JFE Steel Supports Sermani Indonesia’s Expansion

JFE Steel and Marubeni-Itochu Steel announced on Tuesday Indonesian galvanizing steel maker, PT. Sermani Indonesia, in which JFE Steel and Marubeni-Itochu Steel have 24.49% share each, builds new continuous galvanizing line for US$ 4.6 million. The galvanizing steel maker launches the new line in May 2012 to expand the monthly output capacity by 80% to 4,000 tonnes. JFE Steel tries to follow growing steel demand by supplying steel to alliance partners in the world when the firm expanded the annual raw steel output capacity to 33 million tonnes by expanding No.3 blast furnace at Fukuyama area of West Japan works.

The Sulawesi based galvanizing steel maker has monthly 2,200 tonnes of galvanizing capacity based on 2 batch galvanizing facilities. The firm decided the expansion to meet growing demand when the demand increases in Sulawesi and neighboring islands. With the new line with air wiping, the firm can improve the productivity including zinc plating controlling while the firm will stop the operation of exiting galvanizing facilities when the new line starts operation.

The galvanizing maker established in 1969 is sole provider of galvanizing steel for construction application in Sulawesi. The president H. Rudy S. Syamsuddin controls 51.02% share of the company with 1.078 billion rupiah of capital.

Indonesian galvanizing steel demand for construction is expected to increase by annualized 10% from current 700,000 tonnes per year when Indonesian economy is expected to keep around 6% per year of growth rate. JFE Steel and Marubeni-Itochu Steel contribute to PT. Sermani Indonesia’s growth through the mother steel sheet supply.

JFE Steel joined Malaysian major cold rolled flat steel maker, Mycron Steel, Vietnamese galvanizing steel and pipe maker, Sun Steel Joint Stock Company and acquired Vietnamese spiral steel pipe maker in 2010. JFE Steel tries to expand the vertical alliance with offshore partners.