Chinese steel firms plan $1.63b investments in C. Sulawesi
Monday, June 19 2017 - 02:39 AM WIB
Chinese steel firms Tsingshan Group and Delong Group plan to develop a carbon steel manufacturing plant in Central Sulawesi with total investment of about US$980 million.
The Indonesian Ministry of Industry said in a statement Saturday that the two Chinese firms on June 16 signed a MoU with PT Indonesia Morowali Industrial Park, which operates that Morowali industrial zone in Central Sulawesi, where the carbon steel plant, with production capacity of 3.5 million tons per year, will be located.
The statement said that Tsingshan had also signed a MoU with Indonesia?s Bintang Delapan Group for the development of a 700 MW power plant in the Morowali industrial zone with total investment of $650 million.
The statement said that the MoUs follow a May bilateral meeting between Indonesia?s President Joko Widodo and his Chinese counterpart President Xi Jingping in Beijing.
PT Sulawesi Mining Investment, a joint venture between Tsingshan and Bintang Delapan, last year completed a second nickel pig iron (NPI) smelter in Morowali with annual production capacity of 600,000 tons. The first smelter was completed in 2015 with annual capacity of 300,000 tons. The joint venture is currently developing a third smelter with capacity of 300,000 tons per year.
SMI also operates a 1 million-ton per annum stainless steel plant in Morowali, which absorbs the company?s NPI output.
Editing by Reiner Simanjuntak