Indonesia’s Latinusa gained from lower imports, higher tinplate demand
PT Pelat Timah Nusantara (Latinusa), Indonesia’s sole tinplate producer, has benefited from both an increase in domestic demand for the product and lower import volumes in 2013.
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Tinplate imports dropped to 84,762 tonnes last year from 95,601 tonnes in 2012, while local consumption increased by almost 12% to 230,091 tonnes, Latinusa said in a March 26 market presentation which it recently filed on the Indonesia Stock Exchange (IDX).
With the company selling 145,329 tonnes in 2013 – up by nearly 32% from 110,258 tonnes in the previous year – its domestic market share has increased to 63% from 53%, according to the presentation.
This pushed its sales revenue up by 22% last year, to $172.46 million.
Latinusa, which sells tinplate in coils and sheets mainly for the packaging needs of food and milk manufacturing customers, can produce as much as 160,000 tpy at its plant in Cilegon, in western Java.
Following an initial public offering and its listing on the IDX in December 2009, the company saw a majority 55% stake being acquired by a consortium of Japanese companies led by Nippon Steel & Sumitomo Metal Corp (NSSMC).
NSSMC owns 35% of the tinplate producer, followed by Mitsui Co with 10%, and Nippon Steel & Sumikin Bussan Corp and Metal One Corp with 5% each. Indonesia’s state-owned steelmaker PT Krakatau Steel owns a 20.10% stake.
In 2013, Latinusa reported a turnaround in operating profit to $3.08 million, from losses of $6.75 million in 2012 and $1.71 million in 2011.
It posted a small net profit of $278,000 after two consecutive annual net losses, which were affected by strong import figures.
Indonesia’s finance ministry recently imposed anti-dumping duties on tinplate imports from China, South Korea and Taiwan, following a petition lodged by Latinusa.