Japanese steel trader Hanwa buys 10% stake in Chinese steel venture in Indonesia
JAKARTA, NNA – Japanese steel trader Hanwa Co. has acquired a minority stake in a China-Indonesia steel mill joint venture in Indonesia to expand sales of its products in the Southeast Asian country and beyond.
Hanwa bought a 10 percent stake in PT Dexin Steel Indonesia in Morowali Industrial Park in Sulawesi, Central Sulawesi Province, for an undisclosed sum, a spokesman in Tokyo told NNA on Tuesday.
Dexin Steel Indonesia was a three-way JV involving PT Indonesia Morowali Industrial Park in Sulawesi, the industrial park operator, Chinese steel maker Delong Holdings Ltd. and Shanghai Dingxin Investment Group Co. under Chinese industrial conglomerate Tsingshan Holding Group Co., according to Hanwa’s statement on Monday.
The integrated steel mill established in 2017 began rolling out pig iron from its first blast furnace on Sunday. It has an annual output capacity of 3.5 million tons and makes slabs, billets, bars and wire rods, with a plan to further expand to 5 million tons. A second furnace will become operational in May, the statement said.
Through the capital injection, the Japanese trader aims to commit to sales of at least 1 million tons of finished and semi-finished steel products per year while supplying steel materials like alloyed iron to Dexin Steel Indonesia.
Indonesia currently imports 5 to 6 million tons of semi-finished steel products annually, according to the statement.
In the industrial park in Sulawesi, Tsingshan Holding Group Co. also runs nickel pig iron and stainless steel mills, a rolling process facility with a 3 million ton capacity per year.
The Chinese group also has a plant making nickel and cobalt compounds for cathode materials used for lithium-ion batteries in electric vehicles. Hanwa has a minority stake in this manufacturing unit, the statement said.