Expansion Strategy in Polyacrylamide Industry from Organizational and Technological Perspective: A Case Study of PT SPI

Demand for polyacrylamide (PAM), has been much raised by the Indonesian government’s which now focusing on downstream mineral processing. Scaling up the company to produce PAM from 15 KTA to 100 KTA presents a significant potential and challenge for a division of SNF Group, a worldwide leader in water-soluble polymer manufacture. However, this raises complex problems requiring strategic reorganization and efficient application of advanced environmental technologies, especially Zero Liquid Discharge (ZLD). This research examines the organizational development necessary to effectively support its production capacity expansion, particularly addressing key challenges in workforce management, organization structure, and skill development. Additionally, the research explores strategic methods by which company can integrate advanced technological innovations, with primary focus on Zero Liquid Discharge (ZLD) technology. This aims to ensure environmental sustainability, maintain compliance with increasingly stringent regulatory requirements, and optimize operational efficiency during the expansion. Primary and secondary data sources were included into a qualitative method. Interviews with important managerial staff from other subsidiaries in China, Korea, India, and top executives from headquarters gathered the primary data. To evaluate internal and external environments impacting PT SPI’s expansion plan, the analytical framework used includes PESTLE, Porter’s Five Forces, VRIO, SWOT analysis, and the TOWS matrix. Based on this thorough study, strategic organizational restructuring is recommended, benchmarked by effective organizational frameworks of SNF China and Korea, implying a workforce scale-up from the current 38 employees to between 75 and 90 personnel. This research especially addresses the junction of organizational growth strategies and sustainability technology adoption in high-growth sectors, therefore greatly adding to strategic management expertise. Practically, the research results offer PT SPI and related companies in the specialty chemicals industry strategic direction and practical insights to help them properly and sustainably negotiate challenging expansions.