JAKARTA (TheInsiderStories) - Local steel producer, PT Gunung Raja Paksi Tbk (IDX: GGRP) is preparing an investment of US$850 million to build a steel plant, the company said today. At present, the company is building a $370 million project and targeted to be completed in 2021.
According to the spokesman, Budi Raharjo Legowo, for the second phase needs an investment of $480 million. The construction its expecting starting 021 and start to operating in 2023.
Last year, Gunung Raja Paksi announced that it would build a steel plant with a Chinese company at a cost of around $693.3 million and the partnership is expected to be effective in this year. The construction of this new plant aims to meet the domestic needs and for export purposes.
At present, the manufacturer’ sales are dominated by the domestic market and the rest is for export markets. Some export destinations are the Philippines, Malaysia, Australia and the United States.
Last year, Gunung Raja Paksi signed a memorandum of understanding with United States-based company, Hanwa American Corp., for the export of 50,000 million tons of steel bars. The steel producer based in Bekasi, West Java, is the first steel exporter in Indonesia.
Founded in late 2001, the company produces thin steel consisting of plates and coils. Currently the company’s steel production capacity is 2.86 million tons per year.
The company produced steel sheets consisting of plates and coils. In 2019, the producer listed on the Indonesia Stock Exchange last year. At that time, the company offered 1.23 billion shares and received fresh funds of Rp1.03 trillion ($72.03 million).
The majority of these funds are used to pay off debt in the context of the purchase of fixed assets and operating costs and for working capital. This steel producer initially produces hot rolled steel then continues to one of the new product lines namely steel beams. In early 2000s and produced a variety of hot rolled steel and steel plates.
Recently, the government has sought to increase the competitiveness and market share of Indonesia’ steel exports and to seek non-traditional markets such as Africa, South Asia, the Middle East, Eurasia and Latin America through negotiations and the initiation of free trade agreements.
US$1: Rp14,300
Written by Editorial Staff, Email: theinsiderstories@gmail.com
