PT Gunung Raja Paksi Tbk (GGRP) inaugurated the Rp 1 trillion Light Section Mill (LSM) machine. The inauguration is GRP’s commitment to meet domestic steel needs, especially the type of H Beam (I-H Section).
In this inauguration, Minister of Industry Agus Gumiwang Kartasasmita said that his party was very pleased with the efforts made by GRP. This is evidence of GRP’s strong support for the domestic steel industry.
“I’m happy, so we can use domestic products and keep it as a host in our own country. I congratulate GRP, hopefully its products can be sustainable and acceptable,” said Agus Gumiwang in his speech.
He added that currently the steel industry is considered the mother of all industries, because all downstream needs are from the transportation, construction, heavy equipment, electronics, and other sectors. require metal, iron, steel products.
“Of course the GRP company has a fairly important role,” he explained.
Meanwhile, GRP President Director Abednedju Giovano Warani Sangkaeng said the launch was a form of GRP’s commitment to meeting domestic steel needs as well as the company’s efforts to support President Joko Widodo to reduce dependence on imported goods and be proud of using domestic products.
“It is hoped that the additional GRP steel production capacity will be sufficient to meet domestic needs,” he explained.
Argo hopes that the operation of the LSM machine can support the progress of the domestic industry, especially in increasing capacity, quality and efficiency. Previously, the production capacity of steel profiles I and H Section was 480 thousand tons, then with the LSM machine, the production capacity can be increased by 500 thousand tons. Thus, the total production capacity of GRP for this type of steel is 980 thousand tons.
“The national demand for steel profiles I and H Section is around 500 thousand tons. This means, with this additional capacity, GRP can meet the domestic market within 6 to 7 years,” he said.
Argo explained that this machine investment is one of GRP’s commitments to carry out structural safeguard adjustments (protection of domestic steel products) and support the government’s program to increase national production capacity by 18 million tons by 2024.
With an investment in LSM machines of IDR 1 trillion, it means that the total investment invested by GRP to increase production capacity has reached IDR 4.5 trillion. Apart from LSM machines, another investment is in upstream products by installing Blast Furnace machines.
“We hope that the government can continue to support domestic producers considering the large investment that has been issued by GRP in order to increase production capacity and strengthen the domestic steel industry,” said Argo.
Source: cnbcindonesia
