Indonesian steel producer PT Gunung Steel Group has earmarked a capital expenditure budget of $60 million to expand its production capacity, especially by upgrading its light and medium section mills in the next one to two years, SteelOrbis has learned.
The company aims to expand its production capacity to 1.1 million mt, producing 980,000 mt of H-beam at its light and medium section mills, increasing the mills’ capacity from the current 480,000 mt.
Meanwhile, in 2019, PT Gunung Steel Group constructed a blast furnace with an investment of $200 million, but the launch of the furnace was postponed. The company plans to put its blast furnace which has a 700,000 mt capacity per year in operation starting from April-May this year and the production capacity may increase to 1.2 million mt per year, SteelOrbis has learned from market sources. According to the company’s statement, PT Gunung Steel Group has a production capacity of 2.1 million mt at the moment, but, due to the tough market conditions, it has to work with reduced production. The group is producing a wide range of construction steel products, including H- and I-beams, angles, and wire rods. Also, a part of the company is focused on production of slabs (using crude steel from existing EAFs) and plate and some other flat steel products. The launch of the blast furnace by PT Gunung Steel will make the company produce steel plates with a thickness of up to 80 mm (from the current 50 mm).