Indonesian based HK Metals Utama to prioritize on Aluminium extrusion market

PT HK Metals Utama Tbk (HKMU) will focus its business on the aluminium extrusion, as it sees the business potential that grows along with changing habits during the COVID-19 pandemic.

Jodi Priyono, Corporate Secretary, HK Metals Utama said: “This year the aluminium building materials sector is experiencing challenges that have never been imagined before, namely being hit by a pandemic and more or less the threat of an economic recession.”

"The company focuses on several strategic points. First, it continues to strengthen its aluminium business line by focusing on extruded aluminium production lines, in this case seeing that demand is still better than other building materials," he explained in a virtual public expose on 24^th August’20.

Jodi further said: “With the increase in social distancing and changes in habits, in the future architectural designs of rooms will tend to require bulkheads and air circulation. As for accommodating the bulkheads and window frames for air circulation, extruded aluminium is needed. Therefore, there will be an increase in demand. “

The second strategy, HKMU will focus more on the midstream and downstream segments of aluminium, where HKMU focuses on fabrication and manufacturing activities. Jodi assessed that this process has a good margin structure so that it can increase business margins.

More specifically, HKMU's strategy focuses on the market share of extruded aluminium for building and construction materials such as high-rise and residential buildings with end products such as doors, windows and window frames, panels, and other products.

On the other hand, Jodi also saw the threat of distortion in the logistics and distribution process due to the Corona pandemic. Therefore, HKMU will also reach customers with a touch of digitization.

Last strategic pillars namely HKMU will add value-added products, which will provide better margins. "We are trying to find products that vary in colour, model, and others. The availability of value-added products can reduce the remaining waste so that optimization can be done," said Jodi. 

Yudhi Sudarmanto, Commercial Director, added: “Aluminium demand is projected to continue to increase in general, driven by economic growth in the Asian region.”

"The demand for aluminium will be supported by increased applications in the transportation sector, in line with the global commitment and transportation industry players, to increase the production of NEV (New Energy Vehicles) used as electric vehicles," he explained.