Fuhai Group, a well reputed Multinational Corporation has stepped forward to invest $1.2 billion in steel mill of Jambi province helping in filling up the supply gap of steel in Indonesia.
The investment will be spent in a land of Ujung Jabung district which will encompass with a steel mill, port, offices and power plant. The working over the project has been started from past week, and is likely to hit the target by the end of 2016, as stated by Lizhi Zhao, the Fuhai Group chairman.
In Jakarta, after having words with R. Sukhyar, a director general of minerals and coal, Zhao expressed, “Indonesia is a good destination for investment in terms of potential economic viewpoint.” The government is showing a positive gesture in supporting the cause, as Indonesia is a big market and also have shortage in steel supplies, said Zhao.
Sukhyar reported, currently, the national steel production has the capacity to produce 4 million metric tons annually and was outpaced by the demand of 12 million metric tons. Therefore, the steel produced with the support of Fuhai group will be exploited for domestic market.
Pig iron, nickel and other raw material will be supplied to steel mill that will be extracted from Java and Sulawesi. The time when steel mill will be fully operational, it will chip in 1.75 million metric tons of steel production to enhance the national production capacity per year, Zhao stated.
