Hitachi Chemical to increase Powder Metallurgy production in Indonesia

December 11, 2013

Hitachi Chemical Co., Ltd. has announced that it will increase production capacity at its manufacturing subsidiary in Indonesia in order to meet increasing local demand for Powder Metallurgy (PM) products. Operations will begin in spring 2015 and Hitachi Chemical is aiming to increase sales for PM products for automobiles and motorcycles in Indonesia by 50%.

Indonesia has been exhibiting continued healthy growth in the motorcycle market. Meanwhile, with the large increase in demand for automobiles predicted to result from the government’s implementation of the Low Cost Green Car Policy in 2013, automobile manufacturers and auto parts manufacturers are moving to increase production capacity and work to procure parts locally.

Hitachi also announced that the name of the subsidiary has been changed from PT Hitachi Powdered Metals Indonesia to PT Hitachi Chemical Indonesia (HCID) with a view to future business expansion of the Hitachi Chemical Group in Indonesia.

HCID has been producing powder metal products mainly for motorcycles in Indonesia since 2012. However, the decision was made to increase its production lines within the premises of its already-existing plant in order to incorporate increasing demand with the growth seen in the automobile market.

Hitachi Chemical Group’s PM products bases have spread to Japan, the US, China, Singapore, Thailand, Indonesia and India. “We are working to expand our product supply network worldwide to meet customer needs and to reinforce and increase our powder metal product business,” stated Hitachi. 


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