Iwatani Corporation completed its cryogenic air separation unit (ASU) which had been under construction in the premises of Iwatani Industrial Gas Indonesia (IIGI) and started a full-fledged operation from June this year. The production capacity of the new ASU made by Italian SIAD is 4000m3/h for both oxygen and nitrogen. IIGI has plants to fill oxygen, nitrogen, argon and carbon dioxide in Karawang Industrial Complex located 50km east of downtown Jakarta. There had been an open space of 10 million m2 in the premises of the plant and the ASU was completed on the land. Vice President Hisato Ueha of Iwatani said, “Further business expansion is promoted by us with a stabilized supply system through the operation of ASU.” In fact IIGI is carrying out sales activities to expand distribution to local companies.

President Hidekazu Sobue of IIGI said, “We have changed our sales strategy to emphasize upon our efforts to expand sales to local companies since last year, in addition to the sales development so far focused on the support and follow-up to the entering Japanese companies to the local market.”

Iwatani has many users of parts suppliers related to automobiles and motorcycles. In the past 90% of the users were Japanese companies. In Indonesia where the economy is growing with the expansion of domestic demand brought by personal consumption, sales of new cars will reach 1.25 million cars in 2013 supposedly overtaking Thailand which is the biggest market in Southeast Asia. Japanese companies mainly including part suppliers have been successively entering into the market.

However, consumer’s inclination cooled down since the change into the new administration in 2014 and the consequent discontinuation of purchase aid of gasoline, and the sales amount of cars decreased to 1.2 million cars in 2014 and 1.05 million cars in 2015. Affected by such movements, the capital investments or the entry of Japanese companies have turned out to be less active. President Sobue described the situation saying, “Gas supply amount stays at a low level and it followed that carbon dioxide for welding purposes decreased by nearly 20%.” With the movement as a trigger Iwatani went ahead with new developments to enhance expansion of sales to local customers with its local sales staff. Practically the company actively tackled to install storage tank of 1 to 3 tons so called “MICROBULK”.

This MICROBULK is capable to supply gas at a high pressure up to 3.5MPa. Proposing to convert from curdle or LGC supply of assist gases popularly used for laser processing before, more than 20 units were actually installed throughout last year. It is said that an overwhelming number of new tanks are installed for local customers at present and the local companies account for 40% of the customers.

At present a total of users exceeds 600, and the company has turned out to be so large having 160 employees. President Sobue said, “We plan to expand the gas distribution area from now on.” In practical terms, stock points are being provided in tie-up with the local gas distributors and the supply system is being enhanced for a wider range. He says in an aspiring tone, “Investments to the food and medical fields are so active thanks to the increase in population and personal income. We also would like to cultivate Non-Japanese or Non-automobile users.”