Australia's biggest steelmaker BlueScope Steel Ltd on Monday (21/5/07) announced it will spend $101 million to expand its operations in Indonesia, Dow Jones Newswires reported.
The Melbourne-based company plans to build a second metallic coating line at its Cilegon operation west of Jakarta.
Construction of the line, expected to be operational by the end of 2009, had previously been postponed as BlueScope focused on other developments already underway in Asia.
"We are delighted to recommence this investment given the continued strength of the Indonesian market and the high regard for BlueScope Steel product," chief executive Kirby Adams said in a statement.
BlueScope said the new line, which produces thin gauge steel used primarily in residential construction, will have a maximum bare metal coating capacity of 170,000 metric tons a year.
The line is expected to boost Cilegon's production by 130,000 tons of metal-coated output and 100,000 tons of painted output a year.