PT Essar Indonesia, a member of India's Essar Group, plans to build a steel plant in West Java with production capacity of 2 million tons of billet per year, a senior industry ministry official said on Friday (4/5/07), Reuters reported.
This would be in addition to Essar's planned pellet factory in Central Kalimantan, said Ansari Bukhari, Director General of Metal and Machinery at the industry ministry.
"They are going to build an integrated steel factory which processes iron ore into pellet for steel manufacturing. They may set it up in Cilegon in Java," he told reporters.
Last November, Essar said it will invest $500 million to set up a factory in Central Kalimantan with capacity to convert 7 million tons of iron ore into 2 million tons of pellet.
Essar Indonesia is an affiliate company of Essar Steel Ltd. The company began commercial operations in 1997 and is one of the biggest producers of cold rolled steel in Indonesia.