INVESTMENT FEASIBILITY ANALYSIS OF STEEL DERIVATIVE PRODUCTS FABRICATION FACILITY IN PT X

• Main Author: Jayatama, Ferdian
• Format: Final Project
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/79521
• Institution: Institut Teknologi Bandung

The iron and steel industry is one of the strategic industries in Indonesia that plays an important role in providing the main raw materials for infrastructure development, production of factory machinery, transportation equipment, and national weapons. PT X is one of the leading steel producers in Indonesia that produces profiled steel and reinforcing steel products. The utilization of steel sections production capacity in Indonesia is still very low, at 55%. PT X's steel sections production capacity utilization is in the range of 8.57% to 38.77% for the last three years. The utilization of steel manufacturing capacity is quite good if the capacity reaches 80% (IISIA, 2021). Therefore, PT X plans to increase the utility of its production capacity by developing a fabrication facility for profile steel derivative products. The fabrication facility for PT X's steel sections derivative products was built using a ex-wire factory building. Researchers conducted product analysis and manufacturing process planning for five derivative products of profile steel, namely honeycomb steel beam, cell form castellated beam, T-beam, king cross, and queen cross. The layout with a length of 147 meters and a width of 18 meters is designed for a maximum capacity of 14,071.00 tons per year for profile steel derivative products by 2031. The investment in the fabrication facility for PT X profile steel derivative products is feasible with an NPV value of Rp65.678.543.225,58, an IRR value of 29.93%, and a PBP value of 3.47 years, where PT X pays installments equally from the sum of the principal and interest every year.