Dexin Steel Indonesia (Dexin), launched partial production at its facility in late February 2020. The $980mn, 3.5mn mt steel site is jointly built by China’s Tsingshan Group and Jiangsu Delong at the Indonesia Morowali Industrial Park.
The location of the stainless-steel factory—among a cluster of steel complexes comprised by Morowali, Cilegon, and Batulicini that will substitute around 70-80pc of the country’s imported steel by 2025—caters to domestic demand in eastern Indonesia.
Dexin will produce 1.5mn mt of rod and wire works annually with other products that include steel bars and slab. A nickel smelter within the industrial park will supply some of the raw materials to the facility.
Construction for Dexin began in February 2018 with the feasibility study commissioned in May 2017. China-based WISDRI built the project that is 45pc owned by Jiangsu’s Singapore-based subsidiary, Jiangsu Delong, with 43pc and 12pc owned by Tsingshan’s subsidiary, Shanghai Dingxin, and Indonesia’s Moro Valley Industrial Park, respectively. The entity has $150mn in registered share capital with the remainder being financed through banks.
The Cilegon steel complex that is close to Morowali has been developed by PT Krakatau Steel with South Korean steel giant Posco in an investment totaling around $4bn. Cilegon currently has a production capacity of 4.5mn mt of carbon steel a year with scaling growth plans that may see continued construction into 2025.