01/05/2007, 00.00
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Aluminium industry crushed by Chinese competition

80% of aluminum casting producers in Yogyakarta are on the brink of collapse: they are calling for protectionist measures and facilitated bank loans.

Jakarta (AsiaNews/Agencies) – Small producers of aluminium objects in Yogyakarta are on the brink of collapse, crushed by unbeatable Chinese competition. The industry, which produces mostly pots, pans and woks, has called on the government to enact protectionist measures and on banks to facilitate bank loans.


The chairman of the Yogyakarta Aluminum Casting Association, Beni Hendra, urged the government to study ways of containing the crisis. "Our products, such have lost in competition with Chinese products due to their cheaper prices. This needs serious attention from the government," said Beni.


He said local aluminum casting companies were hard pressed to expand because they found it difficult to get bank loans. As a result, 80% of the 65 companies in the area are on the brink of collapse. "We hope bank loan procedures will be simplified so that we can expand our businesses," said Beni.


Yogyakarta Governor Sri Sultan Hamengkubuwono X recently allocated US,000 to revive the industry. On that occasion, he encouraged aluminum casting producers in Yogyakarta to continue improving their quality, for example by using technology to optimize the production process. But some say the government should hold formation programmes for workers of the sector, which will made them capable of competing in terms of know-how and abilities on the global market.

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