Indonesian 2007 Corrugated industry
Though at present the corrugated box requirement is growing steady in Indonesia, but the the corrugated box manufacturing has to be more efficient on their production. The ones not efficient enough with the production has to give up the business. 4 Corrugating companies has been closed or sold the last 3 years. Market The market is growth about 6% last year and estimated will growth about 8% this year. Therefore the last 3 years quite some new investment including new BHS (China), TCY, Hsieh Hsiu and Jer Yen. This year estimated there will be 5 new corrugated machines will be installed either for the expansion and new comer. Production Cost Production cost from electricity, solar, man power all are increasingly since last 3 years. Minimum labour cost increase about 30% last year, while gasoline increase twice and they will increase again by this year. Energy One of the effort to reduce the is by moving from Solar and Residue energy to coal which can cut their cost from about 1,5 – 2% less than 1%. This is a perfect solution for Indonesia as Indonesia have about 54 billion ton coal reserve and at present in Efficiency • • • • Residu Solar Gas Alam Batu bara 83-83% 85-87% 80-83% LHV 40,6 MJ/lt 36,6 MJ/Nm3 22 MJ/kg Price 0,36$/lt 0,18$/Nm3 0,04 $/kg Indonesia we only process 132 million ton coal, which 75% exported while locally mainly used for electricity (63%), cement (15%). Corrugated is only very very little percentage out or coal ritel business which just less than 1% of the local consumption. Paper price just like around the world with the shortage of the waste paper, the price is increasing tremendously, medium has reach US$ 500 and paper mill request from most of their customer payment in advance at present. Therefore only ones with strong cashflow will get better market share to the rest. In 2007, Indonesia produced about 2 million tonnes of corrugated boare and estimated will growth about 7 – 8% in 2008. 2 new paper...
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