JAKARTA - The Ministry of Industry (Kemenperin) believes that the Continuous Galvanizing Line (CGL) 2 facility, PT Tata Metal Lestari in Purwakarta, West Java, can strengthen the upstream to downstream ecosystem of the national steel industry, as well as increase domestic added value.
"With the existence of Project CGL 2 which uses machines and technology from Tenova, Italy, we hope that there will be a strengthening of the upstream-downstream ecosystem which will also increase added value in the country. So that it can increase the competitiveness of the national industry," said Director of the Metal Industry of the Ministry of Industry Dodiet Prasetyo at the groundbreaking of the CGL 2 facility, Kirin Project in Purwakarta, quoted by Antara, Monday, January 26.
CGL is a continuous steel coating technology based on zinc magnesium and zinc aluminum magnesium.
The technology applied by this national company is able to increase the life of steel up to four times.
In addition, the production facility has also been equipped with a hydrogen-based burner that has low emissions, so that the resulting steel sheet is in line with the direction of green industry development.
"This project will certainly increase national competitiveness, create job creation, and also empower the local economy," said Dodiet again.
Meanwhile, VP of Operations of PT Tata Metal Lestari, Stephanus Koeswandi, stated that the construction of CGL 2 is part of the company's commitment to strengthening the national steel industry (midstream).
The industry, he said, has a crucial role as a link between upstream and downstream industries, considering that if this sector is not competitive, the supply chain will be fragile and import dependence will continue to be high.
He also explained that PT Tata Metal Lestari is currently not only able to meet domestic needs, but has also exported steel sheet products to 25 countries, including to the United States and European markets which have high quality standards.
"The construction of CGL 2 is part of the company's roadmap to achieve an installed capacity of up to 2.5 million tons of steel sheets gradually over the next 10 years, while supporting the program to Increase the Use of Domestic Products (P3DN) and presenting Made in Indonesia products with global standards.
This new facility, continued Stephanus, will produce 250 thousand tons of steel per year, which will complement PT Tata Metal Lestari's total production of 500 thousand tons of steel per year which had previously been produced at CGL 1 Cikarang.
In the development of this facility, his party partnered with Tenova, an Italian technology company, to ensure the implementation of the best and most efficient technology.
In order to spur the performance of the national steel industry, the Ministry of Industry continues to optimize various strategic policies, including the implementation of trade security measures (trade remedies), the implementation of mandatory Indonesian National Standards (SNI), the provision of Certain Natural Gas Price (HGBT) facilities, the preference for the use of domestic products, the provision of fiscal incentives, and the application of the green industry principle.
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