Indoferro plans another US$150M worth second stage expansion
Monday, October 8 2012 - 05:47 AM WIB
It plans to construct coke making plant and accompanying 2x15MW power plant, having received US$150 million worth of loan from Indonesia Exim Bank, in addition to US$15 million worth of capital loan and interest during construction.
Indoferro projected to produce up to 400,000 tons of coke per annum. It is currently importing 60,000 tons of coke from Japan to support its two month pig iron and nickel pig iron production.
"We will have another blast furnace imported from China, expecting it to start operation next year," Jonatan Handojo, Business Development Growth Steel Group said to reporters during a recent site visit, adding that the company currently operates a unit of blast furnace with the installed capacity of 550,000 tons per annum.
On the second stage, the company expects to spend US$150 million, to construct another similar facility, making a total of US$350 million worth of capital expenditure to produce 1.1 million tons of pig iron, 600,000 tons of coke powered by its own 2x15MW power plant.
It employs 400 workers now, expecting to hire 800 more upon project completion.
Indoferro, known to focus its product for export, recently completed an initial shipping test of 300 tons nickel pig iron to Taiwanese steel producer Walsin Lihwa.
?Various companies from Malaysia, Thailand and Posco South Korea have stated their interests to our products," company president director Radius Suhendra said.
The company didn't say when it expects to complete the project.(*)