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Jakarta. Tsingshan Holding Group, a Chinese steel conglomerate, plans to build a carbon steel plant capable of processing 4 to 5 million tons of alloy per year at its plant in central Sulawesi, the Indonesian minister told reporters. Industry Airlangga Hartanto last week.
The project, which is estimated to cost between $ 4 billion and $ 5 billion, will be the group’s last expansion in Indonesia since 2014, when the Southeast Asian nation banned all exports of nickel ore, a mineral used in the production of stainless steel.
In addition to expanding their existing stainless steel pants, Tsingshan also said he plans to produce carbon steel [in Indonesia]. To this end, the company has requested the import of additional industrial equipment, â€Airlangga said after meeting with Chinese Ambassador and Chairman of Tsingshan Holding Group, Xiang Gangda.
Tsingshan is the key investor in Morowali Industrial Park Indonesia (IMIP), based in central Sulawesi. The company also operates a ferronickel processing plant capable of producing 500,000 tonnes of alloy per year through its subsidiary Sulawesi Mining Investment (SMI).
SMI’s nickel ferronickel content is recorded at 15 percent, bringing total pure nickel production to about 75,000 tonnes per year. Ferronickel is a raw material found in stainless steel, often used in pipes or common household appliances. Carbon steel, on the other hand, is made up of small amounts of carbon and iron and is often found in steel wires.
IMIP, established in 2015 by a consortium of Chinese and local investors, represents Indonesia’s most recent effort to extract the highest market value for its raw mineral exports.
Shanghai Decent Investment, a subsidiary of Tsingshan Holding Group, owns 66.25 percent of the total shares of IMIP, while Indonesian group Bintangdelapan controls the remaining 33.75 percent.
The Industry Ministry predicted that the industrial zone would attract nearly $ 6 billion in investment by 2019 and provide more than 100,000 jobs to residents of the surrounding region.
Currently, SMI is building a $ 62 million stainless steel slab plant capable of producing 1 million slabs per year, while IMIP is leading the construction of a 700 megawatt power plant, valued at $ 500 million.
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