Another 3 Million - Ton Steel Plant to Be Built in Cilegon, Indonesia!

Delong Steel and Krakatau Steel Join Hands to Build a New Force in Southeast Asian Steel Industry

Amid the global transformation and upgrading of the steel industry, Delong Steel Group and Indonesia's Krakatau Steel have reached a cooperation agreement to build an integrated steel plant with an annual output of 3 million tons in Cilegon, Indonesia. The project focuses on the production of high-end steel and green steel, providing high-quality and environmentally friendly steel products for the Southeast Asian market. It is expected to create over 5,000 jobs and boost local economic development.

Strong Alliance for Complementary Advantages

As a leading private steel enterprise in China, Delong Steel has an annual production capacity of 35 million tons and has been actively expanding its overseas market in recent years. The Dexin project invested and built in Indonesia in 2017 has grown into China's largest overseas full-process carbon steel enterprise, with a production capacity of 7 million tons, accumulating rich experience in operating in the Southeast Asian market.

Krakatau Steel is a leading state-owned enterprise in Indonesia, boasting significant advantages in resources, local channels and policy support. The Krakatau Posco Steel Plant, which it participated in constructing, is the first integrated steel plant in Southeast Asia, with an annual output of 3 million tons and high market recognition. The cooperation between the two sides will enable the complementary advantages of technology, experience and local resources.

Focus on High-end and Green to Meet Market Demand

The new steel plant will focus on the production of high-end steel and green steel. With the rise of the construction and automobile manufacturing industries in Southeast Asia, there is a strong demand for high-strength, corrosion-resistant and lightweight high-end steel. This project will fill the gap in the local market's reliance on imports for some high-end products.

Delong Steel has achieved green and low-carbon transformation in China. Its factory in Xindu District has invested 3.551 billion yuan in 100 environmental protection governance projects and has been awarded the National Environmental Protection Performance Class A. This time, it will introduce energy-saving, emission-reduction and resource recycling technologies to build a green demonstration base, aligning with the global green development trend and the needs of the Southeast Asian market.

Create Jobs and Promote Local Economic Development

The project will generate over 5,000 jobs, covering construction and technical installation personnel during the construction phase, as well as production, R&D, management and supporting industry positions after it starts operation, alleviating local employment pressure. Meanwhile, it will drive related industries such as logistics and catering, stimulate consumption and form a positive economic cycle.

This cooperation has injected new vitality into the Southeast Asian steel industry. After the project is put into production, it is expected to influence the regional and even global steel landscape and set a development benchmark for the industry.

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