South East Asian Glass Tableware Producers (Part 1) South East Asia Has Emerged As a Major Powerhouse for Glass Tableware Production in Recent Decades
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FOCUS ON ASEAN South East Asian glass tableware producers (Part 1) South East Asia has emerged as a major powerhouse for glass tableware production in recent decades. The development of a sizeable, local middle class and rising purchasing power have been pivotal, in addition to which, the region has become an important exporter to Europe, the Americas and the rest of Asia. In the first part of a two part article, freelance correspondent Sunder Singh discusses the industry’s main producers in Indonesia. Published in the next issue of Glass Worldwide, part two will highlight the activities of producers in Thailand. Asia Pacific leads the global glass large and medium-sized producers, tableware industry in terms of share with the country becoming one of of global production and consumption. the most important manufacturing The region holds an estimated 32% hubs for global retail giants. According share of the world market on account to a recent report by the Indonesian of its high population, the improving Director General of National Export per capita income of consumers and Development, the country is the rising disposable incomes. Local world’s 10th largest exporter of glass glassmakers are expected to acquire tableware products on a value basis. In a share of about 40% in the next five addition to producing under their own years as urbanisation and disposable brand names, Indonesian producers income continue their upward pace. account for a significant production for Countries like China, Thailand and leading global brands as OEMs. Indonesia have become the most The country, however, still has to important hub of glass tableware improve the quality of its glassware to sourcing for a number of western match or surpass items manufactured retailers and supermarkets. A number by European producers. Although of producers are also OEMs for a Indonesian producers have successfully series of established glass tableware exported to many countries, large brands. Apart from huge exports from volumes are sold primarily to such Asian the region, a growing middle class countries as Japan, Vietnam, Malaysia, is making a huge contribution to the the Philippines and India where, with industry’s growth. Their increasing the exception of Japan, quality is often purchasing power, expanding not the highest priority for consumers. Indonesia accounts for more than 35% of glass tableware production in South opportunities to spend money and And in a setback to the Indonesian East Asia. improving per capita income have glass tableware industry, one of the triggered local demand. most important export destinations, KEDAUNG INDUSTRIAL GROUP Brazil extended anti-dumping duties on PT Kedaung Industrial Ltd (KIG group) is the largest glass LEADING THE WAY tableware imports from the country for tableware producer in Indonesia and is counted among South East Asia’s leading producer of a period of five years last December. the world’s largest. The group, which is an unconsolidated glass tableware in South East Asia, Indonesian tableware imports in Brazil federation of approximately 30 small and medium size Indonesia accounts for more than are taxed at $0.15/kg, although this is enterprises, has an installed capacity of 1650 tonnes/day, 35% of the region’s production. The much less than Chinese imports, which producing about 6000 different types of tableware from its industry involves more than a dozen are taxed at $1.70/kg). 120 lines. Company Location Production capacity Kedaung Industrial Group Cikande 850 tonnes/day unconfirmed and only in Indonesia. Has closed down Malaysia, China and Semarang (Indonesia) plants PT First National Glassware Pulo Gudang Industrial Estate, Jakarta 240 tonnes/day PT Culletprima Setia (BBC Glass) Banten 200 tonnes/day PT Kwarsa Indah Murni (KIM Glass) Tangerang 180 tonnes/day PT Pasir Sari Raya Industri Tangerang 160 tonnes/day PT Mega Indah (Migi Glass) Banten 90 tonnes/day PT Opal Indah Dki Jakarta 120 tonnes/day PT Kemasindo Ampuh Gunung Putri Bogor 195 tonnes/day PT Ishizuka Maspion Surabaya 120 tonnes/day Inti Bali Glass Bali 80 tonnes/day PT Istana Kudus Kudus 60 tonnes/day PT Citinova Tangerang 40 tonnes/day Glass tableware producers in Indonesia. Visit the AFGM library of articles: 60 GLASS WORLDWIDE > issue seventy two 2017 www.glassworldwide.co.uk FOCUS ON ASEAN www.xparvision.com KIG Group exports about 60% of its output to customers in North PT CULLETPRIMA SETIA and South America, Europe, the Middle East, the Pacific and Oceania Since its establishment in 1992, PT Culletprima Setia has grown regions, as well as Africa. The company reports that investment in to become one of South East Asia’s best known glass tableware state-of-the-art technology has helped to accommodate increasing producers. The company’s BBC Glass brand has one of the highest demand for quality products from a number of clients such as Wal- recalls among consumers. Rising demand in domestic and export Mart, Woolworth, IKEA, Carrefour, Dollar General, Hero, Matahari and markets prompted the company to expand its business from one Lotte Mart. factory to two, capable of producing 200 tonnes of glass every day. The group’s main producing facilities are PT Kedaung Industrial Ltd, Located at Kawasan Industri Pasir Jaya, Tangerang, these two located at the Langgeng Sahabat Industrial Estate in Cikande, Banten; production facilities supply a large percentage of coloured tableware PT Kedawung Subur, located in Rungkut Industrial Estate, Surabaya, sold in the domestic market. The company claims that one of its East Java; and PT Kedawung Surya Industrial and PT Kedaung Medan main selling points is the individuality brought via the rich colours Industrial Ltd, both located in northern Sumatra. available for each glassware series. “Currently, we hold an 80% In addition to its Indonesian production facilities, KIG established market share in coloured glassware” a spokesman confirmed. two manufacturing plants in Alexandria and Cairo, Egypt in 2009. The company’s management has expressed its intention to Egypt was chosen because of its strategic proximity to the important set up another manufacturing facility close to its existing facilities markets of the Middle East, Europe and the USA. in the near future. However, it declined to comment on the timeline for this proposed expansion. PT THE FIRST NATIONAL GLASSWARE Established in 1971, PT The First National Glassware (FNG) has two PT KWARSA INDAH MURNI production facilities in the eastern part of Jakarta at Pulo Gadung Known for its KIM Glass brand, Indonesian company PT Kwarsa Industrial Estate. In 2015, FNG decided to concentrate on quality Indah Murni is also among the region’s leading producers. glass, adding more equipment to achieve this aim and reducing output Founded in 1990, the company has an installed capacity of levels. This involved decommissioning one 85 tonnes/day furnace and 180 tonnes/day, with a customer base extending from giant reducing daily production levels to 240 tonnes/day. retail companies such as Wal-Mart to wholesale distributors in Prior to this adjustment, in 2015 FNG operated three furnaces domestic and export markets. The company claims to export to and 17 production lines but today, two furnaces and 13 lines are more than 30 countries throughout the world. maintained. The company produces approximately one million items daily under the FNG brand, which is distributed to more than 50 PT ISHIZUKA MASPION countries. Established in 1996 as a joint venture between Japanese company Ishizuka and Indonesia’s Mapison Group, PT Ishizuka Maspion Indonesia (IMG) commenced commercial production in 1998. Maspion Group is among the world’s largest durable goods producers. The company has strong expertise in manufacturing a wide range of houseware items from glassware, kitchenware and plastic houseware, to electrical home appliances. Located at Altap Industrial Estate in Gresik (east Java), the company has an installed capacity of 120 tonnes/day, with plans for expansion in 2017. Supported by state-of-the-art machinery and modern facilities, PT Ishizuka Maspion Indonesia is recognised as one of Indonesia’s largest producers of high quality glass tableware. The company has an established and extensive distribution network both domestically and internationally through its distributors, agents, retailers and representatives in major cities in Indonesia and major export markets. Besides supplying under its brand name, the company is a well-respected OEM player in the glass tableware industry, supplying to a number of retail stores and wholesalers around the world. PT KEMASINDO AMPUH Since commencing production with a 60 tonnes/day capacity furnace at Kapuk in 1999, Kemasindo Ampuh has emerged as a key player in the Indonesian glass tableware business. The original plant was shut down in 2006, when Kaema shifted its production to Bogor and expanded its capacity to 200 tonnes/day in clear and green compositions from two furnaces. Another 45 Bright ideas. Better glass. tonnes/day furnace for clear glass products was commissioned at a different site in Bogor in 2009. ACKNOWLEDGEMENT Thanks are extended to the Indonesia Glass Manufacturers Association and its members for assisting in the compilation of this report. FURTHER INFORMATION: email: [email protected] Visit the AFGM library of articles: 62 GLASS WORLDWIDE > issue seventy two 2017 www.glassworldwide.co.uk XPR1009_Adv_corp_A4_fc.indd 1 09-02-12 11:37.