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The move will enable Jatim to reach annual output of 170,000 tonnes by 2020, with 100,000 tonnes of special steel bar and 70,000 tonnes of flat steel, the Japanese steelmaker said on Wednesday July 30.
Based in Surabaya in eastern Java, Jatim currently boasts an annual capacity of 120,000 tpy, including billet and ferro-silicon.
Mitsubishi Steel aims to strengthen its co-operation with Jatim through the investment, amid increasing demand from Indonesia and other countries in Southeast Asia, and also to help its major clients in the automotive and machinery manufacturing sectors.
Mitsubishi Steel started providing technical support to Jatim in 2010.