Wuhan Iron and Steel Corporation, China’s 4th-largest iron and steel maker, plans to invest up to $5 billion this year to build an integrated mill in Indonesia. The firm has carried out a feasibility study for the project and is now assessing the location to set up the mill, said Industry Minister MS Hidayat. The
Wuhan Iron and Steel Corporation, China's 4th-largest iron and steel maker, plans to invest up to $5 billion this year to build an integrated mill in Indonesia.
The firm has carried out a feasibility study for the project and is now assessing the location to set up the mill, said Industry Minister MS Hidayat.
The development of the integrated iron and steel mill by Wuhan will run along with the establishment of a 1,500-hectare industrial park, according to Hidayat.
Wuhan at present produces and distributes a wide range of iron and steel products, including hot-rolled plates, medium and heavy plates, heavy sections, high speed wires, steel rods, steel billets, as well as cold-rolled products.
Hidayat said it would take “a few years” to gradually construct the mill, which would produce up to 5 million tons of iron and steel products for various applications, including for the automotive and shipbuilding industries.
“The products will primarily be sold in the domestic market, thereby allowing us to reduce imports,” he added.
Demand for iron and steel has increased markedly in recent years thanks to robust development in the infrastructure and automotive industries.
Indonesia's steel consumption may rise by 8% on an annual basis to 20 million tons by 2020, offering enormous opportunities for new investment in the sector, according to the Indonesian Iron and Steel Association (IISIA).