Fosun of China to build steel mill
Sunday, May 5 2013 - 03:46 AM WIB
Chinese company Fosun International Limited plans to build a steel mill in Medan , North Sumatra with capacity of about 1 million ton in cooperation with PT Gunung Gahapi Sakti, a subsidiary of PT Gunung Garuda.
Panggah Susanto, the director general of the manufacturing based industry at the ministry of industry, said in Jakarta on Friday that the blast furnace would be built in two units, which would each have capacity of 500,000 tons.
?Each unit will absorb investment of about $100 million,? he told reporters following a meeting with executives of the two companies.
He said that the smelting plant would source iron ore from West Sumatra and Aceh to produce slab and billet.
?The half-finished steel products will be used for automotive industry,? he said, adding that the Chinese company planned to start the construction of the steel mill this year. (*)