Sebuku Group to build integrated steel industry

Sebuku Group plans to develop an integrated steel industry in South Kalimantan and East Java, with total investment estimated at US$1-2 billion, said Director General of Manufacturing Industry Base at the Ministry of Industry, Harjanto.

Harjanto was quoted by Investor Daily on Friday as saying that the construction of the integrated steel industry will be made in three stages.

In the first stage, the group will develop facilities including rotary dry kiln, coal upgrading station, and coal mill on Sebuku Island, South Kalimantan. In the second stage, it will develop a reduction plant, magnetic separation, power plant, and port at the same location.

?The projects are scheduled to be started in the third quarter of 2014, and to begin operation in the fourth quarter of 2016,? Harjanto said.

In the third stage, Sebuku Group will construct an electric arc furnace in East Java, a process expected to begin in the first quarter, and completed in the fourth quarter of 2017, to produce billets and other steel products, Harjanto said. (*)