As local demand for high-end automotive steel sheet is expected to grow as automakers further expand capacity, JFE Steel, a Japanese steel producer, announced yesterday that it will that it will construct Indonesia’s first continuous galvanizing line (CGL) for automobiles

The plant will be built at MM2100 Industrial Town, an industrial estate in the city of Bekasi just outside of Jakarta. According The Jakarta Globe,the company will invest$300 million.

The company said in a statement that its new CGL will be able to produce 400,000 tons per year of galvanized steel sheet, and is expected to begin operations in March 2016.

The new continuous galvanizing line will be JFE Steel’s third CGL for automobiles in Asia, following China and Thailand, where the company already operates CGLs. JFE Steel also provides manufacturing technology for a CGL and related facilities operated by its partner JSW Steel in India.

Indonesia, Southeast Asia’s second largest automobile producer, is a production and export base for many global automakers.

According to the The Jakarta Globe, local demand for high-end automotive steel sheet is expected to grow as automakers expand capacity in line with the expected car sales of more than 1.1 million this year, almost unchanged from 2012.