China‚Äôs state-owned steel company Guo Feng Iron Steel plans to relocate in the near future its production plant in Tang Shan, China, to Indonesia with a total investment of US$1 billion, a government official said on Monday evening.
Industry Ministry Director General for Metal, Machinery, Textile and Miscellaneous Industries Ansari Bukhari said that the government of China had requested the company to move its plant in Tang Shan because it was located inside the city area and produced intolerable amount of pollutions.
‚ÄúThe company has visited several countries, including Indonesia, to look for a suitable location for the relocation,‚ÄĚ he told reporters after meeting the representatives from the company at the ministry.
He said that the company came to the industry ministry to directly discuss with Minister M.S. Hidayat about Indonesia‚Äôs foreign investments, particularly in the steel industry.
‚ÄúBasically, the minister fully supports the relocation plan. The minister will back up the company in obtaining business permits, looking for lands and ensuring energy supply for its production activities,‚ÄĚ he said.
The relocated plant will have a capacity of producing 3 million tons of steel per year using the blast furnace technology. The plant is estimated to consume over 2 million tons of coal per year. (rdf)