PT Gunawan Dianjaya Steel Tbk (GDS) is currently building its second plate mill factory (GDS II plate mill plant) using allocated Capex (Capital expenditure) of IDR 24 billion. The new factory is slated to be completed by the end of 2023.
Founded in Surabaya in 1989, the company specializes in manufacturing hot rolling steel plate mills. GDS produces steel plates for general use, steel plates for boilers and pressure vessels, and steel plates for shipbuilding.
Increasing production capacity
GDS has spent the majority of its IDR 24 billion Capex on the new factory. Meanwhile, the total reserved Capex for 2022 is IDR 125 billion.
“The realization of Capex to date is IDR 102 billion to continue the completion of the GDS II plate mill plant expansion project and partly for the maintenance of GDS I plate mill and other assets,” GDS Corporate Secretary Hadi Sutjipto said, as quoted by Kontan.co.id, on October 10, 2022.
The second plate mill plant will have a production capacity of 1 million steel plates per year. Currently, GDS has an installed production capacity of 400,000 tons of steel plate per year and an additional capacity of 60,000 tons of steel plate per year.
Sutjipto said the company still saw a promising and potential prospect of steel plate production business. GDS is aiming for IDR 1.8 trillion in sales in 2022, as well as a 2% increase in net profit in the same year. The company is still focusing on domestic market while attempting to grow exports. It intends to increase its export market by adding Australia and New Zealand as new export destinations.
Rising steel industry
Market research report forecast a rise in the steel plates industry up until 2026. The increasing use of steel plates in automotive, construction and industrial sectors will drive market growth over the forecast period. Furthermore, the steel plate business will expand over the anticipated time frame due to booming steel demand and rapid industrialization.
Furthermore, the Asia Pacific countries’ large-scale urbanization and booming economies are expected to produce profitable demand for steel plates throughout the forecast timeline. Aside from that, the constantly developing building sector in countries such as China, India and Japan will fuel the boom of the steel plate industry throughout the projection time frame. Nonetheless, with the steel plate industry approaching saturation owing to the introduction of several new steel plate manufacturers and suppliers, market growth is expected to slow down during the projected period.
