May 22 2007
BlueScope Steel today announced it will recommence the expansion of its operations in Indonesia with the investment of US$101 million to complete construction of a second metallic coating line, with in-line painting capability, at its Cilegon operation, located 100 km west of Jakarta.
The new line will be dedicated to producing BlueScope Steel's thin gauge (0.2 - 0.4 mm) coil, used primarily in residential construction. The investment will allow the existing metallic coating line to consistently process 0.4 - 1.0 mm coil and run at optimal capacity, thus contributing to higher output. Overall, the new line will provide greater manufacturing efficiencies and economies of scale in the growing Indonesian market.
The new line is expected to be operational by end CY2009. The original construction of the second line in Indonesia was postponed last year in order to focus resources on projects already under development in Asia. With their completion, and the strong market demand for light gauge coil, BlueScope Steel has now approved the recommencement of the Indonesian expansion project.
The new coating line will have a maximum bare metal coating capacity of 170,000 tonnes per annum. Due to the successful commissioning of solvent based in-line painting in China, the decision has been taken to install the same technology in Indonesia in lieu of a separate paint line. In-line painting on the metal coating line provides operating efficiencies and capital cost savings. However, when in-line painting, the line speed needs are reduced resulting in lower capacity and output.