Indonesian flat glass producer, Asahimas Flat Glass reported sparkling results for 1995. Sales at Asahimas went up 39% to 403.6 billion rupiah, while net income jumped 65% to 73.7 billion rupiah.
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Indonesian flat glass producer, Asahimas Flat Glass reported sparkling results for 1995. Sales at Asahimas went up 39% to 403.6 billion rupiah, while net income jumped 65% to 73.7 billion rupiah. Asahimas is a joint venture between the Japanese giant Asahi group and Indonesia“s Rodamas group. The largest flat glass producer in South-east Asia, Asahimas has a capacity of 420,000 tonnes/year, from three furnaces in Jakarta and Surabaya. Capacity will be boosted to 570,000 tonnes/year by 1997 when a fourth production line in Surabaya is completed. The company is now revising its business strategy to increase its competitiveness. Taking advantage of its access to proprietary technology from its Japanese parent, it will concentrate on high quality and speciality glass along with fabricated glass. Asahimas also makes commodity and figured glass for general building uses. In 1995, its sales mix was 46% cheaper commodity glass, 40% high quality and speciality glass and 14% fabricated glass. By 1998, the company plans to cut commodity glass to 37% of production and boost high quality and speciality glass to 38%, while fabricated glass production would rise to 25% of the total. The average price for commodity glass, in 1995, was 838,000 rupiah per tonne, while that of high quality and speciality glass was 1,002 rupiah per tonne. The fabricated glass price was 2,104 rupiah per tonne. Asahimas“ technology has already attracted the owners of Jakarta landmark buildings such as the Grand Hyatt, Shangri-La and Equatorial hotels, along with office buildings of Unilever, state bank BDN, electricity authority PLN and the Lippo group. The company“s glass has also been used in a number of luxury central Jakarta apartment buildings. In the next two years, Asahimas expects to boost sales to around 700 billion rupiah, a 75% rise. Fabricated glass is expected to net 41% of the total, high quality and speciality glass 34% and commodity glass 25%. The change in the product mix to more high value-added glass will produce a margin of more than 18%, Asahimas believes. The company“s net income for 1995 exceeded its conservative IPO forecast and its income estimates for 1996 have also been revised upwards as a result of firmer average prices for glass. Asahimas now expects its 1996 earnings to reach 96 billion rupiah, compared with a forecast of 85 billion rupiah in 1995. With car sales showing no signs of flagging and many office blocks and apartments under construction, demand for glass is set to maintain strong growth for some time in Indonesia.