Corporate

BlueScope To Boost Capacity At Indonesian Plant

02 December 09

Construction To Restart On Second Metallic Coating Line, With In-Line Painting Capability

BlueScope Steel today announced it would complete construction of its second metallic coating line, with in-line painting capability, at its plant in Cilegon, Indonesia. The decision was announced at a major customer event in Jakarta, Indonesia.

BlueScope Steel's Managing Director and CEO, Mr Paul O'Malley, said: "Today is a memorable occasion for our BlueScope Indonesian business. Firstly, we are commemorating the 15th anniversary of COLORBOND® steel production in Indonesia. Second, and even more importantly, we are here to announce the restart of construction of the second metallic coating and painting facility, which we expect to commission around mid 2011."

Also speaking at the event, Mr Sanjay Dayal, BlueScope Steel's Chief Executive, Asia, said: "Domestic market conditions, in particular residential steel demand, have improved. Since May 2009, our existing metal coating line has been operating at full capacity and we have been importing finished steel from our other operations in the region to meet Indonesian customer demand. We believe that now is the right time to complete this important project and boost our capacity in this key market."

Cilegon's existing line allows for 100,000 tonnes per annum of metallic coated and 40,000 tonnes per annum of painted steel production. The new line will produce thin gauge coil (0.2 – 0.4 mm) for residential construction applications. Total combined capacity will rise to 265,000 tonnes per annum of metallic coated and 160,000 tonnes per annum of painted steel.

Capital of US $86 million has been spent on the project to date. The estimated cost to complete the project is a further US $40 million, with approximately US $10 million in FY2010 and US $30 million in FY2011. The principal remaining work is completion of the plant facilities, equipment installation and commissioning.

 

For further information about BlueScope Steel Limited: www.bluescopesteel.com

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Michael Reay
Manager Corporate Affairs and Corporate Brand
BlueScope Steel Limited
Tel: +61 3 9666 4004
Mobile: +61 (0)437 862 472
E-mail: Michael.Reay@bluescopesteel.com

John Knowles
Vice President Investor Relations
BlueScope Steel Limited
Tel: +61 3 9666 4150
Mobile: +61 (0)419 893 491
E-mail: John.Knowles@bluescopesteel.com

 

Don Watters
Manager Investor Relations and Special
Projects
BlueScope Steel Limited
Tel: +61 3 9666 4206
Mobile: +61 (0)409 806 691
E-mail: Don.Watters@bluescopesteel.com

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