China Cooperates with Indonesian companies to Build Metal Processing Factory in Indonesia

A number of Chinese companies will cooperate with Indonesian entrepreneurs to increase cooperation in the metal smelting and processing sector.
Zhou Shijian, former vice chairman of the Chinese Chamber of Commerce for the Export-Import of Metal, Mineral, and Chemical Affairs, said that the cooperation in processing and smelting metal materials, especially nickel and aluminum, would help Indonesia achieve a renewable industry, as well as increase production capacity.

According to him, this cooperation can also provide added value for Indonesia.

“This cooperation will also reduce Indonesia’s exports of raw materials,” he said as quoted by Antara, Tuesday (7/12). He said one of the collaborations would be carried out by Chengtun Mining Group, a metal products mining and trading company based in Xiamen, Fujian Province.

Chengtun Mining plans to work with an unnamed Indonesian partner to build a new company with an initial investment of US$1 million. Construction work on the processing and smelting project will begin in June or July 2022, which is planned to produce 40 thousand tons per year.

“After production, our products can meet all markets. However, we will prioritize exports to the Chinese market if there is demand,” the company said in a statement. Huayou Cobalt, another Chinese company, will start trial production in Indonesia this month. The project is designed to produce 60 thousand tons of nickel and metal per year.

Then there is China Hongqiao Group, which plans to increase its second stage of aluminum production in Indonesia, after the previous stage went smoothly. “Our target is to reach the designed production capacity in 2022, but to be able to fully produce this year,” said Hongqiao.

For information, Indonesia is China’s largest ferronickel importer. Around 84 percent of China’s total ferronickel imports come from Indonesia. During January-October 2021, the volume of ferronickel imports from Indonesia reached 2.61 million tons, an increase of 21.13 percent compared to the same period in 2020.