Gunawan seeks to expand export market

IDX-listed steel maker PT Gunawan Dianjaya Steel Tbk is seeking to expand its export market particularly in Southeast Asia, eying the Philippine and Sri Lanka steel markets, Kontan reported on Tuesday.

The paper quoted Gunawan Director Hadi Sutjipto as saying that the company needs to expand the export market to take advantage of the current drop in the value of the rupiah against the US dollar, and amid the massive inflow of cheaper products from China in the domestic market.

Hadi, however, acknowledged that expanding to markets in the Philippine and Sri Lanka would not be easy as the two countries will also try to protect their local markets.

Export currently accounts for only about 10 percent of Gunawan?s total revenue. Singapore accounts for about 90 percent of the company?s export.

Elsewhere, Hadi said that performance this year may remain subdued as the government has yet to take protection measures against the massive inflow of cheaper products from China, which has been accused of committing dumping practices. The domestic steel industry currently accounts for only about 12-13 percent of the 17 million tons of annual demand at home. Gunawan focuses on steel plate products. (*)