JFE Steel building $300m galvanizing line for automobiles in Indonesia

JFE Steel will invest about $300 million to construct Indonesia’s first continuous galvanizing line (CGL) for automobiles at an industrial estate in the city of Bekasi, outside Jakarta, it said on Monday June 17.

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The 400,000-tpy continuous galvanizing line will be the Japanese steelmaker's third CGL for automobiles in Asia. The company already operates CGLs in China and Thailand.

Its wholly owned subsidiary, PT JFE Steel Galvanizing Indonesia, will handle construction and operation of the facility, as well as ensuing sales of hot-dipped galvanized steel, according to a statement from the company.

JFE Steel said it plans to commence operations in March 2016.

Indonesia, Southeast Asia’s second-largest automobile manufacturer, is a production and export base for many global automakers.

Local demand for high-end automotive steel sheet is expected to grow as automakers further expand capacity, including through the construction of new plants.

JFE Steel said it also provides manufacturing technology for a CGL and related facilities operated by its partner JSW Steel in India, in addition to its operations in China, Thailand and Indonesia.

The Japanese steelmaker said it is leveraging its world-class technologies to respond to growing demands from automakers in Asian markets for increasingly sophisticated products that can be procured locally, and to contribute to the development of steel industries in these markets.

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