Dexin to start construction of carbon steel plant next year
Tuesday, September 19 2017 - 01:15 AM WIB
PT Dexin Steel Indonesia is expected to start early next year construction of a carbon steel plant with annual capacity of 3.5 million tons at the Morowali Industrial Zone in Central Sulawesi, news portal bisnis.com reported on Monday.
Hamid Mina, Managing Director of PT Indonesia Morowali Industrial Park (IMIP), which operates the industrial zone and a co-owner of Dexin, said that construction will start once the required permit from the Investment Coordinating Board (BKPM) has been issued.
He said that construction will take around 1.5-2 years to complete. China?s Delong Holding Limited and Shanghai Decent are the other co-owners of Dexin.
Hamid said that the carbon steel plant will help reduce Indonesia?s reliance on import of carbon steel products to meet domestic demand, which according to the Ministry of Industry stands at around 12.94 million tons per year, while domestic manufacturers could only supply around 6.8 million tons per year.
To support the planned carbon steel plant, a new 2x350 MW coal-fired power plant will be developed at the industrial zone, where a combined 1,130 MW power plants have been developed since 2013. (*)