China Knowledge reported that Wuhan Iron & Steel Co one of the leading iron and steel makers in China has teamed up with Indonesia PT Gunung Garuda to jointly invest up to USD 3 billion over the next five years to build steel plants in North Sumatra and South Sumatra of Indonesia.

Mr Djamaludin an administrative executive of the Indonesian company said the first steel plant will be built in Medan, capital of North Sumatra, and be put into operation in 2013 with an annual steel output capacity of 500,000 tons.

The second 500,000 ton steel plant also in Medan will go into operation in 2014, Mr Djamaludin added without disclosing the details of plants in South Sumatra.

Mr Mohamad Hidayat minister of Indonesia Ministry of Industry said each plant final steel output capacity is expected to reach between 3 million and 5 million tons especially for auto manufacturing.

Sources reported that Shanghai listed Wuhan Iron & Steel ranked 340th in the Fortune Global 500 list last year and the firm's current annual steel output capacity totals 30 million tons.
 

Source:steelguru