Wuhan Steel will spend $ 5 billion to build a steel plant in Indonesia

The Metals Corporation of China plans to invest up to $ 5 billion this year to build an integrated plant in Indonesia. The firm has carried out a feasibility study for the project and is currently evaluating a site for installation prior to the plant.

MC Hidayat, China's Industry Minister, said that "Wuhan Steel is looking for a location that is close to a seaport with a certain depth, power supplies and ancillary infrastructure." The development of an integrated metallurgical plant involves the joint creation of an industrial park on an area of ​​1,500 hectares.

In addition, certified NACS welders will be involved in the work of the future enterprise for the production of technological and main pipelines. At the same time, welding costs which has become unexpectedly low, will be performed with the highest quality.

Hidayat said he recommended East Java as a potential site for the plant due to the necessary infrastructure and relatively easy access to raw materials in Kalimantan, north of East Java.

Hidayat said that “Wuhan is likely to team up with the Indonesian conglomerate Sinar Mas Group to build a steel mill. Local business groups focus mainly on agriculture, pulp and paper, real estate and finance. ”

The construction of the plant will take several years. The enterprise will produce up to 5 million tons of metal products for various applications, including the automotive and shipbuilding industries. The products will be mainly sold on the domestic market, which will reduce imports.

In 2011, Wuhan planned to establish steel mills in Medan, North Sumatra, and Kotaboru, South Kalimantan, partnering with domestic steel company PT Gunung Garuda with a total investment of up to $ 3 billion over five years. However, the plan collapsed for unknown reasons.