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Indonesia Morowali Industrial Park

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Indonesia Morowali Industrial Park 


  In 2009, as a proactive effort in implementing the “Go Global” strategy, Decent Group cooperated with Indonesia PT. Sulawesi Mining Investment (SMI) in the advance investment in Indonesia nickel ore mining, export and ferronickel smelting industries, as well as in the development of Indonesia Morowali Industrial Park, which is of great significantce to the promotion of China-Indonesia and China-ASEAN economic cooperations. 

  Located in Bahodopi town, Morowali regency, Central Sulawesi Province, Indonesia, northeast tip at 122°9’47”E and 2°48’55”N, Indonesia Morowali Industrial Park is close to an interprovincial highway and 1 km away from the coastline. The developer of the industrial park, also the land owner and park manager, is PT. Indonesia Morowali Industrial Park (IMIP) which is jointly invested and founded by Shanghai Decent Investment (Group) Co., Ltd. (a corporation of Tsingshan Steel, holding 66.25% shares) and Indonesia PT Bintangdelapan Group (holding 33.75% shares). In 2015, the Park was awarded “The Best Performance of New Industrial Estate”by the Ministry of Industry of Indonesia and in August 2016, it was jointly accredited by the Ministry of Commerce and the Ministry of Finance as China Overseas Economic and Trade Cooperation Zone.

  The total planned area of Indonesia Morowali Industrial Park is more than 2,000 hectares. Currently, it has sea, land and air accesses and about 466,000KW of electricity generating capacity, four secondary base stations, ten sets of satellite TV receiving systems, a 30,000-ton quay berth, eight 5,000- ton quay berths and more than 70 living buildings completed and put into use. Before the construction preparation of the Park, already established was the shipping line linking the park with the port of Tsingshan’s Fu’an production base in China and now the linkages have been expanded to the major coastal ports of China with very smooth logistics and customs clearance operations. By the end of September 2016, the actually implemented investment in the Park had come up to around USD 2.5 billion in total.

Brief introduction of the projects in the Park:
  The first project entering into the Park is the Nickel Pig Iron and Captive Power Plant Project PT. invested by Sulawesi Mining Investment (SMI), with an annual output of 300,000 Tons, a total investment of USD 628 million and an area of 95 hectares. The project was financed by China Development Bank (CDB). Four Ø4.6×100m rotary kilns and 4×33,000kVA ore-smelting electric furnaces, the 2×65MW coal-fired power plant have been built for the project and the auxiliary facilities were constructed at the same time. It can produce 300,000 tons of nickel pig iron annualy with nickel content being 10%. The construction started on July 16, 2013 and was completed for commissioning in January 2015. On May 29, 2015, Indonesian President Joko Widodo personally came to the site, announcing the formal start-up of the project.
  The second project entering into the park is the Nickel Pig Iron and Captive Power Plant Project invested by PT. Indonesia Guang Ching Nickel and Stainless Steel Industry (GCNS), with an annual output of 600,000 Tons of Nickel Pig Iron, a total investment of more than USD 1 billion and an area of 86 hectares. After completion, it is expected to produce 600,000 t/a of nickel pig iron with nickel equivalent of 60,000 t/a and to achieve annual sales revenue of about USD 1.2 billion. The construction of the project started on May 2, 2014 and was put into partial production on March 22, 2016.
  The third project entering into the Park is the Stainless Steel Slab and Captive Power Plant Project invested by PT. Indonesia Tsingshan Stainless Steel (ITSS), with an annual Output of 1,000,000 Tons of Stainless Steel Slab,a total investment of more than USD 800 million and an area of 90 hectares. CDB provided for this project a medium tenor loan of USD 570 million. The construction started on July 28, 2015. It will produce 1 million tons of stainless steel slab annually, and achieve sales revenue of about USD 2.2 billion. The project will encourage other Chinese or Indonesian manufacturers to enter into the Park and invest in the stainless steel downstream processing.
  Other projects include PT. Broly Nickel Industry Company’s NPI project with an annual output of 10,000 tons of nickel equivalent, a total investment of more than USD 100 million, and an area of 17 hectares. Its construction includes two 300,000 t/a raw material drying and grinding lines, six 3.2m×168m fully automated tunnel kilns and three 300,000 t/a continuous water immersion lines. The annual capacity will be 19,000 tons of sintered nickel after its completion; The PT. Indonesia Ruipu Nickel And Chrome Alloy company’s 600,000 Ton High-Carbon Ferrochrome (completed with energy recycling system in coking units) and 700,000 Ton Stainless Steel Cold Rolling Project, with a total investment of USD 460 million, covering an area of 40 hectares. The annual sales revenue will reach USD 1.3 billion after its completion; the 2,000,000 t/a 1,780mm hot rolling project with a total investment of USD 200 million, covering an area of 50 hectares, the annual revenue from processing will be about USD 164 million; construction works started in succession are PT. Indonesia Morowali Industrial Park’s 100,000-ton Bulk Cargo Wharf Project, and other projects associated with the supporting facilities in the Park, with a total investment of USD 100 million.
  As the first mega project substantially implemented under a train of commercial agreements between China ad Indonesia, Indonesia Morowali Industrial Park will be developed into a model overseas cooperation zone in the domain of China-Indonesia mineral resources development and cooperation.After the completion of all the projects in the mid-2017, the stainless steel slab production capacity will be 2,000,000 t/a and the annual sales revenue will reach USD 4 to 5 billion.While creating about 12,000 jobs, it will also attract more stainless steel deep-processing enterprises to invest in the Park and will be developed building itself into an exemplary industrial park and cooperation platform for bilateral cooperation in production capacity and equipment manufacturing. With more and more projects entering into the Park, it will lead the development of China-Indonesia Integrated Industry Park and the prosperity of the neighboring areas, and improve the reputation of Chinese enterprises in Indonesia with the actual achievements.