Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Indonesian steelmaker PT Gunung Raja Paksi Tbk (GRP) has decided to invest $850mn (IDR12 trillion) to boost its production efficiency and to facilitate market expansion in the post-COVID scenario.


The steelmaker has recently signed a contract for the second phase of investment to consolidate their position in the steel industry.

The total investment of $850mn would be disbursed in two stages. The first stage of investment comprises $370mn or IDR 5.2tr to be disbursed over the period 2019-2021 while rest would be disbursed over the period 2021-2023 in the second phase. 


The company has initiated development of machines for making H beams and U type iron for light section mills, blast furnaces, transformers, and machines for making large H beams and angles for medium section mills in the first phase.


In the second stage, the expansion will be conducted to develop pipe-making machines, coil-cutting machines, and a hot-rolled coil (HRC) factory. 


The national bodies including Indonesian Chamber of Commerce and Industry (KADIN) have supported the initiative despite bearish sentiments in the midst of the COVID-19 pandemic. Industry participants feel the firm has taken advanced steps with a mature strategy to tap industry demands.


($1= IDR14,441.7)

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