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BlueScope to Boost Capacity at Indonesian Plant
12/02/2009 - BlueScope Steel plans to complete construction of its second metallic coating line, with inline painting capability, at its plant in Cilegon, Indonesia. The company expects to commission the facility around mid-2011.
BlueScope Steel plans to complete construction of its second metallic coating line, with inline painting capability, at its plant in Cilegon, Indonesia. It recently announced the decision at a major customer event in Jakarta.
"Today is a memorable occasion for our BlueScope Indonesian business,” said BlueScope Steel's Managing Director and CEO, Paul O'Malley. “Firstly, we are commemorating the 15th anniversary of Colorbond® steel production in Indonesia. Second, and even more importantly, we are here to announce the restart of construction of the second metallic coating and painting facility, which we expect to commission around mid-2011."
"Domestic market conditions, in particular residential steel demand, have improved,” added Sanjay Dayal, BlueScope Steel's Chief Executive, Asia. “Since May 2009, our existing metal coating line has been operating at full capacity, and we have been importing finished steel from our other operations in the region to meet Indonesian customer demand. We believe that now is the right time to complete this important project and boost our capacity in this key market."
Cilegon's existing line allows for 100,000 tonnes per annum of metallic-coated and 40,000 tonnes per annum of painted steel production. The new line will produce thin gauge coil (0.2 to 0.4 mm) for residential construction applications. Total combined capacity is expected to rise to 265,000 tonnes per annum of metallic-coated and 160,000 tonnes per annum of painted steel.
Capital of US $86 million has been spent on the project to date, and an estimated US $40 million will be necessary to complete the project—about US $10 million in FY2010 and US $30 million in FY2011. The principal work that remains is completion of the plant facilities, equipment installation, and commissioning.
