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High energy costs affecting Indonesian nylon yarn sector
Apr '17
Courtesy: Evershinetex
Courtesy: Evershinetex
High energy cost is one of the main factors affecting the Indonesian nylon yarn industry, besides a low demand compared to polyester, according to Michael Sung, general manager, Ever Shine Tex, an Indonesia-based textiles company.
Sung told Fibre2Fashion, "Gas prices in Indonesia are close to $9/MMBTU which is almost double than that of Singapore, the nearest neighboring country. Electricity in Indonesia is still very unstable as the total supply still falls below the actual demand that the country needs. Unfortunately, due to certain environmental requirements that prohibit factories in investing in coal power plants near residential areas, we have to use gas engines to supply the energy to our mills." 
Nylon is still considered as a niche synthetic product in the domestic market. "Indonesian customers are price sensitive and prefer polyester over nylon," he added.
The company operates the yarn division through its subsidiary PT Prima Rajuli Sukses, which manufactures nylon filament yarns, textured yarns, including air textured yarns and draw textured yarns,  twisted yarns, micron filament yarns, and high-stretch yarns. PT Prima Rajuli Sukses mostly supplies to Southeast Asia, the Middle-East, Europe and South America. (HO)
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