ASAHIMAS IN FACING THE OIL PRICE INCREMENT IN 2005 AND ITS EFFECT TO THE COMPANY BUSINESS

In 2006 Asahimas recorded net sales value of Rp 1.5 trillion or 10 % decreased compared to 2005. The increasing oil price was the culprit. Actually, the feasibility study to change the fuel for combustion process to natural gas had been done before 2005. Unluckily the increasing oil price advanced the progress of the project.

Then, early in 2006 the company established a task force team to continue the study of fuel conversion. The aim of the team was to reduce cost of production, the conversion should be done without loss of production, no materials in the flat glass process should be changed, and the project should be completed as soon as possible.

Despite the noble aim of the project, questions still remained for the management were : should they continue the conversion program ? Regarding the big value to invest, should they apply to all plants or not? What was the plan B if the conversion was done and the price of natural gas increased?