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China to Construct Largest Steelworks in RI

19 March 2014 20:20 WIB

TEMPO/Dasril Roszandi

TEMPO.CO, Jakarta - China’s fourth largest steel maker Wuhan Iron and Steel Group [Wisco] plans to establish a steel mill in Indonesia.

Industry Minister Muhammad Soleman Hidayat said Wisco would invest US$5 billion or equal to Rp56.6 trillion. “They hope the project can kick off this year,” Hidayat said at his office on Wednesday, March 19, 2014.

The minister has met with Wisco CEO Deng Qilin, Finance Deputy Director Zhu Yonghong, Planning Director Chen Qingguan, and RED Capital Group chief Ngai Michael, who would finance the Wisco investment.

If the plan proceeds, Wisco’s steelworks will become the largest one in Indonesia with a production capacity of five million tons annually. Hidayat said the planned steel mill could become a solution to the nation’s rising iron and steel imports. Presently, Indonesian iron-steel producers can only meet six million tons or half of the total national demand that stands at 10 million tons annually.

Hidayat said Wisco would team up with Sinar Mas Group as its local partner. “They will establish a joint venture,” Hidayat said. 

PINGIT ARIA



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