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Japanese spare part maker in Indonesia agree to increase steel local content-The 19th China (Guangzhou)Int¡¯l Fastener & Equipment Exhibition
12/21/2017 fastener expo |
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The Jakarta Post reported that Japanese automotive spare parts producer Sango Corporation has agreed to use products of state-owned steelmaker Krakatau Steel as part of Sango¡¯s efforts to increase local content. Under the agreement, Krakatau Steel will process raw materials imported by Sango to become wire rods that will be used by Sango to produce automotive spare parts in its factory in Karawang, West Java.
Krakatau Steel president director Mas Wigrantoro Roes Setyadi told reporters in Jakarta that "Through the cooperation, Krakatau Steel will produce 40,000 tons of wire rods a year. Production will start early next year.¡±
The Indonesian automotive sector uses about 150,000 tons of wire rods a year, mostly imported.
Meanwhile, Industry Minister Airlangga Hartarto welcomed the agreement, saying it would increase local content in the automotive industry in the country. The ministry added that ¡°The cooperation will set a milestone in Indonesia¡¯s automotive industry.¡±
Mr George Halasi president director of TSIG Holding Pty Ltd, a Sango subsidiary, said his company had invested USD 40 million, but the total investment was projected to reach USD 95 million.
However, Mr Halasi said the investment projection relied on the ministerial regulation and the market prospect of automotive spare parts. He added that the local content of its products will initially be at about 30 percent and will be gradually increased to 60 percent.
-The 19th China (Guangzhou)Int¡¯l
Fastener & Equipment Exhibition
- Fastener exhibition,2018 Fastener
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