ndonesia will see new strip capacity coming on stream next year, Kallanish notes. New Asia International is due to commence hot rolled coil production in the first quarter, and established steel producer Dexin Group in the third quarter of 2024.
Equipment installation at New Asia’s site at Sidoarjo in eastern Java is nearly completed, a company spokesman says. “We will start production no later than March,” he says. The new HRC mill will have an installed 1.5 million tonnes/year capacity and will be capable of producing 600-940mm width and 1.5-12mm thickness HRC.
There will also be an 850,000 t/y cold rolling mill – for 600-940mm width and 0.2-3mm thickness – and pickling and metallic coating lines. The plant will have capacity to produce 50,000 t/y each of black annealed and bright annealed strip, as well as 300,000 t/y each of galvalume and galvanized coil. The company will source its slab “worldwide based on quality and price”, the spokesman says.
The plant is located 40km from Surabaya city. A portion of the HRC that is not used internally will be sold. The company is planning a 70% domestic and 30% export sales strategy. It is 50% owned by Indonesia’s PT Java Pacific Indonesia, 40.5% by Xinya Metal Products and 9.5% by Tianjin Zhongzhong Technology Engineering Co.
Meanwhile, Dexin Group is currently installing its 4m t/y capacity hot strip mill and aims to start producing HRC in Q3 next year at its integrated steelworks in Morowali, Central Sulawesi. The company is not in a hurry to get the mill ready. “The overall market is slow,” a company source says. It will produce HRC of 900-1,600m width and 1.5-19mm thickness.
The leading ASEAN steel producer recently commissioned its third 1,780 cubic meter blast furnace and expanded its steel output from 4m t/y to 7m t/y in September. The mill’s products are slab, billet, wire rod, debar, with product ratio mix varying according to market demand. It is active in export markets for billet and slab, trading sources say.
