Latinusa?s tinplate sales volume drops in H1 due to plant revamping

Tinplate producer PT Pelat Timah Nusantara (Latinusa) Tbk said its tinplate sales volume drops to 51,639 tons in the first semester 2011, down from the same period last year of 57,370 tons, due to ongoing plant revamping process.

In the first semester, the company produced 57,991 tons of tinplate, little change from last year of 58,649 tons.

Director for Commercial of Latinusa, Suprapto, said that the decline was due to revamping of its plants which is being undertaken by the company. At end October until early December this year, the company?s plants will stop production to allow the installment of new machines. ?Therefore we are piling up products to secure sales for the remaining of the year.?

After the plant revamping process, the company?s production capacity will increase to 160,000 tons per annum, from 130,000 tons per annum in previous years. The company aims to raise next year?s production to 140,000 tons.

The company projects tin sales volume of 100,000 tons this year, compared to 106,000 tons last year.

Suprapto said the revamping process has also raised the company?s operating costs.

The company buys 100 percent of tin from PT Timah Tbk and sells all its output to domestic market. Tin plate is a raw material to produce cans. (giok)