Gunung Steel, Nanjing Iron & Steel plan new steel plant in RI

Indonesia?s leading privately-held steel manufacturer Gunung Steel Group (GSG) and China?s Nanjing Iron & Steel are teaming up to develop a US$170 million steel plant in Indonesia with a total capacity of 1 million tons per year, Investor Daily reported on Wednesday.

GSG subsidiary PT Gunung Gahapi Sakti and Nanjing?s subsidiary Nangang have set up a 50:50 joint venture called PT Gahapi-NISCO Indonesia Steel Company to realize the planned project, the paper quoted a filing made by Nangang with the Shanghai Stock Exchange.

GSG could not be immediately confirmed. The steel plant will be developed in two stages, the first with a capacity of 500,000 tons with investment of $80 million will be completed in three years. It did not say when the construction will start. Construction of the second stage will start after the first stage has been completed.

?The agreement for the construction of a steel plant was signed on January 16, 2014 in Indonesia,? Nangang said in a stamen to the exchange. (*)