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AKARTA: Indonesian tin producer PT Pelat Timah Nusantara (NIKL), popularly know as Latinusa, expects its tinplate production capacity to reach 130,000 tons this year, lower than its previous target of 160,000 tons.

Latinusa last year also failed to meet the target as its output only reached 100,000 tons of tinplate primarily due to a 40-day revamping or rejuvenating process of their machines that have been used since the 1980s.

“We did the revamping process in order to be ready to meet our initial production target of 160,000 tons. We can’t meet the target this year because we are currently in a learning curve period,” Latinusa president director Ardhiman said on Thursday.

Latinusa, a subsidiary of state-owned steel maker PT Krakatau Steel Tbk (KRAS), recorded a net loss of Rp 19.26 billion (US$2.09 million) last year, having posted Rp 74.58 billion in net profits in 2010.

The setback is also due to lowering demand for locally produced tinplate on 0 percent import duties imposed by the government and the global economic downturn.

“We are planning to enter a new segment this year — the battery industry. In the last few years, our focus has only been on the food industry. That is why we have to boost our production this year,”said Ardhiman, adding that the company wished to expand its market share to more than 50 percent this year.