China’s Delong to build $950m steel factory in Morowali
CHINA’S Delong Holdings Limited plans to build a stainless steel factory in the Morowali Industrial Park in Central Sulawesi with an investment of around US$950 million, an official with the company said.
“The firm plans to develop a stainless steel factory with a production capacity of 3.5 million tonnes. The factory will help suffice demand in eastern Indonesia,” the Industry Ministry’s director general for metals, machinery, transportation and electronic equipment, Gusti Putu Suryawirawan, told reporters in Jakarta.
Morowali has facilities like ports, electricity and land for such investments. The 2,000 hectare industrial park already has a nickel smelter that will supply raw materials for steel factories. If realized, Putu said, Morowali would be Indonesia’s second steel factory complex after Cilegon in Banten.
Delong, through a circular letter dated June 12, stated its plan to form a joint venture named PT Dexin Steel Indonesia for the project.
Some 45 per cent of the shares will be owned by Delong’s subsidiary, Delong Steel Singapore Projects Pte Ltd, while 43 per cent will be owned by Shanghai Decent and 12 per cent by PT Indonesia Morowali Industrial Park.
“A feasibility study was com-|missioned by WISDRI Engineer-ing and Research in May 2017 in relation to the project. The venture will be principally engaged in the manufacture and sale of steel |bars, wire and slab,” the statement reads.