It is reported that Growth Steel Group is ready to invest USD 980 million to build pig iron plant and coke in Cilegon in Banten.
Mr Jonathan Handojo business development at Growth Steel Group said that "So far, the national steel industry to import pig iron to produce steel. We hope that imports could be reduced in the presence of our factory."
He explained that the pig iron plant is handled PT Indoferro, while the coke factory managed by PT Indocoke Industry. According to him, construction of the plant is divided into three stages.
For the first phase, the plant capacity Indoferro reached 500,000 tonnes a year. While in the second stage, Indoferro will start producing finished goods consist of a long product deform steel bar and plate capacity of two million tonnes a year.
In the third stage, the capacity of pig iron was increased to one million tonnes and finished goods of four million tonnes a year. The plant also produces a slag of 400,000 tonnes a year.
He said that "Commercial production Indoferro first phase scheduled to take place in November 2011, while the second stage of commercial production scheduled for the second half of 2013 and the third stage of the second half of 2105."
For the coke plant, he stated, the first stage of the plant capacity of 150,000 tonnes. While in the second and third stages kapasitanya targeted to reach 300,000 tonnes and 600,000 tonnes a year. Production is scheduled to premiere took place in December 2011. The second and third phases are targeted production in June 2012 and December 2013.
He said that "Investing in early stage Indoferro reached USD 180 million, the second phase of USD 205 million and the third stage of USD 405 million, bringing the total to USD 800 million. While the total investment Indocoke first stage until the third to reach USD 130 million."
Sources of investment funding to be met from internal cash while the company. Furthermore, the company will seek a foreign partner or hold an initial public offering of shares to finance investment.
(Sourced from www.metrotvnews.com)
