Indoferro expects second NPI smelter to start operation in April

By Thomas Sembiring

Indoferro

PT Indoferro said operation of its second nickel pig iron (NPI) smelter in Cilegon, Banten Province, has been delayed again to April 2017 from earlier target of December of this year.

Indoferro initially targeted the NPI smelter, with capacity of 250,000 tons per annum, to start operation in March of this year, but postponed it to December due to regulatory obstacles in the hiring of foreign workers for the project.

Once the second NPI smelter starts operation, the total capacity of the company?s NPI smelter will double to 500,000 tons per year.

Jonatan Handojo, Director of Business Development at Growth Steel Group, the parent of Indoferro, told Petromindo.com on Monday that while construction progress of the second NPI smelter has reached 90 percent, operation will only start in April of next year.

He said that the company is still waiting for the shipment of the required electronic control equipment for the smelter. He said that the equipment had actually arrived, but the company had to return the equipment to the vendor as it was not in accordance with the specifications set in the contract. ?It is expected the second NPI smelter to start operation in April of next year,? he said.

As has been previously reported, Indoferro has assigned Maanshan Maishirdi Engineering Consulting Co Ltd (MMC) as the contractor for the construction of the second smelter.

The output will be entirely exported to China, India South Korea, Taiwan and Turkey amid lack of domestic demand for the stainless steel production material.

Editing by Reiner Simanjuntak