China's Manufacture Company To Build Steel Factory

Jakarta, May 3 (Antara) - China`s manufacture company Fosun International Limited in cooperation with Indonesian steel company PT Gunung Gahapi Sakti is to build blast furnace steel company in Medan (North Sumatra province), official from the Indonesian Industry Ministry said. "Fosun will invest a US$200 million for the construction of the new factory in Medan. The factory will produce slab and billet which are useful for shipping and automotive industries" Director General for Manufacturing-based Industry Panggah Susanto said here on Friday. The director general explained Fosun chooses to establish factory in Indonesia due to high demand of steel products in the country and China`s current policy of limiting its local steel production. "Construction of the new factory is targeted to be finished in two or three years ahead. With the establishment of several steel factories in Indonesia, the country expects to reduce import of raw materials for steel production in the future," he added. Currently representatives of Fuson International Limited are still negotiating details on the establishment of the new factory with Indonesian Investment Board.