Indoferro diversifies into slag cement amid nickel drop
Thursday, February 18 2016 - 12:54 AM WIB
The paper quoted Jonatan Handojo, Director of Growth Steel Group, Indoferro?s parent, as saying that the company has allocated US$35 million to build a cement slag production facility in Cilegon with total capacity of 2 million tons per annum, using byproduct of NPI production as raw material.
He said that the company is currently developing a slag cement plant with smaller capacity of 600,000 tons per year as pilot project, which is expected to start production in August of this year.
Jonatan said that demand for slag cement is expected to be strong as the government accelerates the development of infrastructure facilities particularly roads and ports.
He added that with a 600,000-ton per annum capacity, revenue from the slag cement production is estimated to reach about $75 million per year, compared to the estimated $70 million per year from its NPI smelter. ?Imagine if the capacity has reached 2 million tons,? he said.
He added, however, that the company will press ahead with the completion of its second NPI smelter in Cilegon despite the current drop in nickel price. As has been previously reported, Indoferro hoped to complete its second 250,000 tons per annum NPI smelter in March of this year. (*)