Synopsis
PT Dexin Steel Indonesia is set to increase its steelmaking capacity with the imminent start of its third blast furnace. Located in the Morowali Industrial Park, Central Sulawesi, the plant's capacity will rise to 7 million metric tons per year upon completion. This expansion aims to bolster production of semi-finished steel, including billet, slab, wire rod, and bar, catering to market demand.
Article
PT Dexin Steel Indonesia is embarking on an ambitious expansion as it prepares to put its third blast furnace into operation in the middle of this month. Located within the Morowali Industrial Park in Central Sulawesi, this development will significantly augment the mill's steelmaking capacity, surpassing the officially announced figure of 6 million metric tons per year and reaching 7 million metric tons per year.
While there had been earlier indications of the third blast furnace starting up in August, sources close to the company clarify that this isn't a delay but rather an adjustment in the timeline.
The existing capacity of the integrated steel plant, utilizing its two operational blast furnaces, stands at 4 million metric tons per year. With the third furnace coming online, the mill is poised to become an even more prominent player in the Indonesian steel industry.
The strategic move involves a shift in the production mix towards more semi-finished steel products, taking advantage of the additional 1 million tonnes/year steelmaking capacity. The projected output composition includes 3.3 million metric tons per year of billet, 2.2 million metric tons per year of slab, 500,000 metric tons per year of wire rod, and 1 million metric tons per year of bar products.
Previously, the company's production targets leaned towards 1 million tonnes/year of bar products, 1 million metric tons per year of wire rod, 2.2 million metric tons per year of billet, and 1.8 million metric tons per year of slab. Flexibility in the product ratio mix allows Dexin to adapt to market dynamics and changing demand patterns.
Conclusion
As Dexin Steel Indonesia takes this significant step in its expansion journey, the steel industry in Indonesia is poised for potential growth and increased contribution to regional and global markets.
Source: Steelguru
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