Jiangsu Province-based Chinese steelmaker Nanjing Iron and Steel Group Co. (Nanjing Steel) has announced that its board has agreed to set up an integrated steel plant with an annual output of 1 million mt in Indonesia in cooperation with Indonesia-based PT Gunung Gahapi Sakti (GGS).
Accordingly, Nanjing Steel will first invest RMB 130 million ($21.3 million) to set up a Nanjing-based joint venture company with Jiangsu MonTop Group Co. and Jiangsu Metallurgical Machinery Co., in which Nanjing Steel will hold a stake of 81.25 percent. This joint venture will invest $26 million to set up an Indonesia-based joint venture with Singapore-based Jinteng International Co., with Jinteng to invest $0.4 million. Finally, this Indonesian joint venture will in turn establish a joint venture with PT Gunung Gahapi Sakti (GGS), with each side to hold a 50 percent stake in the JV.