Jakarta (ANTARA News/Asia Pulse) - China's state-owned steel company Guo Feng Iron and Steel plans to move its factory from Tangshan, China, to Indonesia with a total investment of US$1 billion, a government official said.
Guo Feng will team up with PT Gunung Garuda to produce steel in Indonesia with blast furnace technology next year, Gunung Garuda chief commissioner Jamaludin said. Industry Ministry Director General for Metal, Machinery, Textile and Multifarious Industries Ansari Bukhari said that the Chinese government had told the company to move its plant because of pollution it caused locally.
Jamaludin said Guo Feng chose Indonesia because of the availability of iron ore in abundance in the country. The factory to be reassembled in the country will have the capacity to produce 3 million tons of steel and will need over 2 million tons of coal per year.
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