Feasibility Analysis on the Development of Steel Sheet Zinc Plated and Galvalum Production Factory PT. S Steel

Abstract

PT. S Steel is a company producing zinc coated steel sheet (BJLS). The company runs from 1969 and is a joint venture company with Japan. The current production plant is located in an urban area, and the government of Makassar issued a government regulation in which the factory should not exist in the city area. So that PT. S Steel will build its new production plant in the industrial estate. In this feasibility study will be discussed about the construction of production plant PT. S Steel is reviewed in terms of market, technical aspects, legal and environmental aspects, as well as financial aspects. Market aspect analysis is done by using interview and historical data as reference. In the market aspect it is known that the amount of demand from zinc continues to decline while the galvalume rises as a new trend. Technical aspects analysis resulted in the output of facility layout and financial aspect analysis calculated based on calculation of NPV, BCR, and PBP with projection for 5 years period. financial analysis was assessed from several eligibility criteria, namely NPV with value Rp 487,404,605,133 and said to be feasible because NPV> 0, IRR 48.703% and said to be feasible because IRR> MARR 11%, and PBP worth 2.34. This feasibility study shows that the implementation of the construction of PT. S Steel is feasible to operate.