption capacity of the domestic market has not yet recovered, so we expect the export market to continue to contribute more significantly this year.”
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