The Australian steelmaker BlueScope Steel has announced that it will recommence the expansion projects at its Indonesia-based Cilegon facility. The company is to invest $101 million to complete the construction of a second metallic coating line, with in-line painting capacity, at its Indonesian operations.
The new line will produce thin gauge (0.2-0.4 mm) coil, which are used primarily in residential consumption. In addition, the investment will allow production capacity at the existing metallic coating line to increase since it will consistently process 0.4-1.0 mm coil and run at optimal capacity. Thus, the total production capacity of both metal coating lines will be 265,000 metric tons per year. The commissioning of the new line is expected by the end of calendar year 2009.
In addition, due to the successful commissioning of solvent based in-line painting in China, BlueScope has taken the decision to install the same technology at its Cilegon facility. This will allow an increase in the line's in-painting capacity to 160,000 metric tons per annum.
The original construction of the second line in Indonesia was postponed last year due to BlueScope's implementation of other projects in Asia. However, with these projects' completion and the increased demand for light gauge coil, BlueScope decided to recommence its investment projects in Indonesia.
Commenting on the Indonesian investment, BlueScope Steel's managing director and CEO Kirby Adams stated, "We are delighted to recommence this investment given the continued strength of the Indonesian market and the high regard for BlueScope Steel products. Indonesia, the world's fourth most populous country, is a key market in our growing Asian business. This project represents a strong endorsement from our board of BlueScope Steel's Asian growth strategy."