Stainless steel output in Morowali to increase to 3m tons next year
Saturday, March 4 2017 - 06:18 AM WIB
Stainless steel production from the Morowali Industrial Park in Central Sulawesi is projected to increase to 3 million tons in 2018 from the estimated 2 million tons this year as a number of nickel-based smelters in the area plan expansion of capacity.
This was said by Minister of Industry Airlangga Hartarto in a statement issued on Friday following a meeting at his office with Chairman of China?s Tsingshan Holding Group, Xiang Ganda and China?s Ambassador in Indonesia, Xie Feng. Also attending the meeting were officials from the Bintang Delapan Group, PT Sulawesi Mining Investment (SMI), and PT Indonesia Morowali Industrial Park (IMIP). SMI, which is a joint venture between Bingtang Delapan and Tsingshan, operates an integrated nickel smelter and stainless steel industry at the Morowali industrial park.
?Aside from reporting about the stainless steel expansion, they also (said) want to produce carbon steel. For that, they requested for a number of incentive facilities.? Airlangga said in the statement.
He added that the companies have also requested for national vital object status for the Morowali Industrial Park to help ensure better security considering the huge investment being planned there.
?The investment (plan) is quite huge. For instance, investment in carbon steel production of 4-5 million tons per year is estimated to reach US$4-5 billion,? Airlangga said.
The statement cited data from IMIP, new projects at the Morowali estate for the period of 2017-2018 include stainless steel plant of SMI with 1 million tons per year production capacity of steel slab and investment of $62 million. SMi will also develop a 2x350 MW coal-fried power plant with investment of $500 million.
The ministry said that investment in the 2,000-ha Morowali Industrial Park is estimated to reach US$6 billion until 2019, with total direct employment of 26,000 people, and indirect employment of 80,000 people when the projects are realized.
Since 2015, SMI has started operating a ferronickel smelter in Morowali with capacity of 300,000 tons per year. The smelter is supported with a 2x65 MW coal-fired power plant. In 2015, the company produced 215,784.11 tons of nickel pig iron.
Since January 2016, a ferronickel smelter owned by PT Indonesia Guang Chiang Nickel and Stainless Steel Industry has started operation with capacity of 600,000 tons per year and supported with a 2x150 MW coal-fried power plant. Last year, the company?s output reached 193,806 tons. The company is currently conducting commissioning test of a stainless steel plant with capacity of 1 million tons per year.
Meanwhile, construction progress of a 600,000 tons per year ferronickel smelter and stainless steel plant with capacity of 1 million tons per year owned by PT Indonesia Tsingshan Stainless Teel has reached 60 percent. Also, construction progress of PT Indonesia Ruipu Nickel and Chrome?s chrome smelter project has reached 60 percent, and is expected to start production in early 2018.
Other smelters include owned by PT Broly Nickel Industry, which is also expanding production capacity.
Editing by Reiner Simanjuntak