Steel Industry Breaks US Market, Supplying Demand for Electric Car Makers

Steel Industry Breaks US Market, Supplying Demand for Electric Car Makers

Monday, March 21, 2022

The steel industry is one of the strategic sectors or known as “industrial mother” because it plays an important role in supplying raw material requirements to many other industrial sectors. Among them are the construction sector, transportation equipment, heavy equipment, electronic equipment and defense equipment.

“Through the implementation of Industry 4.0 in Indonesia, the steel industry in the country must be able to be the leader in innovation and capacity building to meet basic materials for industrial users. That way, we can be highly competitive compared to products produced by other countries,” said Minister of Industry Agus Gumiwang Kartasasmita during the Release of Steel Exports to the United States by PT. Gunung Raja Paksi Tbk (GRP) in Cikarang West , Monday (21/3).

The Minister of Industry said, after going through the waves and various types of the Covid-19 epidemic, the primary mineral industry was able to record a positive growth in the fourth quarter of 2021 of 11.31%, an increase compared to the previous quarter which was 9.52%. “The growth of this sector is greater than the average growth of the national sector. I thank all the stakeholders of the steel industry in the country,” he said.

The Minister of Industry revealed that the contribution of the industrial sector to the economy can be seen in three aspects. First, expansion through increased investment. “We see that PT Gunung Raja Paksi Tbk. has increased investment, one of which is light parts mill (NGO) which is expected to start production in April this year and start working blast furnace September only,” he explained.

The second contribution is through exports that bring in foreign currency for the nation and the government. “GRP presented its plan to increase the share of exports to 20% in 2022,” said the Minister of Industry.

Third, the increase in industrial structure. The Minister of Industry hopes that all steel industries can strengthen the structure immediately, participate in building and fulfilling the steel supply chain, from upstream, to produce cheap and high-quality raw materials.

The fulfillment of high-end products as raw materials for low-end products that are highly innovative, must be achieved through coordination. supply requirements national metal. “For that reason, the Government has prepared a national industrial development policy in accordance with the Comprehensive Industrial Development Plan (RIPIN) for the year 2015-2035, which has now entered the second phase of 2020-2024 with a national goal of capacity of iron to be 17. million tons,” he said.

Through the achievement of large investments made by a number of companies, the government hopes that the goal of increasing the capacity of the national steel industry can reach 11.9 million tons. This is also supported by the 10 Million Tonnes Pillar Project in Cilegon – Banten which is expected to bring multiplier effectnot only in terms of work, but also tax revenue, and contribution to the National GDP.

In addition, the sector also contributes through production processes that are more environmentally friendly. We appreciate that PT GRP has started buying carbon credits as part of the promise to the world that efforts to protect the environment cannot be separated from industry,” explained the Minister of Industry.

Exporting steel to the United States

GRP exports structural steel to Casa Grande, Arizona-USA. Especially for electric car industry company, Lucid Motors. In this event, the Minister of Industry released the sales of this type of product structural beams volume 700 MT with a value of USD 1 Million. “To export to the United States, sufficient certification is required. The product sent today already complies with certifications from several international organizations that are not easy to obtain. It is an honor for us that Children of the Nation can do that,” said the Minister of Industry.

President Director of PT Gunung Raja Paksi Tbk. Abednedju Giovano Warani Sangkaeng said that this was a provision trial order for the construction of the Lucid Motors factory. According to him, this shipment shows that local steel products have successfully penetrated the export market to America.

The export of steel to Uncle Sam’s country is the company’s effort to reach its 2022 export goal of 70 million dollars. In addition, to increase the share of exports to 20 percent, compared to 2021 which is only 5 percent. In 2021 alone, the value of exports achieved by GRP will reach 44 million dollars.

PT. GRP, which was founded in 1970, is a steel company that plays a strategic role in the development of the national steel industry. This is shown by implementation of PT investment. The GRP arrived in 2021 of USD 488.71 million (about IDR 7 trillion) for producing steel from upstream to downstream. In addition to domestic sales, PT. GRP has exported the value of 45 million dollars or an increase compared to 2020 which reached 28 million dollars.

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