Gunung Raja Paksi (GRP), Indonesia’s largest privately owned steel manufacturer, has entered an agreement with Primetals Technologies to become the first Asian steel mill outside of China capable of producing zero-carbon hot rolled coil (HRC) steel.
This move will meet the growing demand for HRC steel in Europe and position GRP as a leading low-carbon steel manufacturer in South East Asia.
GRP will integrate Primetals Technologies’ Arvedi Endless Strip Production (ESP) technology, which combines casting and rolling processes to produce thin and ultra-thin gauges.
The Arvedi ESP technology eliminates the use of fossil fuels, thereby reducing greenhouse gas emissions to zero.
The technology is set to largely replace cold rolled coil steel in Indonesia, with GRP also adopting electric arc furnace (EAF)-based steelmaking as part of its “ambitious” transition programme.
GRP plans to commence production by 2027, aiming to double its output from 1.3 million tonnes (mt) to 2.5mt of low-carbon steel, with over half destined for the EU market.
GRP executive chairman Kimin Tanoto said: “Through GRP’s partnership with Primetals Technologies, we are investing in the global competitiveness of the Indonesian steel industry to help safeguard its future, while building on the Indonesian Government’s efforts to sustainably scale this critical industry and reach net zero by 2060.”
Primetals Technologies will supply the full technological equipment including a high-speed caster and a rolling mill, as well as a complete package of electric and automation solutions for the ESP plant.
This deal provides GRP with a competitive edge for exporting to the EU in light of the carbon border adjustment mechanism (CBAM) regime, and marks a milestone in the company’s Project Green Dragon initiative, announced in November 2024.
GRP chief transformation officer Kelvin Fu said: “Our adoption of Primetals Technologies’ Arvedi ESP technology means, practically overnight, GRP has leapfrogged from its status as a well-known raw commodity manufacturer to high-end steel product producer – no other steelmaker in the world has successfully executed a category shift as swiftly as this.”
Primetals Technologies executive vice-president and head of global business unit upstream Andreas Viehboeck said: “Compared to other available technologies, the Arvedi ESP technology ensures higher energy savings and superior material yield and product quality, while guaranteeing the absence of any fossil fuel usage.
“This will allow GRP to stand out and excel on both Indonesian and international markets, enabling them to also enter into high added value quality product niches, including automotive applications.”
“GRP, Primetals Technologies partner to produce sustainable steel” was originally created and published by Mining Technology, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
