CILEGON (Indonesia Today) – Steel bar manufacturerPT Indo Ferro plans to increase its steel processing capacity in Cilegon, Banten to cover the increasing demand of pig iron, Bisnis Indonesia reported this morning.
Fadjar Suhendra, CEO of Growth Steel Group, holding company of Indoferro, said the capacity expansion will cost US$100 million.
He said Indoferro will boost its capacity of pig iron production to 1.1 million tons per year from current 550,000 tons and will double in early 2014.
Fadjar added currently the domestic consumption of pig iron reaches 500,000 tons per year. Indoferro also exports pig iron to some countries. “Taiwan has ordered nickel pig iron,” he noted.
The capacity expansion, Fadjar added, will be funded by syndiacted loan (70%) and company’s internal cash (30%). (hans@theindonesiatoday.com)