Indoferro seals $120 million sales contract

PT Indoferro, a subsidiary of Growth Steel Group has secured contract worth US$120 million (Rp 1.15 trillion) for the sales of alloy pig iron to one of Taiwan-based steel , Walsin Lihwa Corp next year.

?Next year, we will sell between 100,000 and 120,000 tons to Walsin, at prices of between US$800 and $1,000 per ton. The total sale value is expected to reach between $100 and $120 million,? Indoferro?s CEO Fadjar Suhendra said following the signing of the sales contract with Walsin in Jakarta on Wednesday.

Fadjar said that his company had secured a 30 years contract from the Taiwanese company. ?But in the long term, they will also plan to build a factory in Indonesia,? he said.

The demand for alloy pig iron, the main raw material for steel production, from Taiwan continued to increase every year because the country did not have any smelters. About 50 percent of Indoferro?s alloy pig iron are exported to Taiwan.

In addition to Taiwan, Indoferro also exports its production to India and Spain. ?In addition to providing alloy pig iron for Tata Steel in Indonesia, the company also supplies a steel company in Spain,? Fadjar said.

Indoferro produces about 250,000 tons of alloy pig iron a year.(*)