Dear for Biz Expansion
Hanwha Corp. struck a deal to extend the supply of half-finished non-electric detonators to Dahana, a government-run chemical company in Indonesia. This extension is expected to allow Hanwha Corp. to post about 68 billion won (US$59.1 million) in sales for up to seven years until 2023
“A non-electric detonator” ignites by using not electric power but sparks by fuses. Hanwha Corp. will supply half-finished products and Dahana will assemble and sell them in Indonesia.
Hanwha Corp. has steadily supplied high-quality products to the Indonesian market since signing the first supply deal in November 2012. This extension is attributable to the fact that the Indonesian market recognized Hanwha Corp.’s powder technology and product quality. This recognition enabled Hanwha Corp. to enjoy a 40% market share of the Indonesian non-electric detonator market, securing a stable business foundation.
In addition, both companies beefed up their business relationship to become strategic partners in the Indonesian powder market by signing an MOU on building a local production line in times of inking the extension deal on the supply of half-finished non-electric detonators.
These days, the Indonesian government’s policy to localize explosives accelerates Dahana’s local market share. With this deal as momentum, Hanwha Corp. will expand its mining service such as the blasting business in addition to the supply of explosives.