Indonesia: Permai Metal begins commercial production at 1.5-mnt steel slab facility in Morowali
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- Domestic slab output to reduce reliance on imported semi-finished steel
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- Slab production to support nearly 4 mnt annual HRC rolling capacity
PT Permai Metal Indonesia (PMMI) has commenced commercial production of carbon steel slabs at its integrated steel facility in the Indonesia Morowali Industrial Park (IMIP), Central Sulawesi, marking a significant expansion of Indonesia’s domestic semi-finished steel production capacity.
Permai Metal is a joint venture between China-based Guangxi Guixin Steel Group and Tsingshan Group. The company operates a slab production line with an annual capacity of 1.5 million tonnes (mnt), supported by an integrated blast furnace with an annual hot metal capacity of around 1.8 mnt.
The commissioning of the facility is expected to strengthen Indonesia’s domestic slab supply, reducing reliance on imported semi-finished steel while improving raw material availability for downstream rolling operations. The integrated production route is also expected to enhance operational efficiency across the Morowali industrial cluster.
The blast furnace, with an effective working volume of approximately 1,216 cubic metres, supplies molten iron directly to the slab casting facility. The plant is capable of producing slabs with widths ranging from 1,000 mm to 1,650 mm, primarily for downstream hot-rolled coil (HRC) production.
Most slabs are expected to be supplied to the nearby PT Guang Qing De Metal Rolling hot rolling plant, also located within IMIP. The facility is equipped with a 1,780 mm hot strip mill and has an annual rolling capacity of 4 mnt. The mill produces both carbon steel and stainless steel hot-rolled coils.
The commissioning of Permai Metal’s slab plant strengthens IMIP’s integrated carbon steel value chain, spanning ironmaking, continuous casting and hot rolling. The project also reflects Tsingshan Group’s continued expansion beyond its traditional stainless steel and nickel businesses into carbon steel and flat steel production, further reinforcing Indonesia’s position as an emerging regional steel manufacturing hub.
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